Buying wholesale in California: seller's permits & resale certificates

Do I need a permit to buy wholesale?

Strictly speaking, no — anyone can walk into most Toy District stores and buy. But if you're buying for resale and want to skip California sales tax on your purchase, you need to give the seller a resale certificate, and to issue one you need a California seller's permit.

The seller's permit is issued by the CDTFA (California Department of Tax and Fee Administration) and is free. You register once for your business, then you can issue resale certificates to any wholesaler you buy from.

How the resale certificate works at the counter

A resale certificate is a short form (CDTFA-230 is the standard template) stating that you're buying the goods to resell them. You give it to the wholesaler; they keep it on file and don't charge you sales tax. You then collect sales tax from your own customers when you sell.

In practice, Toy District wholesalers vary: some ask for your resale number before quoting wholesale prices, others just sell at wholesale to anyone buying by the case. Having the certificate ready marks you as a trade buyer and usually gets you better treatment.

• Register for a seller's permit at cdtfa.ca.gov (free).
• Print or save a filled resale certificate (CDTFA-230) with your permit number.
• Out-of-state resellers: many CA wholesalers accept your home-state resale documentation, but policies vary — ask.
• Buying for your own use (parties, events) is not resale — you pay sales tax, no permit needed.

MOQs: how much do you have to buy?

Minimum order quantities in the district are usually small compared to importing: by the dozen, by the case, or a dollar minimum per order. Many stores sell single pieces at a retail markup and only apply wholesale pricing from a threshold ("minimum 6 pieces" is a common pattern).

MOQs are store-by-store and rarely posted. This directory tracks MOQ per store as we verify listings in person — where you see it on a store page, it came from a field check.

A caution on branded goods

Licensed and brand-name items (popular character plush, collectible figures) sold far below normal wholesale can be counterfeit. Selling counterfeits exposes you, not just the wholesaler, to platform bans and legal risk — TikTok Shop and Amazon both enforce actively.

Ask for the licensed distributor's invoice on branded goods, and be skeptical of prices that are too good. Generic and unbranded toys avoid the problem entirely.

Not legal or tax advice

This page summarizes public CDTFA guidance for orientation. Rules change and situations differ — confirm specifics with the CDTFA or a tax professional.