Reside can be used for your immediate place where you are at and where you currently live (ex... i reside in the store... i reside in the united states.) But live only refers to the place where you actually live (ex i live in my house..... i live in the united states) If you were to say i live in the store it implys that the store is like your home

I think James did a nice job of explaining. they are similar and can be used interchangeably but NOT ALWAYS.

Often, not always, they are interchangeable; "reside" is more formal. There is a distinction when a person is visiting somewhere. Note that "reside" and "resident" are similar. So, if I go to Japan on a visit, I still reside in the United States, even though at the moment I am living in japan.