I need some guidance - in Minnesota

[Sunny]

I may be interested in selling my soap WAY in the future. I know I have many batches (and mistakes) to make before I am ready to do that. I really don't want anyone to think I am another one of these, I made soap for two weeks, I think I'm ready to sell, type of people. I am not. I want to do it the right way, if at all.

If anyone is willing to share their knowledge, or even point out a resource for me, I would appreciate it so much. I have browsed this business forum but haven't found answers to my exact questions.

I live in Minnesota -

Do you need a tax id to sell your soap online or at a farmer's market or craft show? (on your own website, or on etsy, or the like)
or what do you need, besides insurance?

Do you need a tax id to buy liability insurance?

Is registering your business the same as getting a tax id number?



I feel like there is so much to do and to learn, I don't even know if this is something that I want to do yet, I just want to get an idea of what is involved because if I did it I would want to do it all legally and safely.

 

[Chay]

I would recommend going to your local library. There are books on owning and operating a small business without regard to a particular product, there are also books on selling soap. It might be a good place to start.

 

[jamisoaper]

As it happens, I'm also a librarian.

In Ohio, where I live, the Small Business Development Center is a GREAT resource. We have this place called the 1-stop business connection center, and you put in what you want to do, and answer the questions, and it generates the forms you need to fill out immediately.

The answers to your questions depend on whether you want to be a sole proprietorship or an LLC. I've decided on LLC because of the liability protection, since soap is something you kind of consume. But in either case, it's super easy to get a tax id number. The main thing you do is just register with the state.

Go to your library or check their website for small business information (or, if your library is small, the nearest big city library.) Or check the SBA site, and find your local chapter. There's all kinds of free advice out there for starting a small business.

If you have an accountant, they'll walk you through the forms too. But if you can get somebody from your local SBA or SCORE (service corps of retired executives), they'll do it for free.

Good luck!

 

[Sunny]

Thanks a lot for your reply! So far I have found a website for opening a business in MN as well as the Sec of State's website and I'm reading all I can - I just wanted to get an idea whether this is even for me. Lots of reading to do!
thanks!