Stephanie Iken, Attorney at Law

What You Need to Know Before the Table Goes Up

Selling merchandise is one of the most reliable ways for musicians to make money. Shirts, stickers, vinyl, patches, posters, and handmade items have the potential to bring in more than the show itself.

But once money changes hands for physical goods, you are no longer just performing as a musician. You are operating a small retail business, even if it is casual, temporary, or run out of a tote bag.

If you sell merch in Pensacola, Gulf Breeze, Pensacola Beach, or nearby areas, here are the rules you should understand.

Selling Merchandise Is Different From Collecting Tips

Tips are voluntary donations, whereas merchandise sales are retail transactions. That difference triggers tax and permitting rules that do not apply to busking or performance alone.

If you sell physical items, even occasionally, you are generally expected to:

• Register to collect sales tax
• Remit sales tax to the state
• Comply with local venue or event rules

Many musicians skip this step early on. That does not make it correct, and it can create problems later.

Florida Sales Tax Basics for Musicians

Florida requires sales tax to be collected on most tangible personal property, including:

• T-shirts
• Stickers
• CDs and vinyl
• Posters and prints
• Pins, patches, and accessories

Digital downloads are treated differently, but physical items sold in person almost always trigger sales tax.

To sell merch legally, you typically need to register with the Florida Department of Revenue for a Sales and Use Tax Certificate.

Florida Department of Revenue
https://floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx

Once registered, you are responsible for:

• Collecting the correct sales tax rate
• Filing returns on time
• Remitting the tax collected

Sales tax applies even if your profit margin is small or the sales feel informal.

Do You Need a Business License or LLC?

An LLC is not required to sell merchandise. Many musicians operate as sole proprietors.

That said, you may need:

• A Florida sales tax registration
• A local business tax receipt, depending on location and frequency of sales
• Event or vendor approval if selling at festivals or markets

Local requirements can vary by city and county.

Venue Rules Matter More Than You Think

Even if state law allows you to sell merchandise, venues control what happens inside their space.

Common venue requirements include:

• Advance approval to sell merch
• Restrictions on table placement
• Venue merchandise cuts or percentages
• Limits on who can staff the merch table

Always ask the venue:

• Whether merch sales are allowed
• Whether the venue takes a percentage
• Where tables can be placed
• Whether outside vendors are restricted

Get these answers before the show.

Selling Merchandise in Pensacola

The City of Pensacola does not have a single merch-specific ordinance for musicians, but general business, solicitation, and public space rules still apply.

If you are selling merch on public property or in connection with a public event, additional rules may apply.

City of Pensacola Code of Ordinances
https://www.cityofpensacola.com/416/Code-of-Ordinances

Downtown events, festivals, and markets often have separate vendor rules managed by the event organizer or the Pensacola Downtown Improvement Board.

Escambia County and Outdoor Events

If you are selling merchandise outside city limits, including unincorporated areas of Escambia County, county rules may apply.

Outdoor events, larger gatherings, or setups involving tents or tables may require:

• Event approval
• Vendor registration
• Coordination with event organizers

Escambia County information on permits and public events is available here:
https://myescambia.com/open-government

Beach and Tourist Area Considerations

Selling merchandise on Pensacola Beach or Santa Rosa Island adds another layer of regulation.

Public conduct rules, beach safety regulations, and vendor restrictions can affect where and how merchandise can be sold.

Pensacola Beach rules and guidance:
https://myescambia.com/pensacola-beach/beach-laws

Do not assume that what works downtown works on the beach.

Best Practices for Musicians Selling Merch Locally

• Register for Florida sales tax before selling
• Track sales and keep basic records
• Bring a simple price list
• Have a plan for cash and electronic payments
• Clarify venue merch rules in advance
• Avoid selling on public property without permission
• Treat merch sales as part of your business, not an afterthought

Common Mistakes Musicians Make

• Assuming small sales do not matter
• Ignoring sales tax obligations
• Selling merch without venue approval
• Mixing band money with personal funds
• Waiting until a problem arises to get organized

These issues are fixable early. They become harder later.

Final Thought

Merchandise sales can support tours, recordings, and creative independence. A little planning keeps that income from turning into a legal headache.

If you sell merch regularly or plan to expand, it is worth setting things up correctly from the start.

This post is for general informational purposes only and is not legal advice. Laws and local ordinances change, and enforcement can vary by location and circumstance. If you have questions about your specific situation, consider consulting a licensed attorney familiar with local regulations.