Florida’s favorable business laws and low tax policies offer fertile soil for entrepreneurs to thrive. Entrepreneurs seeking to conduct any business activity involving taxes or fees in Florida will likely need to apply for a seller’s permit.
Do you know how to obtain a seller’s permit in Florida? Read on to find out.
Florida Seller’s Permit – Understanding the Concept
Also referred to as a “sales tax permit” or “sales and use tax permit,” a seller’s permit is a type of license used by business owners to collect taxes on goods and services. If a product or service is subject to taxes, the seller must obtain a sales tax permit.
Most businesses within state jurisdiction require a seller’s permit. If a business is involved in wholesale, retail sales, or product-repair services, it will likely require a seller’s permit in Florida.
Similarly, service providers and companies that rent or lease commercial properties must also apply for a sales tax permit. Please note that there is no separate permit for retailers, wholesalers, or service providers.
Are Temporary Vendors Required to Get a Seller’s Permit in Florida?
The state of Florida often hosts conventions and events that attract vendors from several states. In such cases, state law requires vendors to get a seller’s permit from the Florida Department of Revenue.
This rule applies to vendors at conventions, seasonal festivals, craft fairs, and other temporary events. The best approach for out-of-state vendors is to work with an expert legal advisor in Florida.
How to Obtain a Seller’s Permit in Florida – An Overview
Once a business entity receives a seller’s permit, it is responsible for collecting taxes on products and services and remitting the due amount to the state of Florida. If a company conducts business in multiple states, it will likely need more than one seller’s permit.
The first step to apply for a seller’s permit in Florida is to fill out the Florida Business Tax Application (DR-1). Applicants have two options, which are to file the application online or download the forms, fill them out, and submit them by mail or in person.
If you choose to submit the forms using the latter options, you can do it through a taxpayer service center or submit them directly to the Department of Revenue.
The information required in the application varies depending on which business structure was formed upon, what activities the company is engaged in, etc.
For instance, the owner of a sole proprietorship without employees must provide a Social Security number (SSN). Conversely, a corporate entity does not need to provide a SSN, but the business’s employer identification number (EIN).
Also, the permit often includes a state tax ID number. Please note that it cannot replace the EIN required by IRS for federal tax purposes.
The state of Florida charges no fees on applicants seeking a seller’s permit. Unlike other licenses and permits, a seller’s permit does not expire (unless it is not used for over a year). When a seller’s permit is canceled, a new permit is required before the business can resume operations in Florida.