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Sales Tax

This topic contains 37 replies, has 1 voice, and was last updated by  Rachel parada 4 years, 5 months ago.

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    David Crabill

    You mean food stamps? I really don’t know.



    Still confused about income tax. How do you calculate if you just take cash or check only ?


    David Crabill

    End-of-year income tax is going to be based on gross sales, and probably as a self-employment tax. You just add up the total sales, remove your deductions, and your tax program should tell you what you owe. If you make enough money, you may have to submit estimated taxes quarterly.



    I know there are a limit on gross sales ($15,000) but how are those regulated?? Also, can some states change the regulations on gross sales?

    I’m doing a research project on the Cottage Food Law so i’m trying to piece together all the information. Do you know where I can find a list of all the states that have adopted the law?

    Thank you so much!


    David Crabill

    The limit isn’t actively regulated, but a health or ag dept could shut down an operation if it was clear that they were making too much. I’d say it’s more self-regulated, in that people know if they make more than $15K then they’re doing something illegal. That limitation is baked right into Florida’s law, so an amendment to the law would need to be passed for it to change.

    Each state with a law has their own version, and many states don’t call it a cottage food law. This site is going to be your best bet if you want an updated list of the states that allow some form of homemade food sales. I don’t know of any other updated list that exists. Please know that the map doesn’t necessarily show states that have laws; it shows states that allow people to sell homemade food in some form, and that form is usually defined by a law.



    You do need to collect sales tax on Prepared Food. You pay sales tax at the grocery store on items made there (subs, salads, etc) and sales tax when you go to a restaurant.



    I was told by my county that I need a Federal iD number/Employer Identification Number. Is this require regardless of the fact I will not be charging sales tax on my goods? I did not know that that was also required for a small cottage food operation. Also, would I register as a sole proprietor?


    David Crabill

    Often an EIN isn’t required for a company that doesn’t hire employees, but you might as well get one if your county is asking for it — it’s very easy and free. You can register as a sole proprietor when you apply for your business license, though some businesses opt for a corporation:



    Hi. From what I have read this page has been very helpful.
    I am starting a cookie company in Florida. From what I have read The Cottage Food Law is not permitted in Miami Dae county , but everywhere else in Florida it is?
    If I start selling more than 15k a year what should I do in order to keep things legal?
    Can you please let me know what permits I need and where I can tramit them since I am not a US citizen.
    Thank you very much for your time,


    David Crabill

    Mariana, Miami Dade is the only county I’ve heard that disallows cottage food operations, but there may be other counties that disallow them as well. Once you go over the $15K limit, you need to get a commercial license:

    Requirements vary based on where you live, but here’s some general info on getting the necessary permits:

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