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Sellers Permit in Los Angeles California
This topic contains 5 replies, has 2 voices, and was last updated by 
David Crabill 8 years, 5 months ago.
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Felix PabonDo I need a Seller Permit from Los Angeles California in order to sell a cottage food?
I believe it’s the state that issues seller permits, but I’m not sure if you need one. I know some counties require them, and fortunately they’re free. Even if your county doesn’t require them, a venue you sell at might require them. I know some CFOs get one just in case. The environmental health dept can tell you if they require thme.
I’m trying to piece together info from different threads and wanted to ask for some further explanation?
Seller’s Permit – They are free from the state, and I find myself running into events and farmer’s markets that require them. How does applying for one make a CFO responsible for taxes, though? Since food is non taxable, will we have to report earnings?
DBA – Why is this recommended to get as a CFO? Is it necessary for insurance? Does it cost money to get one?
LLC – From what I understand, it is not recommended to get for a CFO due to the financial strain it can put on the company. Is it necessary to obtain insurance, though?
I went from doing various direct sales over the last 6 months to now being overwhelmed with pop ups and event inquiries and I’m just trying to get all my ducks in a row and make sure I can continue to operate as a CFO or if it’s time to think about upgrading. Thank you!
Food is not necessarily non-taxable, especially at the county or city levels. Also, for events that charge an admission fee, I’ve heard that all food sold must be taxed. I’m not a tax expert, but I know that this stuff can be pretty complex and you should try to find someone in the govt who knows what they’re talking about.
You would want to get a DBA if you want to operate your business under a custom name. It does cost more, because typically you have to put an advertisement in a local paper for one month to notify the community of your business — a really archaic, unnecessary requirement, in my opinion. Alternatively, your business could simply be your first and last name, and you wouldn’t have to get a DBA.
I don’t think most small startups are in the position where an LLC makes sense. As you grow, it starts to make more sense, and you should seek legal advice for your situation. Insurance is not needed, unless an event requires it. Again, insurance becomes more important as you grow, because you have more to lose. If you haven’t read these already:
http://forrager.com/faq/#llc
http://forrager.com/faq/#insurance
DavidI reside within LA county and attempting to get my business license for my class B CFO. I visited my planning office and they charge $1000+ just to evaluate my plans and approve my location for a business permit. This was quite the surprise as it would take a small CFO a considerable amount of time to recoup those expenses. Do Class B CFO’s need a business license from their local city (90602)?
David, I can assure you that most (if not all) of the CFOs in LA County have not had to spend $1,000+ on a business license. You can ask your health dept if you need a business license, but regardless, a business license should be a fairly simple process that shouldn’t cost more than a couple hundred for a small business.
I just looked up Whittier’s info and see that a business license costs $10 and the home occupation permit costs $70. That sounds about right. The info you got from the planning division doesn’t sound right.
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