A wholesale license is required for any business selling or buying goods or services in the state of Florida. A wholesale license is also known as a Florida resale certificate, Florida seller’s permit, or Florida sales tax permit.
Who Needs a Wholesale License?
Any type of business entity that operates in Florida can require a seller’s permit. If your business sells goods or services or if your rent or lease commercial property, you need to have a seller’s permit.
Additionally, online eCommerce retailers that sell goods in Florida and businesses that sell products and services at conferences and trade shows in Florida should have a resale certificate.
What Paperwork Is Required to Get One?
You will need all relevant information about your business, including your social security number, employer identification number (EIN), fictitious name registrations, email address, personal references, bank account information, and business registration information.
Steps to Get Your Wholesale License in Florida
Step 1: Choose a Business Structure
When starting a business, you need to decide on the structure of your business, such as a sole proprietorship, partnership, LLC, or corporation.
Step 2: Register Your Business
Before you can get a seller’s permit you need to register your business with the state of Florida and obtain a business license.
Step 3: Apply for Your EIN
An EIN is like your social security number, except it is for your Florida business. You can obtain an EIN from the IRS by filling out an online application. You will need an EIN to file tax returns for your business, as well as to pay federal employment taxes for your employees.
Step 4: Obtain Your Seller’s Permit
There are two ways to obtain a seller’s permit in Florida. You can apply online through the Florida Department of Revenue or use an expedited ordering process through a third-party service like FastFilings.
Using our service helps you avoid confusing Florida paperwork and application forms like form DR-1. Plus, you won’t have to worry about making mistakes on the application, which could lead to a rejection.
You can have your seller’s permit within a few hours, in most cases, so you can start selling your goods and services right away.
What’s the Difference Between a Seller’s Permit and a Resale License in Florida?
The state of Florida does not have separate seller’s permits and resale licenses. Rather, your seller’s permit is also your resale license, wholesale license, and sales tax permit. With your seller’s permit, you can sell taxable goods and services to consumers.
Furthermore, it allows you to exempt yourself from paying taxes when buying merchandise from your vendors and supplies that you plan on reselling. While you are not required to pay sales tax, you will need to collect sales tax when you sell the merchandise to your customers.
Are Vendors Required to Accept a Resale License in Florida?
Vendors do not have to accept resale licenses in Florida. They can still charge a business sales tax on merchandise they supply. However, most vendors do accept resale certificates and waive sales taxes.
If you encounter a vendor that does not, you should keep detailed records. You can get a sales tax credit when you file your sales taxes with the state. Additionally, you will still need to collect sales tax from your customers, even though you were charged sales tax too.
Does a Florida Wholesale License Expire?
As long as you are using your Florida wholesale license, it will never expire. Technically, they do expire on December 31st each year, but the state automatically renews active licenses, so there is no need to reapply for a new one.
However, if you do not use your license for more than a year, the state may cancel it. If they do, you must reapply and obtain a new license before you can resume selling goods and services in Florida.
Can I Buy Merchandise in Florida with a Resale Certificate from Another State?
Florida requires all out-of-state businesses to obtain a Florida resale certificate to avoid paying sales taxes on merchandise purchased in the state. Otherwise, you are charged sales tax on any goods you buy, even when you plan on reselling the goods to your customers.
Out-of-state businesses are also required to collect sales taxes on any goods they sell to their customers in Florida since they have a Florida resale certificate. So, keep this in mind when deciding if not having to pay sales tax in Florida on your merchandise for your small business is worth the added responsibility of having to collect sales tax from your customers in Florida.
Ready to Get Your Florida Wholesale License?
If you are ready to get your Florida wholesale license to start selling goods and services in Florida, as well as to take advantage of not paying sales taxes to your vendors and suppliers, fill out your application online at FastFilings today!