What does it take to legally open an online general merchandise store in Orlando, FL?

Christina wrote: “My business is at home and online. When I make enough money I might rent a space for the business. I sell on Etsy and Facebook Marketplace, and I'm going to create my own website soon.”

Hi Christina, Customira is an exciting name to see on a new business in Orlando. Testing many cheap products quickly shows which ones sell, so winners can be reordered while duds get dropped. Everything starts with the Florida sales and use tax certificate of registration, the registration suppliers and market organizers will ask to see. Here is what we will cover: how to structure Customira, the tax IDs it needs, and the licenses that let you open in Orlando, then a quick recap.

Florida taxes general merchandise, so register for sales tax before you go further, which also gives you wholesale access through a resale certificate. Etsy and Facebook may collect tax on some orders, but your own website will put the duty on you, so set up checkout properly when it launches. Growing out of the house into rented space later is a normal path, and the same registration moves with you, though a new address needs to be updated. Keep home and business spending separate, because mixed receipts become a headache when the day comes to show a landlord your sales.

What Customira needs

1. Florida sales and use tax certificate of registration – You will be selling taxable goods, so register to collect sales tax before your first sale. It also lets you buy inventory for resale without paying tax on it.
2. LLC (limited liability company) – Forming an LLC puts a legal wall between the business and your personal assets. If a cheap phone charger you sold overheats and burns a customer's couch, an LLC keeps the lawsuit pointed at the store and not your house. Once profits grow, an LLC can elect S corporation tax treatment, which can lower self-employment tax; ask a tax adviser when the numbers justify it.
3. Florida fictitious name registration – If you operate as a sole proprietor, or under a name different from your LLC's exact legal name, registering "Customira" lets you use it on signs, invoices, and your business bank account.
4. EIN (federal tax ID number) – The federal tax ID number (EIN) identifies the business for taxes. You need it for an LLC, a business bank account, wholesale suppliers, and your first hire.
5. Business license – Most places require a local business license to operate, including home-based businesses. Check the rules where Customira will operate in Orlando, and ask about home occupation and zoning rules if you work from home. Home-based businesses often need a home occupation permit as well, which can limit customer visits, employees, and how much inventory you keep at home.

By the numbers: Banks, insurers, and tax forms will ask for your industry code. For an online general merchandise store it is NAICS 452319 (All Other General Merchandise Stores), 455219 under the 2022 update. That makes 5 items on your list.

Tip: Vet suppliers for safety certifications, especially for electronics and children's items, and keep that paperwork on file.

To recap: Customira in Orlando, FL needs a sales tax permit, an LLC, a DBA, an EIN, and a business license. With the paperwork done, the fun part begins: serving your first customers.

We can file your seller's permit and the other registrations for you: start here.