If you do FBM, they way it reads is yes, you can close your account unless you meet the threshold. If you do FBA…that’s another story. CA currently see FBA as physical nexus so you are “a retailer engaged in business in this state” as quoted in email. That is my understanding

I am wondering the same thing. I just opened an account last month as well as a sole prop but now just opened a CA LLC and was about to register to collect under the LLC. I still have the paperwork to mail off to close the sole prop seller’s permit and do the final tax return. Now I am not sure if I should still go ahead and register my LLC or not. I didn’t get an email so I think I will hold off for now since I am out of stock for another month or so.

CA passed the Marketplace Facilitator law.

In addition, CDTFA was illegally harassing sellers.

Thank a man named Paul Rafelson. He founded an online merchant’s guild and has been a major pusher in getting this done.

So now we’ve got California out of the way.

Who wants to bet we’ll start getting harassing emails from New York next?

This from the email could be funny…
“you may either close your account or continue to collect the use tax as a courtesy to your California customers”
This is an admission by CDTFA that California residents have to pay use tax on their internet purchases when filing for CA state tax return…
So, CDFTA should collect all back taxes from their residents…why bother us ?

To provide a reference re New York: Go to New York Advisory Opinion No. TSB-A-12(1)©, (2/9/12); “However, Section 1101(b)(8)(v) specifically excludes from the definition of a vendor ‘a person who is not otherwise a vendor who purchases fulfillment services carried on in New York by a person other than an affiliated person.’” That is called New York’s “Fulfillment Exception.” But if you cross the economic nexus threshold of $300,000 in the past four quarters, you no longer qualify for that exception. Verify this for yourself, of course, then know that New York is one state you may cheer rather than whatever you do regarding CDTFA and California’s physical nexus FBA stuff.