In Florida, a wholesale license or wholesale permit is officially referred to as the Florida Annual Resale Certificate for Sales Tax. This wholesale and resale license allows businesses to purchase goods tax-free for resale. It works in conjunction with a Florida sales tax license (officially the Certificate of Registration), which is required for businesses to collect and remit sales tax. These two documents together enable businesses to operate tax-compliantly in Florida.
Any business operating in Florida that sells taxable goods or services typically needs a Florida sales tax license (sometimes called a seller’s permit). Additionally, businesses intending to purchase goods for resale need the Florida annual resale certificate for sales tax (wholesale license) to avoid paying sales tax on such purchases. This includes brick-and-mortar retailers, online sellers, and businesses participating in conferences and trade shows within the state. Compliance with these requirements ensures tax accountability and operational efficiency.
To apply for a wholesale license, you’ll need detailed information about your business, such as:
Gathering these materials in advance will streamline your application process.
Obtaining a Florida wholesale license is straightforward if you follow these steps:
The first step is to decide on a business structure, such as a sole proprietorship, partnership, LLC, or corporation. Your choice will affect how your business is taxed and your personal liability. Take time to evaluate the structure that best fits your business goals and long-term plans.
Once you’ve decided on a structure, register your business with the Florida Department of State Division of Corporations. This step establishes your business as a legal entity. If you plan to operate under a name different from your legal business name, you must also register that fictitious name with the state. Additionally, depending on your location, you may need to apply for a local business license.
Next, apply for an EIN through the IRS. This number functions as a Social Security Number for your business, allowing you to file taxes, hire employees, and open business bank accounts. Applying for an EIN is free and can be completed online on the IRS website.
Register with the Florida Department of Revenue to obtain a Florida sales tax license, also known as the Certificate of Registration (Form DR-11). This license allows you to collect and remit sales tax on taxable goods and services sold in Florida. You can apply online or by submitting Form DR-1 to the Florida Department of Revenue.
Once you have your Florida sales tax license, apply for the annual resale certificate for sales tax (wholesale license). This certificate allows you to make tax-free purchases of goods intended for resale. It can be obtained through the Florida Department of Revenue’s website or via mail. Both the sales tax license and the annual resale certificate are essential for compliance with Florida’s tax laws.
After obtaining the necessary licenses and certificates, keep accurate records of all purchases and sales. This ensures compliance with Florida tax laws and makes tax filing easier.
While most vendors accept resale certificates and waive sales taxes, they are not legally obligated to do so. If a vendor charges sales tax, keep detailed purchase records. You can claim a sales tax credit when filing your returns. However, even if you pay sales tax to a vendor, you’re still responsible for collecting sales tax from your customers.
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.
Out-of-state businesses cannot use their resale certificates in Florida. Instead, they must obtain a Florida resale certificate to avoid paying sales taxes on purchases within the state. Keep in mind that having a Florida resale certificate also requires you to collect and remit sales tax on goods sold to Florida residents.
This is a critical point for those wondering, “Do you need a wholesale license to sell online?” If you sell to Florida customers, you’ll need to register and comply with the state’s tax laws.
The Florida sales tax license (Certificate of Registration) and the Florida wholesale license (Annual Resale Certificate for Sales Tax) serve distinct but complementary purposes.
The Florida sales tax license is issued to businesses that are required to collect and remit sales tax on taxable goods or services. It ensures compliance with Florida’s tax laws by enabling businesses to act as tax collection agents for the state. Any business making taxable sales must have this license to legally operate in Florida.
The Florida annual resale certificate, on the other hand, allows businesses to purchase goods tax-free when those goods are intended for resale. This certificate is specifically designed to prevent double taxation by exempting businesses from paying sales tax on items they resell to customers.
To put it simply, the sales tax license enables you to collect sales tax from customers, while the wholesaler’s license allows you to avoid paying sales tax to suppliers for goods you intend to resell. Both documents are essential for operating a tax-compliant business in Florida.
Partnering with wholesale distributors in Florida allows you to access a wide range of products at competitive prices. When working with Florida wholesalers, always verify that your resale certificate is valid and up to date to maximize tax savings.
If you’re ready to obtain your Florida wholesale license, don’t delay. This license is essential for avoiding unnecessary taxes, growing your business, and staying compliant with state regulations. Whether you’re just starting or expanding your operations, understanding how to apply for a wholesale license is a crucial step. Begin your application for your seller’s permit in Florida with FastFilings today!
