| Starting a(n) Business Licenses & Tax IDs |
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Hi, I'm Stacy Do I Need A California Sales Tax Permit
Flower Farm
FAQs - More...
I'm starting a cut flower farm to sell to wholesalers (groceries, florists) in PA. no, I grow them at my farm Do I get a sales tax ID or a wholesalers certificate?
Answer: Hi Stacy, You do Need A California Sales Tax Permit that comes with a wholesaler's certificate also..., Stacy. |
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I'm starting a cut flower farm to sell to wholesalers (groceries, florists) in PA. no, I grow them at my farm
Do I get a sales tax ID or a wholesalers certificate?
Answer: Hi Stacy, You do Need A California Sales Tax Permit that comes with a wholesaler's certificate also called a resale certificate. The sales tax ID is the same as a seller's permit. You need the sales tax ID because you will be selling wholesale and you need to keep track of your sales as well when you sell retail, you need to charge sales tax. Fees: the fees are $49 for most states, and yes, you need a business license. In fact, here is what Licensing you Need in . First you need the LLC certificate. Also, you can get your Resale License here online. Regardless of you sell clothing or other types of merchandise, licensing for you business require that you get a wholesale license AKA seller's permit and getting a business license because all businesses need these 2 filings plus more depending on your specific situation.
In your case, buying 5 items at $10 each wholesale saves you $4 because @ 8% sales tax, that is how much you save. Nevertheless, you still need to collect the 8% when selling the items.
Also, let's say you sell 10 items at $5 per item, total $50 plus $4 sales tax, you need to charge $54.
In addition, because you are using an assumed business name, also called a DBA (doing business as name) namely, "Sincerely Her Boutique," is required to be registered with a DBA doing business as certificate, an LLC or a corporation. |
You can choose to be a(n) Flower Farm :
- Sole Proprietor,
- LLC,
- Corporation or
- Partnership.
After you decide and select your business entity, you need licensing.
Waterford Business Tax Registration (
Business License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.
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A(n) Flower Farm business using a fictitious business name in
Stanislaus 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)
Flower Farm
business and you name it "Superior
Flower Farm
Group". You will need to file a fictitious business name for that name.
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In addition note that in
CA
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
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.
In addition you will need a federal and a state EIN if you will hire employees.
I.e., a CA Federal Tax Id Number ($29) and a(n) CA State Employer Tax Number
Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in
Waterford, Incorporate in CA or form a(n) CA 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.
If you do form an Home Based Business llc or incorporate (about $49 plus state fees for most states) your Flower Farm 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 Waterford business name.
Instead of just registering your Stanislaus County assumed business name (our fee includes assumed business name registration and legal newspaper publication) you can choose to setup a corporation in
CA or form an CA 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). .
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