# Business license?



## KigerKat (Sep 12, 2009)

I've only been making soaps for about 6 weeks, and I have only done melt and pour.  I've given away a lot of my soaps for people to try out, and I have gotten a lot of great feedback from them.  

Our neighborhood activities director and my husband both think that I should have a booth at our neighborhood fall festival in 5 weeks and try selling them.  I did agree to donate a basket of soaps for the silent auction, but with all of my great feedback I am starting to seriously consider this thought. 

I know I can't accept money for my soaps unless I have a business license and charge sales tax for them.  What is going to make my decision on weather or not I give this a go is how difficult it will be to do this.  If there are any Georgia soapers out there, I would love your advice!  Everyone else is welcome to chime in as well, I need all the help I can get!

I haven't named my soaps (I do have a couple of ideas), I don't know how much it costs to get a business license, I don't know if I have to get a sales tax i.d. on top of the license, or how long any of this takes - remember, this festival is 5 weeks away.  And then there is the question of insurance - how much would I need and where would I go to get it?  We have our home and cars insured through State Farm - would it be ideal for me to check with them?

I want to do this properly and not cut any corners.  If it doesn't seem feasible to do what needs to be done in 5 weeks, then I'm more than fine waiting until next year.

Thank you for your help!!


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## donniej (Sep 12, 2009)

I don't have a specific answer for you.... but if you go to your chamber of commerce or city hall, they should be able to tell you exactly what you need to do.  I have never heard of this costing "much" money.  I have a friend here in Philly who had some website do all the work for him and mail him his tax ID, etc.... he said it was $300 for everything together, including company seal.  I'm guessing for a proprietarship, especially away from a big city, it will be much, much less... especially if you do it yourself...


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## Bigmoose (Sep 13, 2009)

I live in MI so things could be very different by you but here is what I have.  Goto city hall to register your business, cost is little, $10 or $15 if I remember right.  You can check with state farm for insurance.  Some will cover you and some won't.  Around here they want about $600 a year for 1 mill. coverage.  RLI is a good place to get a starter policy.  They are $210 for a year but you can not sell over 5K in product.  Here is a link for them.  https://www.insuremyhomebiz.com/index.asp
As for sales tax go to your states website to register.  Here it is free, just a little bit of a headache.

Bruce


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## kwahlne (Sep 14, 2009)

In VA (Loudoun County, anyway), they don't even let you get a business license until you've sold $4001 or more in a calendar year.  At that point, it's about $35 and goes higher the higher your sales.  But you do need to register your business and apply for sales tax ID.

HSMG is a great place to get the insurance you need.  http://www.soapguild.org


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## Bnky (Sep 14, 2009)

State Farm would not cover me for home based business but I contacted RLI also, and it is just as Bruce said.  I myself would definitely get insurance and an LLC before selling anything, this will protect your personal property (home, cars, etc.).  I think to get an LLC is around $50.00 (check the secretary of state website in your area) and the insurance was $217 a year.  If you name your soap you may need to file for a ficticious name also with the secretary of state (should be just a small fee).  Check your municipality/county/city for home based business licensing to see if they require one and they will let you know about a tax ID number and anything else you may need (or they will direct you to someone else).  If you have an economic development center or a university extension where you live, they sometimes offer counceling for startup companies.  Good luck and congratulations!


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## donniej (Sep 14, 2009)

I just posted this also in the business forum...

http://www.soapmakingforum.com/forum/vi ... 100#123100

I shelled out the cash to have a company file all the paperwork for me.  It was $300 for them to do everything.  They also list on there website that they'll send you all the paperwork for ~$100.  Keep an eye on the post I linked above if you're interested in knowing how they do.


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## Bnky (Sep 14, 2009)

DonnieJ: That sounds easy enough.  I might have to look into that.  Will you get a tax ID number also?


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## donniej (Sep 14, 2009)

Bnky said:
			
		

> DonnieJ: That sounds easy enough.  I might have to look into that.  Will you get a tax ID number also?



Yes, State and Federal  8)


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