Legalities about using a California Sellers Permit and Inter-state sales.
Here is some background info:
Corporate A: Hereanafter referred to as "ACorp" is a California corporate with a retail/wholesale location in California, but is completely wholesale at this time.
Corporate B: Hereinafter referred to as "BCorp" is a Delaware corporation
with a retail (virtual) location in Delaware.
1. ACorp is involved in purchasing merchandise from various suppliers and selling them to BCorp.
2. ACorp is not currently involved in any retail sales in california
3. ACorp fulfils orders (via internet) for BCorp, in other words ships the merchandise to BCorps customers directly across the world, from California and bills BCorp for the merchandise and fulfilment service.
4. BCorp is in Delaware, therefore BCorp is not required to charge sales tax in Delaware (as per the state laws).
5. I am planning on getting a sellers permit for ACorp so I can avoid paying taxes to its suppliers by being able to issue them resale certs. BCorp only has one supplier, which is ACorp.
Here are the Questions:
1. Considering we are not selling any merchandise (retail) in California, and are selling them to BCorp (in Delaware), but also shipping them to BCorps customers (which may reside in California), would there be any tax required to pay to California on those sales?
2. Would BCorp need to pay any interstate sales tax to California if it sells merchandise to california customers?
3. ACorp has been operating since 2005, and is now considering obtaining a CA sellers permit. Would there be any liability or penalties which may be charged by the Ca BOE for not obtaining a permit sooner?