Unsure of the license/permit that I need

[LyndaG]

I have done quite a bit of searching, but unable to find the answer I need.

I was told that I could do a LLC or DBA, but when I look into buying supplies, they ask for a wholesale or resale permit/license number.

I contacted my state gov agency and explained what I make and asked what licenses or permits I would need, I was told none.

I want to have a name, other that my name, for the business, when I get to that point. However, I can see it taking at least 3-6 months or longer to make a quanity of products to sell. (I work 2 pt jobs)

I want to find wholesellers to buy my supplies, but not sure if I should just start the process of the actual business first. I don't see the point in having a business, if I'm not really going to do anything business related for selling for quite some time. I would be purchising supplies and making items, just not selling right away.

I'm looking to start at craft fairs and Etsy and eventually a small website. Some of the craft fairs that I have looked into require a tax ID number to sell.

Any help would be greatly apprechiated.

Lynda

 

[PrairieCraft]

If you haven't even purchased any supplies, can we assume you have not made anything yet? If not, you are getting a little (a lot, really) ahead of yourself.


Check out this post.

http://soapmakingforum.com/forum/viewtopic.php?t=17621

 

[LyndaG]

I have started making items, I have a wholesaler for my beading supplies, that does not require any type of license or permit.

However, looking into a few craft fairs, they want tax ID # and business name. Then I start looking for a supplier for the other crafts that I want to do and they too want the wholesale/resale permit/license number.

I called and spoke to someone about the license/permit in my state and they said that MN doesn't require either one.

So am I to assume that I don't need any type of license to make and sell crafts? Weither at a craft fair or Etsy or a small (free) website.

I'm trying to find the supplies that I need, at wholesale price. I can't continue to pay retail prices, then expect to make a profit. My mark up would be too much.

Then if I'm paying tax on my supplies, am I suposed to charge tax when I sell?

This is so confusing to me.

When my husband started his business, he filled out the LLC sent the check and got insurance, set up a checking and charge accounts and is so busy after one week that they have to sub jobs to other businesses.

All I want to do is order in bulk at a discount price, sell at craft fairs, eventually Etsy and so on. I want to start small, but after reading page after page on the gov website, it's talking about zoning, seperate insurance, no signs out side your house, no increase in traffic, that you can't keep inventory in your house, you should register with your city, that you should file a DBA if you aren't using your name. UGH

Sorry to sound crabby but my eyes are on fire after reading so much on this.

I talked to someone that said as long as you have a MN Tax ID, you don't need anything else. I'm assuming that I would need a Federal Tax ID as well.

Lynda

 

[AmyW]

I think we can help most if we know what kind of products you'll be making to sell. There are different regulations for everything.

If you've never made (or are new - less than a year into making) cold process soap before and want to sell that - please, please read this thread:
http://soapmakingforum.com/forum/viewtopic.php?t=17621 (ETA: duh, PrairieCraft linked it already... it's good to read though!)

It really depends on what you're selling though overall.

 

[Tabitha]

Make all the phone calls again & ask what you need to do to set up a smal business. Don't mention it's a craft or soap, etc. call your city, county then state.

 

[Tabitha]

Try this: http://www.positivelyminnesota.com/Busi ... ce_Office/

and this:
http://webcache.googleusercontent.com/s ... clnk&gl=us

 

[LyndaG]

I just read through the link and had some wonderful info on there. Some of which I had read on the gov pages of my state.

Right now I make jewelry and assories with beads, all types, necklaces, bracelets, earrings, hair clips, headbands, jean charms, decorate clothes, purses.

I have started to venture to other things such as dominos, scrabble tile necklace and pendents, using epoxy. Making resin charms and jewelry, bracelets, rings and such. Bottle cap necklaces.

I have also done rhinestones on cell phone cases and just recently added deco den and clay.

I bounce back and forth with all the above, depends on the mood I'm in when I sit down.

I am not a soap maker, tho I know this is a soap making forum. I'm here for the 'other' crafts section. But, I love looking at all the pics of the beautiful soap. I call it "soap art".

I have also made, not recently, bath fizzies or bombs, and bath salts. But, thoes were for my personal use and have not sold or even given away any that I made.

Lynda

 

[PrairieCraft]

Sorry, Lynda. I assumed you were a soaper. We would love to see some pics of your work. hint hint

 

[LyndaG]

Thank you for the links, I'll have to look at them. They are different than the ones I found. Hopfully I can find an answer, or at least a starting point.

If I don't tell them it's for a craft, then what should I say when I call.

So I should start making the calls in my town first?

Thank You,
Lynda

 

[LyndaG]

That's ok PrairieCraft, I take no offense. I had a feeling that would be confusing, since this is a soap making forum.

As for pics, well my camera has finally died, but as soon as I replace it, I will deffently post pics.

Lynda

 

[carebear]

in NJ, once you are registered as a business you get your Tax ID which is what you provide to the suppliers to go tax free on your purchase of supplies. You need to register as a business because the state recoups the taxes from your customers when you sell your finished goods.

 

[Toomey]

Laws, Permits and Regulations

What is frustrating is trying to grow your home based bussiness, while working another 40 hr/wk job, but being somewhat stuck because you can't legally diversify your products (other than soap) without an FDA permit (which means an inspectable facility to ensure good manufacturing practices). While I realize standards are important, how can you grow?????? The meantime while I'm trying to do everything I know to do (proper labeling etc), others will be at the same events selling products that I know fall under the cosmetic/drug definition and surely they are doing it from home just like me. What can you do??? The only resolution I can come up with is making soooo much soap to build routes in other stores (like the keebler cooking/snack guy) and eventually get to a point to rent a small building/warehouse to expand products?