How to Open a Pawn Shop or Secondhand Store in Florida

Florida does not issue a general business license, so the license or registration you need depends on what your store actually does. A pawn shop that makes loans secured by items a customer leaves as collateral is regulated as a pawnbroker and needs a pawnbroker license from the Florida Department of Agriculture and Consumer Services (FDACS). A store that buys and resells used goods, including gold buying shops, registers as a secondhand dealer with the Florida Department of Revenue (DOR). A thrift store that sells donated merchandise is a retail business, and whether the secondhand dealer rules reach it depends on how it takes in its goods.

This guide walks through the sequence to follow when opening one of these businesses in Florida. Expect the process to take longer than planned, and confirm current fees and processing times on each agency's page before you sign a lease or buy inventory.

Informational content only: This article is general information about Florida business formation and licensing. It is not legal or tax advice. Pawn and secondhand dealer rules are detailed and change over time. Talk with a Florida attorney and a CPA before you choose a business structure, a location, or a lending model.

Step 0: Decide Which Business Model You Are Opening

Settle the model first. It determines your license path, your record-keeping duties, and your start-up cost.

• Pawnbroker (pawn shop): You make loans against personal property that the customer leaves with you as security. Pawnbroker rules are in chapter 539 of the Florida Statutes, and you need an FDACS pawnbroker license.
• Secondhand dealer: You buy used goods from the public and resell them, which includes gold buying and general resale. These dealers fall under chapter 538 and register with DOR on form DR-1S.
• Thrift store: You sell donated or used goods at retail. Sales tax obligations are clear, but whether chapter 538 also applies depends on how you acquire goods and how the statute defines a secondhand dealer. Get DOR's answer in writing before you open.

Pawnbrokers register as sales tax dealers, but they do not register as secondhand dealers. If you plan to pawn and also buy goods outright, ask FDACS and DOR how each activity is treated before you open. Do not assume one registration covers both.

Materials and Documents You Need

Gather these before you file anything. Most delays come from missing paperwork rather than from the agencies themselves.

• A business name that is available on the Sunbiz records and ends in an accepted suffix, such as LLC
• Articles of Organization for a Florida LLC, or Articles of Incorporation for a Florida profit corporation
• A registered agent with a physical Florida street address (a P.O. box will not work), who must sign to accept the appointment
• A federal Employer Identification Number (EIN) from the IRS
• A signed lease or purchase agreement for a specific location, since FDACS and DOR license and register by location
• A fictitious name registration if your store name differs from your legal entity name
• Government-issued photo ID, plus whatever fingerprinting and background screening FDACS and DOR require (confirm the current process with each agency)
• Veteran or military spouse documentation if you plan to claim the initial fee waiver described in Step 6 (confirm which documents qualify)
• A transaction logging system that can produce the records your license requires
• Working capital for inventory and loans, plus a reserve for fees, rent, and insurance during the licensing period

Fees at a Glance

Item	Agency	Cost	Notes
Florida LLC formation (Articles of Organization)	Sunbiz (Division of Corporations)	$100 ($125 total with the registered agent designation)	No expedited filing option
Florida corporation formation (Articles of Incorporation)	Sunbiz	$35 ($70 total with the registered agent designation)	C corporations pay the 5.5% Florida corporate income tax
Registered agent designation (LLC)	Sunbiz	$25	Same fee to change the agent later ($35 for a corporation)
LLC annual report	Sunbiz	$138.75	Due January 1 to May 1. A $400 late fee applies after May 1 (total $538.75)
Fictitious name registration	Sunbiz	$50 to register, $50 to renew	Valid for 5 years
Pawnbroker license	FDACS	$300 per year, per location	Initial fee waived for qualifying veterans and military spouses
Secondhand dealer registration (form DR-1S)	DOR	$6 per location, per license type	Includes a criminal history check
Sales and use tax dealer registration	DOR	Confirm on the DOR site	Required before you begin business if you sell taxable goods
Local Business Tax Receipt	Your city or county	Varies, confirm locally	Not every city or county levies one

Step-by-Step Instructions

Step 1: Form Your Legal Entity and Check Your Name

Start with a name search on the Sunbiz business name search. The name must be distinguishable from existing entities on the Department of State records. An LLC name must end with Limited Liability Company, LLC, or L.L.C. Do not treat a name as approved until you receive a filing acknowledgment.

File Articles of Organization through Sunbiz eFile and pay the $125 required fee, which covers the $100 filing fee and the $25 registered agent designation. Appoint a registered agent at the same time. The Division does not publish a guaranteed turnaround. It states that online filings are processed in the order received, and images of electronically filed documents post within 3 business days of processing. The Division offers no expedited service, but its walk-in office at 2415 N. Monroe Street, Suite 810, Tallahassee, is open Monday to Friday, 8am to 5pm, and most requests there are completed while you wait.

Choose the entity type with a CPA. An LLC classified as a partnership or disregarded entity generally does not file a Florida corporate income tax return, though a Florida Partnership Information Return is required if one or more owners is a corporation. An LLC taxed as a corporation for federal purposes pays the 5.5% Florida corporate income tax. Florida has no state franchise tax and no personal income tax.

Step 2: Get an EIN and Open a Separate Bank Account

Apply for an EIN from the IRS once your entity is formed. You will need it for bank accounts, payroll, and DOR registration. Open a business checking account in the entity's name and keep store cash, loan funds, and personal money strictly separate. Commingled funds make it hard to show your records are accurate during an audit or inspection.

