Founded in 2005, Etsy is one of the world’s largest marketplaces. Primarily focused on vintage items, online sellers can use the platform to sell a wide range of products, such as jewelry, clothing, furniture, art, etc.
Are online sellers in Florida required to obtain a business license to sell on Etsy? Read on to find out.
Do I Need a Business License to Sell on Etsy Florida? – The EssentialsĀ
In terms of seller policies, Etsy has no regulations requiring sellers in different states to obtain a business license exclusively to sell on their platform. Conversely, the answer is not that simple.
Florida residents who want to sell goods on Etsy must identify whether the activity generates revenue and can be considered a business.Ā Ā
The Internal Revenue Service (IRS) considers any activity that generates profit in at least three of the latter five tax years as a business for tax purposes. Also, if the seller engaged on Etsy to profit with sales, the activity is a business.Ā Ā
Revenue generated by online sales of goods is taxable in Florida, which means the seller must collect the owed amount for taxes. Running an online business in Florida involves several licensing requirements, whether you decide to own an Etsy shop or an independent e-commerce website.
Which Type of Florida Licensing Do I Need to Sell on Etsy? – An OverviewĀ
Seller’s PermitĀ Ā
Also referred to as a “sales and use license” or “sales tax license,” a seller’s permit is a statewide permit that allows you to sell goods and services in Florida.
If you sell taxable goods, you need a seller’s permit. With this license, you can collect taxes on goods sold online and remit them to the state of Florida.
To apply for a sales tax license, you can either file Form DR-1 (Florida Business Tax Application ) online or download the forms, fill them out, and later submit them to the Florida Department of Revenue. Fortunately, no fee is required to register for this license.
General Business LicenseĀ Ā
While Etsy sellers are not exposed to a statewide requirement for a business license, they may be required to file for a general business license (or “business tax receipt”)Ā by local regulations.Ā
Depending on the seller’s location, he or she will need to apply for a general business license with the appropriate department in the city or county to conduct business on Etsy.
Zoning LicensesĀ Ā
Generally, most sellers on Etsy will likely operate from home. Zoning laws vary significantly across the state of Florida, as different cities and counties tend to apply specific regulations in their respective areas.
If you want to use your home in Florida as the business place for an Easy shop, check whether your city or county has specific zoning requirements for a home-based business.
Homeowner’s associations and condominiums may have guidelines for home-based businesses, which also affects Florida entrepreneurs selling goods on Etsy.
Do You Need Further Guidance on Florida Licensing Law? – Immediately Contact Jurado & Associates, P.A.Ā
A well-versed licensing attorney from Jurado & Associates, P.A. is willing to help your business succeed. Contact us today by calling (305) 921-0976 or emailing [email protected] to schedule a consultation.
