Holiday Pop-Up in LA? The Permits to Line Up First

Holiday markets, maker fairs and short-term storefronts are some of the best ways for a young Los Angeles brand to meet customers face to face. They are also where small sellers most often get caught without the right paperwork. If you are planning a pop-up before New Year's, the permits are not complicated, but several have lead times. Here is what to line up.

Rules depend on exactly what you sell and where you sell it, so treat this as a starting checklist and confirm details with each agency.

1. A seller's permit, temporary or otherwise

If you sell physical goods that are normally subject to sales tax, such as candles, apparel, ceramics or prints, California expects you to hold a seller's permit. The California Department of Tax and Fee Administration's temporary sellers page explains that sellers at a location for less than 90 days are treated as temporary sellers and need a temporary seller's permit, which is free.

A few details matter for holiday planning:

• You can register up to 90 days before your start date, so there is no reason to wait until the week of the event.
• You need a valid start and end date for each temporary location. Several locations can share one temporary permit only if they all operate within the same 90-day period, and you cannot add a new location to an existing temporary permit later.
• If you already hold a regular seller's permit for a permanent location, you do not need a separate temporary permit. Instead, CDTFA says to register a sub-permit for each temporary location.
• Temporary permit holders must file a return by the last day of the month after the location closes. A pop-up that ends in late December means a return due by the end of January.

There are exceptions. CDTFA notes that sellers who offer only cold food that is not prepared hot are generally not making taxable sales, and people who only resell products from an approved direct-sales company may be covered by that company. Handmade goods are not an exception: the agency's list of common temporary sellers specifically includes crafts.

Sales tax rates differ by city and unincorporated area within Los Angeles County, so use CDTFA's rate lookup tool with the exact event address rather than guessing.

2. Paperwork for the event operator

Swap meets, flea markets and special events have their own reporting duties. CDTFA asks sellers at these events to give the operator specific information, and it provides Form CDTFA-410-D for that purpose. The form notes that a seller may not sell at the event without a seller's permit unless they are not required to hold one. Expect organizers to ask for your permit number, and keep a copy at the table.

3. A City of Los Angeles business tax registration

If the event is inside the City of Los Angeles, you also need to think about the city. The Office of Finance says all individuals or entities conducting business activities in the city must obtain a Business Tax Registration Certificate. Registration can be done online, and the office issues a temporary certificate or registration number right away, with the permanent certificate mailed within four to six weeks.

Remember that Los Angeles is a patchwork. Santa Monica, Pasadena, Culver City, Long Beach and dozens of other cities in the county run their own business licensing, so check the city where the market actually takes place.

4. Health permits if you sell food

Food adds a layer. The LA County Department of Public Health defines a community event as one held for no more than 25 days within a 90-day period, with two or more temporary food booths or three or more food trucks. Each food booth generally needs its own temporary food facility permit, and the event organizer needs a separate organizer permit.

Timing is the trap. The county says organizer applications are due 30 days before the event, and applications submitted fewer than 14 days out are considered late and carry an extra fee of 25% of the permit fee or $50, whichever is greater. Cottage food operators and even permitted restaurants may need additional booth permits to sell at an event. Long Beach, Pasadena and Vernon run their own health departments, so vendors there should follow local rules.

The county also distinguishes public events, which are open to anyone or publicly advertised, from invitation-only private events, which generally do not require a health permit.

A four-week pop-up prep plan

These steps are our suggestions, not agency requirements:

1. Week 1: Confirm your booth or space, then ask the organizer which permits they require and by when.
2. Week 1: Register for your CDTFA temporary permit or sub-permit with the exact dates and address.
3. Week 2: Register with the city where the event takes place, if you are not already.
4. Week 2: If you sell food, submit health permit paperwork through the organizer at least 30 days ahead.
5. Week 3: Set up your point-of-sale system with the correct local tax rate.
6. Week 4: Print copies of every permit, and set a calendar reminder for your sales tax return.

Paperwork is not the fun part of a pop-up, but it protects the part that is: the sales.