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Starting a(n) Business Licenses & Tax IDs

Hi, I'm 62477 Cotton Candy
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Just want to make cotton candy. Maybe BIRTHDAY parties. Maybe flea market. Already bagged up. Locally Were would I start and how can I obtain these?? Ok let do some reverse and I will get right back to you ok I'm starting a cottage food business, selling cotton candy. What do I..., .

Hi, I'm Permit Requirements Cotton Candy

FAQs - More...

, .

Just want to make cotton candy.  Maybe BIRTHDAY parties.  Maybe flea market. Already bagged up. Locally Were would I start and how can I obtain these?? Ok let do some reverse and I will get right back to you okI am starting a cottage food business, selling cotton candy. What do I need to get started. I know the Florida law about cottage food for agriculture.

Setting up your Cotton Candy business

First, check the Legal and Cotton Candy Tax Business Structure

To set up and register your business it does not matter whether your business is an online, home, store, concession stand or a mobile cart, you will have to first select a business type entity from these tax structures:

  Namely, from sole owner/proprietor, partnership, LLC or corporation.

It does not matter which Cotton Candy business entity you choose as far as a   General Business License   is concerned because all entities need a business license and that is because all businesses need, well, a business license.   (Note that that is not a specific license to your type of business it is a BUSINESS license) as well.

  Using a Cotton Candy company trade name subjects you to having to file a  DBA  . For instance, your name is Donald Tramp, and you do business as Best Items By Tramp, the Tramp name must be registered with a   DBA Doing Business As certificate   because it is not your full legal name (namely, Donald Tramp.

Also, note that whatever item that you sell or lease and it is an item that can be touched (i.e., tangible such as equipment, jewelry, merchandise, electronics, prepared food) requires a sales  ID (  Sellers Permit  ) to either buy or sell the items or products wholesale from companies that sell in bulk and or sell them retail directly to consumers. The sellers permit is also called a sales tax ID, a state ID (there are 2 state IDs and the other one is called an state employer ID but you most likely need the sales tax ID from the state ).

  Getting people to work for your Cotton Candy business anytime within 30 days of starting your business subjects you having to get a  Federal EIN   and a   State EIN   (employer identification number).

  On the other hand, you will also need a federal tax ID if you are a partnership, an independent contractor, and a corporation or an   LLC  .

It is always a good idea obtain a federal tax ID as a sole proprietor and use it as a business tax ID in the place of a social security number.

However, you will still need other filings business tax registrations, such as permits, a fictitious business name DBA, and tax IDs as described above. For example, if you want to be an LLC, you must obtain an LLC certificate and an LLC operating agreement as well as an EIN.

You need the EIN  to be the LLC ID in addition to being an Employer ID  if you hire workers.

  Finally, even Cotton Candy sole proprietor working from home or just online can set up a LLC or incorporate, in which case, they will not need to register the trade name with a DBA because the LLC or Corporation name will be the legal name of the business.

   A DBA stands for Doing Business As and it is also called a fictitious, assumed, trade firm or business certificate trade name.

✔ Biz Structure

You can choose to be a(n) Cotton Candy :

Sole Proprietor,
LLC,
Corporation or
Partnership.
After you decide and select your business entity, you need licensing.

✔ Biz License

West Union Business Tax Registration ( Business License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.

✔ DBA Biz Name

A(n) Cotton Candy business using a fictitious business name in Clark County i.e. you are a business with a trade name other than the owner's legal (full name) name are required to get a(n) fictitious business name. For instance you open a(n) Cotton Candy business and you name it "Superior Cotton Candy Group". You will need to file a fictitious business name for that name.

✔ Seller Permit

In addition note that in IL you may also need a seller's permit if you sell merchandise that is taxable. (A.K.A state id, wholesale, resale, reseller certificate, about $39 for most states).
Seller's Permit

✔ Federal EIN

Note: All businesses need a federal tax ID number except sole proprietors that are not employers and are not independent contractors.
An independent contractor is a self employed business person that receives more than $600 per year from anyone of his or her clients.
IRS rule: The client must issue a 1099 form to the independent contractor and the independent contractor must have a federal tax ID. However, even sole owners may obtain a federal ID and use it as a business tax ID instead of using their own social security number as a business tax ID number.
However, all other licenses that apply to sole proprietors as discussed here are requited regardless of getting a federal tax ID number.

✔ State EIN

In addition you will need a federal and a state EIN if you will hire employees. I.e., a IL Federal Tax Id Number ($29) and a(n) IL State Employer Tax Number

✔ L L C

Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in West Union, Incorporate in IL or form a(n) IL LLC .

You have a choice to file a DBA or form an LLC or incorporate. There is a cicrcumstance that you may not need to register a trade name and that is when you use your full name as a business name if you use your full legal name as a trade name.
Also note that even using your first and last name may not help you avoid filing a DBA if the name has a suffix such as "& sons" etc.

✔ Incorporation

If you do form an Non Profit llc or incorporate (about $49 plus state fees for most states) your Cotton Candy business instead of just filing a fictitious business name (dba), it will help you avoid personal liability from wrongs arising from your business dealings and you will not have to file the West Union business name. Instead of just registering your Clark County assumed business name (our fee includes assumed business name registration and legal newspaper publication) you can choose to setup a corporation in IL or form an IL LLC (starts @ $49 plus state fee for most states & includes required documents such as bylaws for the corporation and Limited Liability operating agreement for the LLC). .

Free Seller's Permit