Do you have to have a license to sell jewelry in Florida?
To sell jewelry from home in Miami, you first need to create a business structure and register for a Florida Business Tax License. For a single member LLC, you need to provide the owner’s Social Security Number (SSN) and the business’s employer identification number (EIN) to the state. Corporations only require your EIN. You also need to provide the legal name of the business, business type, address, and the date that the business began. You apply for an EIN through the IRS website.
Is a seller’s permit free in Florida?
You also need a sales tax license to register the business with the state of Florida, which entails filing a seller’s permit application at no cost. This can be done by filling out a Florida Business Tax Application (DR-1) either online or in person at a taxpayer service center or the Department of Revenue (DOR). Upon approval, you will receive a Certificate of Registration (DR-11). This seller’s permit does not expire unless it is unused for over a year.
Additionally, you need to register their business with the Florida Department of Revenue to collect and pay sales tax. To do this, you need a Florida Annual Resale Certificate for Sales Tax (DR-13), also known as a tax exemption certificate. This enables you to buy goods wholesale without paying sales tax. To qualify, the person or business must certify that the property or services will be resold or re-rented for a purpose that complies with those listed on form DR-13. The Annual Resale Certificate cannot be used to make tax-exempt purchases or rentals of property or services that will be used, but not resold or rented. Thus, if you purchase a tax exempt item intending to resell it, but then use it personally, you have to report and pay use tax on the item.
How long is a seller’s permit valid for in Florida?
Sellers must document each tax exempt sale for resale by either obtaining a copy of the customer’s Annual Resale Certificate, obtaining a transaction authorization number using the customer’s Annual Resale Certificate number, or obtaining annual vendor authorization numbers for the customers each calendar year. While the Annual Resale Certificate is only valid for one year at a time, it is automatically renewed. If you would like to sell jewelry at Florida conventions, you need a separate permit from the Department of Revenue.
Each sale of goods such as jewelry in Florida is taxable, unless the transaction is exempt. Florida’s general state sales tax rate is 6%. If you purchased a taxable item in Florida and did not pay sales tax, you now owe use tax. You also owe use tax if you buy an item tax exempt intending to resell it and then use the item for your own business or personal use, or if you purchase a taxable item outside of Florida and bring it in without paying sales tax.
You must also determine if you are responsible for transient rental taxes and discretionary sales taxes. For example, Miami-Dade County imposes a Local Option Transient Rental Tax of 6.0%, which is a tax on the rental or lease of living, sleeping or housekeeping accommodations for a term of six months or less. The Local Option Transient Rental Tax also includes the tourist development tax, a convention development tax, a tourist impact tax, and municipal resort tax, and is imposed in addition to the 6% state sales tax and any applicable discretionary sales surtax. This tax is reported directly to the county, while the sales and discretionary sales surtax is remitted to the DOR using the Sales and Use Tax Return (DR-15). A discretionary sales surtax, or a local option county tax, is imposed by most counties in Florida and applies to transactions subject to sales tax. Miami-Dade county has a total surtax rate of 1%. A chart on the Discretionary Sales Surtax Form (GT-800019) shows when a transaction is subject to a discretionary sales surtax.
Finally, as a business selling secondhand goods such as jewelry, you must register as a secondhand dealer. Businesses in Florida that sell precious metals or jewelry through a website, U.S. Mail, or telemarketing must register as mail-in secondhand precious metals dealers. Dealers must abide by Chapter 538, Florida Statutes.
If you are a retail business owner and would like information on licenses and permits needed, please do not hesitate to contact one of our experienced lawyers at EPGD Business Law with offices located in Miami, FL, Washington, D.C., and West Palm Beach, FL. Call us at (786) 837-6787 or email us at info@epgdlaw.com to schedule a consultation.
