Do I need a license

[Sunkawakan]

I've been making soap for a while now for gifts, and have tried and trusted recipies.

I would like to start selling - I think, maybe.... Not a lot, mostly at craft shows, perhaps some online (maybe Etsy and/or ebay). Also, I've been approached by a few small botiques that would like to carry my soap in very small quantities (100 bars per year max). My top goal is to make no more than perhaps 2K/year profit but if I do much much less I'd be ok with that as well. I don't really want to sell soap as my primary source of income (not even close). I'm not looking to compete with any one.

To do the above on a very small scale as stated above do I need:
1. Insurance
2. A business license
3. A sales tax license
4. Do I have to report the income on my personal taxes?

I'm also emailing the Small Business Association, but would appreciate anyone's advice from here.

Thank you

 

[TheSoapyEwe]

I'd say yes to all of your questions

 

[donniej]

It depends on your state but in PA I believe the following to be true...

You only need to a business license if you are operating under a name other than your surname. So if your name is Jane Smith and you're selling "Smith's Soaps" then you wouldn't need the license.

You only need to report it on your taxes if you make more than XXX$ in sales.

For what it usually takes to register a business, it's usually worth it to not have to think of it again

 

[BluebirdMama]

I would say yes as well.. I know in our county I have to pay like $35.00 a year to have a license.