Shopify is an e-commerce platform used by entrepreneurs who want to run a digital business and sell goods online. The website allows sellers to set up their own online shop, connect with customers, and generate revenue with sales.Ā
Are you required to get a business license to sell on Shopify in Florida? Read on to find out.
Do I Need a Business License to Sell on Shopify in Florida? – The Verdict
When you sell on Shopify, you are generating revenue and transacting sales. In Florida, the income generated by sales of goods and services is taxable, which means your business operation is subject to different types of taxes.Ā
An e-commerce merchant is a business owner required to comply with all applicable licensing regulations in Florida. If you sell on Shopify and you generate profit with sales, you must apply for adequate licensing.Ā
Which Florida Licenses Do I Need to Sell on Shopify? – In Detail
Determining which licenses you need to sell on Shopify in Florida depends on whether you operate as a sole proprietor or as an entity, where you are located in the state, and which products you sell on the platform.
Seller’s Permit
Under Florida law, you must obtain a seller’s permit if you are engaged with activities associated with a tax or fee. Also referred to as a “sales and use tax permit,” you can file for this license with the Florida Department of Revenue.
Many business activities require a sales tax permit, including the sale of products or goods by mail order or internet. With a seller’s permit in hand, you can sell goods on Shopify, collect taxes on them, and remit the owed amount to the state.
General Business License
Florida does not require a statewide business license, but most cities and counties across the state do. If you want to sell goods on Shopify, you must check whether the city or county where you are located in Florida requires a general business license.
Licenses for Regulated Activities or Products
Depending on the type of products you sell on Shopify, you must apply for special licensing with the appropriate regulatory department in Florida.
For example, the Florida Department of Business and Professional Regulation (DBPR) is responsible for licensing alcoholic beverages within state jurisdiction. If a Florida resident owns a wine business on Shopify, it is fundamental to obtain a liquor license with the DBPR.
Federal Tax ID
If a company selling on Shopify has employees or files taxes separately from the owner, it must obtain an Employer Identification Number (EIN). This nine-digit number is used by the Internal Revenue Service (IRS) for tax identification purposes.Ā
Please note that sole proprietorships in Florida must only apply for an EIN if the entity has employees. Otherwise, the owner can file federal taxes using the Social Security number.
Waste no Time with Uncertainty – Contact an Expert Licensing Attorney at Jurado & Associates, P.A.
A well-versed attorney from Jurado and Associates, P.A. is willing to help you navigate the licensing process in Florida. Contact us by calling (305) 921-0976 or emailing [email protected] to schedule a consultation.Ā