Step 3: Register a Fictitious Name If Needed

If your storefront will trade under a name other than your LLC name, file a fictitious name registration with the Florida Department of State. It costs $50 to register and $50 to renew, and it is filed statewide, not with the county. A registration is valid for 5 years and expires on December 31 of the fifth year. Renewal is filed between July 1 and December 31 of the expiration year. The name must also be advertised at least once in a newspaper in the county of your principal place of business, though no proof of the advertisement is filed.

Step 4: Confirm Zoning and the Local Business Tax Receipt

Florida has no general statewide business license, but many Florida cities and counties levy a local Business Tax Receipt for the address where you operate. This is a tax under Chapter 205 of the Florida Statutes, not a competency license, and not every county or city levies it. Confirm the rate and the application with your city or county before you sign a lease.

Pawn shops and secondhand stores are often regulated by local zoning or ordinances that limit where they may operate. Ask the local planning or zoning office whether your address is permitted for this use. A location that fails zoning can cost you a deposit and months of delay, so resolve this before you commit.

Step 5: Register as a Sales and Use Tax Dealer

Businesses selling taxable goods must register as a sales and use tax dealer with DOR before beginning business. The state sales tax rate is 6%, and local surtaxes may apply on top of it, so confirm the rate for your county. Pawnbrokers register as sales tax dealers as well. Apply through the DOR sales tax registration page, and confirm the current fee and the filing schedule assigned to your account on the Florida Department of Revenue website.

Step 6: Apply for the License or Registration That Fits Your Model

If you are opening a pawn shop: Apply to FDACS for a pawnbroker license under chapter 539. The license costs $300 per year for each location. The initial fee is waived for qualifying veterans and military spouses, so confirm which documents qualify before you apply. Pawnbrokers do not register as secondhand dealers, so you do not file a DR-1S for pawn activity. Confirm with FDACS the application form, background screening requirements, and any requirements tied to your premises before you begin operations.

If you are opening a secondhand store: File form DR-1S with DOR under chapter 538. The registration costs $6 per location, per license type, and it requires a criminal history check. Because the fee is charged per license type, ask DOR whether a gold buying operation and a general resale operation at the same address count as separate license types.

Step 7: Set Up Transaction Records and Reporting

Both pawnbrokers and secondhand dealers must keep transaction records, and holding periods and reporting duties are a central part of compliance. Do not build your system around a number you read in a forum or an old blog post. Confirm the current holding period and the reporting method with FDACS for pawn transactions and with DOR for secondhand purchases, and put those answers in writing.

A workable log captures the date, a detailed item description, serial numbers where they exist, the amount paid or loaned, and the seller's identifying information. Tag every item with a unique number that matches your ledger, so you can locate, hold, and release it when required. Back up your records off-site, since you may need to produce them on short notice.

Step 8: Open and Calendar Your Renewals

Compliance does not end at opening day. Put these dates on your calendar:

• LLC annual report: Filed between January 1 and May 1 each year, for $138.75. A report received after May 1 carries a $400 late fee. Failure to file by the third Friday in September leads to administrative dissolution.
• Fictitious name renewal: Filed between July 1 and December 31 of the year your registration expires.
• FDACS pawnbroker license: Renews at $300 per year per location. Confirm the renewal date and process with FDACS.
• DR-1S secondhand registration: Confirm with DOR whether and how it renews.
• Sales tax returns: File on the schedule DOR assigns to your account.

Tips and Common Mistakes to Avoid

• Assuming a license covers every location. FDACS and DOR fees apply per location. A second store needs its own registrations.
• Opening before the paperwork clears. Do not accept inventory or make loans until your licenses and registrations are issued. Operating without them is the fastest way to lose the business.
• Treating a name as approved. Wait for the filing acknowledgment before you print signs, order cards, or sign a lease under the name.
• Skipping the local tax receipt check. Many owners assume a state filing is enough. Ask your city or county directly.
• Assuming a thrift store is automatically exempt. Get DOR's answer in writing about whether chapter 538 applies to how you acquire goods.
• Using the wrong registered agent. A P.O. box does not qualify, and an entity cannot serve as its own registered agent.
• Missing the May 1 annual report deadline. The late fee alone adds $400 to a $138.75 filing.
• Relying on memory for holding periods and reporting rules. Keep the current written guidance from each agency in your compliance binder.

Expected Results

If your entity, registrations, and licenses are approved, you may be able to operate a pawn shop or secondhand store that is registered with the state and set up to keep the records the rules require. A clean compliance file can make inspections and renewals easier to manage, and it can help you deal with banks, landlords, and local officials. These outcomes depend on how well you follow the rules, your location, and local market conditions, so no particular revenue or approval timeline can be promised.

Plan for the process to take several weeks or longer, and treat the agency processing times as variable until you confirm them directly.

Next Steps and Professional Help

Before you sign a lease or order inventory, schedule time with a Florida attorney who handles licensing and a CPA who understands pawn and secondhand businesses. A pawn operation carries lending, consumer protection, and tax questions that a general formation service will not answer for you. For planning and small business support, the Florida SBDC Network can help you think through the business plan before you file.

Keep this guide as a checklist, but verify every fee, deadline, and rule against the current agency source before you act on it.