# Question about online sites



## PeaceB2U (Sep 5, 2008)

I have a question concerning selling homemade soap online.  Are there any kind of permits that must be purchased in order to sell soap at your site and ship it to customers?


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## Deda (Sep 5, 2008)

Mostly it will depend on where you live.  

More importantly, you will need insurance.  Your insurance will most likely require a business entity of some sort.

Almost all places require some sort of business license.  If you are selling from home you will probably need a home occupation permit.  Then a state tax ID.  If you are going to all that trouble get a FEIN, too.  


It's not really all that much trouble, just a little paperwork.


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## Tabitha (Sep 5, 2008)

I would call the tax collector  in your county & go in for a visit. They can have you fixed up in about 20 minutes. It's super easy!


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## PeaceB2U (Sep 5, 2008)

Deda said:
			
		

> Mostly it will depend on where you live.
> 
> More importantly, you will need insurance.  Your insurance will most likely require a business entity of some sort.
> 
> ...





I live in Ohio.

I wouldn't need a business license in my area just to operate.  I've actually been running my own design business for about 6 years now from my home. My business taxes are filed with my personal taxes.

I'm assuming you mention insurance for two reasons: to cover loss of equipment in a tragedy or for lawsuits.  Is this correct?

I just wondered if selling soap online was like selling candy where special health permits are needed.


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## Deda (Sep 5, 2008)

PeaceB2U said:
			
		

> I live in Ohio.
> 
> I wouldn't need a business license in my area just to operate.  I've actually been running my own design business for about 6 years now from my home. My business taxes are filed with my personal taxes.
> 
> ...



Everything is relative to your locale, I would take Tabs advice and make a call to your local tax office.

You _NEED_ insurance if you are going to sell soap or B&B. It's a liability issue.  Covers you if your product harms someone.

Where I live a home occupancy permit wouldn't be required for a web design business, but making soap is _manufacturing_ - that changes everything.


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## Tabitha (Sep 6, 2008)

The US does not have special health permits for soap/cosmetic manufacturing like the food industry does. Most all other countries do.

My husband did point out to me about a month ago that our town has a list of industries that are not permitted w/i the city limits & soap making is on that list, along w/ a slaughter house & a few other things. Why I do not know. I don't make CP, I make cosmetics so it doe not effect me, I may still speak w/ the city council on that though.

I know for sure you will have to get a resell tax permit. Uncle Sam want you to charge sales tax on each every bar you sell starting w/ the first one.. If the sale is online & out of your personal state that sale is tax exempt though.


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## PeaceB2U (Sep 6, 2008)

Tabitha said:
			
		

> I know for sure you will have to get a resell tax permit. Uncle Sam want you to charge sales tax on each every bar you sell starting w/ the first one.. If the sale is online & out of your personal state that sale is tax exempt though.



Didn't think about sales tax.  Thanks for mentioning that.


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## Tabitha (Sep 6, 2008)

That permit will save you money too. You will not have to pay taxes on supplies you buy & will have access to wholesale only websites  .


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