Talk with others about the cottage food industry in California
Just want to chime in that having a seller’s permit will also allow you to purchase some items with tax exemption. Make sure to ask the places you purchase packagings and equipment from to see if they have something like that. A good place to keep costs down.
haha I appreciate the support ;)
I did actually create an LLC to remove personal liability, but if I find after a year that I don’t need it, I’ll switch to save money.
Next steps are getting FBN validated, then getting a federal EIN, business license, state EIN and then a seller’s permit… I think that covers everything, for now haha
Thank you again
Yes, indeed lots of paperwork to file…will drive you crazy, but you got this!!
Do you plan on having an employee? EIN numbers are generally used if you have employees. If you have no employees you won’t need an EIN.
If you’re just starting without employees (only you and family members) it’s best to start as a sole proprietor and use your own…[Read more]
Yes, great call on the sellers permit. I kind of assumed I’d need that anyway. I looked into it and it appears you need both a federal EIN and state EIN first, and the state EIN requires a business license with the city to obtain one. So many legalities! haha Thanks again
You’re welcome. Yes, the same knowledge applies for class B as well, which is the permit I use to have. It will also be nice for you to be able to buy supplies wholesale with the sellers permit. Good luck with your business :) Take care!
Thank you so much for your thorough reply- your explanation provides clarity and makes total sense. I will be applying for my Cottage B license, but even so, the same logic still applies. I will go ahead and get a seller’s permit anyway, as I believe my county requires it as well. Thank you again and take care.
If you are only selling direct to consumers (cottage food operation class A) and your product is served at room temperate (baked good, nuts, chocolate, etc) and no one is eating on site as in like a restaurant space, then you don’t need to charge sales tax. So no sales tax for online orders, delivery, pickup, or farmer’s…[Read more]
Does anyone understand the necessity/ circumstances for when a sales permit is needed, and when we charge sales tax? I’m seeking to understand whether we are selling direct to consumer (fulfilling online orders, doing delivery and pickup) and events like farmer’s markets, if we have to include sales tax in our pricing. If so, how do we…[Read more]
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