Christina Griffith

I tried asking this (as a sample chart of accounts) a couple of years ago, but never got any real responses. Since then, I have started using Wave Accounting and it has been VERY easy to use.

Here are my expense categories from Wave. Much of this is from the default categories initially provided by Wave, but some are categories I have added to…[Read more]

If you use a free accounting software like Wave Accounting, you can just use the default categories they have. But in general, I wouldn’t worry about it too much. When you add expenses, you can add new categories at that point if your existing categories don’t fit.

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!

This explanation is very helpful- thank you! Agreed that it’s best to check with the state/county as California always seems to be an outlier haha.
Again, I appreciate the detail you’ve provided. I’m making a bar, which I guess one could consider a “biscuit” (hopefully) and therefore not taxable. Thanks again!

Marlyn,
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.

Hi Jennifer,
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]

Don’t know about California – I’m in Florida, but the following may be helpful as some general guidelines to help you find the answers that would be specific to California.

Here, in Florida, most items sold under cottage-food law would NOT be taxable, but CANDY is ALWAYS taxable. Thus, bread, cookies, cakes, muffins, etc. would not be taxed but…[Read more]