If you dropship or buy inventory for resale and a supplier asks for California resale documentation, the form you will usually hear about is the California General Resale Certificate, CDTFA-230.
California is a state to treat carefully. A generic multistate certificate is not always enough, and the standard California certificate generally expects a valid California seller's permit number.
Informational only. This article is not tax, accounting, or legal advice.
What the California resale certificate does
A resale certificate tells a supplier that you are buying goods for resale, not for your own use. When the certificate is valid for the transaction, the supplier can support treating the sale as a resale sale instead of charging sales tax on the inventory purchase.
In California, CDTFA-230 asks for details such as:
- The purchaser's seller's permit number.
- The purchaser's business name and address.
- The seller's name.
- A description of the property being purchased.
- The purchaser's business activity.
- A signature and date.
If you are new to the concept, start with what is a resale certificate? and resale certificate vs. seller's permit.
Can out-of-state dropshippers use a home-state certificate?
Do not assume a home-state certificate will be enough for California. California's general resale certificate normally requires a California seller's permit number.
There can be limited drop-shipment fact patterns where California's rules need a closer look, especially when suppliers, sellers, and ship-to states differ. CDTFA Publication 103 is the official starting point for California sales-for-resale rules. If your supplier is asking for California documentation, confirm what permit number and form the supplier will accept before sending a generic certificate.
How to get set up in California
Here is the practical sequence:
- Register through CDTFA Online Services if your business needs a California seller's permit.
- Gather your business details, ownership information, federal employer identification number if applicable, and expected sales activity.
- Download or complete California General Resale Certificate CDTFA-230.
- Fill in the certificate with your California seller's permit number and the supplier's name.
- Describe the goods being purchased for resale clearly.
- Sign the certificate and give it to the supplier.
- Keep a copy with your vendor records.
California registration is generally free, though CDTFA says a security deposit may be required in some cases.
Key facts
- Tax agency: California Department of Tax and Fee Administration.
- Registration portal: CDTFA Online Services.
- Resale document: California General Resale Certificate, CDTFA-230.
- Registration cost: generally free, with possible security deposit requirements.
- Streamlined Sales Tax status: California is not an SST member.
- Vendor records: the supplier usually keeps the certificate on file rather than you filing it with the state for each purchase.
Where dropshippers should slow down
Pause before sending California resale documentation if:
- You do not have a California seller's permit number.
- The goods are not actually being purchased for resale.
- The supplier is asking for a different California form or account detail.
- The transaction involves a drop shipment with parties in multiple states.
- You are unsure whether your business has California nexus.
For the nexus side of the dropshipping workflow, see dropshipping and sales tax nexus, explained.
Frequently asked questions
How much does a California resale certificate cost?
The California General Resale Certificate itself is free to complete. Registering for the underlying California seller's permit is generally free, though a security deposit may be required in some cases.
What form do I need for resale in California?
California's general resale form is CDTFA-230, the California General Resale Certificate. You complete it and give it to the supplier for its records.
Is California part of Streamlined Sales Tax?
No. California is not a Streamlined Sales Tax member state, so do not rely on SST membership as the basis for California resale documentation.
Do dropshippers need a California resale certificate?
Often, yes, if a supplier needs California resale documentation or if your business has California registration obligations. The exact answer depends on your nexus, supplier, ship-to state, and the certificate the supplier will accept. For broader dropshipping context, see do dropshippers need a resale certificate?.
Practical takeaway
For California purchases, start with CDTFA Online Services and CDTFA-230. Confirm whether your business needs a California seller's permit, use the correct permit number on the certificate, and keep the completed certificate with your vendor records.