Legal Question About Selling Without Llc

Business By kikster Updated 10 Jul 2009 , 5:33pm by MichelleM77

kikster Cake Central Cake Decorator Profile
kikster Posted 9 Jul 2009 , 9:19pm
post #1 of 8

So I have found a kitchen to rent, and all I have to do is get a copy of their health permit, and my license is issued the same day. Then I have 21 days to complete my Food Safety course.

My question is, is it legal for me to at this point sell a cake? I will file for LLC, and my brother is who a business lawyer is helping me with all those forms, BUT I want to get a couple of paid cakes to help me pay the $350 dollar fee to file for the LLC.

Nerdy as it is, I really like to do things pretty straight as an arrow, and want to make sure from a legal standpoint, once I am licensed I can sell.

7 replies
FromScratch Cake Central Cake Decorator Profile
FromScratch Posted 9 Jul 2009 , 9:40pm
post #2 of 8

Have you registered your business with the state? You coud register as a sole prop and then convert to and LLC, but honestly that can be a pain and it's just more money. Unless you have state tax to deal with though, no one will kill you for operating without registering your business stright off. Is it 100% straight and narrow? No, but it's not a horrible infraction. So long as you are licensed with the HD, that is the most important part.

I'm the same as you and like to do things right from the get go, but I didn't register my business with the state from day one either... it was a month or two before that was all said and done. icon_smile.gif

sari66 Cake Central Cake Decorator Profile
sari66 Posted 9 Jul 2009 , 11:37pm
post #3 of 8

what fromscratch said is right as long as you have your license then you can sell legally.

MichelleM77 Cake Central Cake Decorator Profile
MichelleM77 Posted 9 Jul 2009 , 11:42pm
post #4 of 8

You don't even have to register to be a sole proprietor. If you don't register as an LLC, you are automatically "registered" as a SP in the eyes of the government. If you are an LLC you file separately, otherwise as a SP you add it in under your personal taxes.

Not sure how that isn't legal. Registering just means you filed your business name so no one else can use it in your state, not that you can't conduct business, right? As long as you don't have to charge sales taxes on your food (I don't).

Maybe this is a different rules for different states thing?

FromScratch Cake Central Cake Decorator Profile
FromScratch Posted 10 Jul 2009 , 12:36am
post #5 of 8

(In NH) If I was doing business as "Jeanne Kalman" I wouldn't have to register, but if I was doing business as "Jeanne Kalman Cakes" I would have to register because "Cakes" isn't part of my legal name. Until I register as "Jeanne Kalman Cakes" (even as a sole prop) I have no authority to conduct business as such. So yes... you do have to register even as a sole prop. There are yearly dues to keep registered as well.

I looked it up, and the rules are the same in Ohio (and I'm pretty sure this is the same across the board in all states) so you might want to look into registering with the Secretary of State. icon_smile.gif

http://www.sos.state.oh.us/SOS/FAQs_BS.aspx

MichelleM77 Cake Central Cake Decorator Profile
MichelleM77 Posted 10 Jul 2009 , 2:40am
post #6 of 8

From your link: "Sole Proprietorships are not required to register with the Secretary of State`s office."

Nope, I'm still good. icon_smile.gif I do plan on filing as an LLC soon though.

FromScratch Cake Central Cake Decorator Profile
FromScratch Posted 10 Jul 2009 , 4:42am
post #7 of 8

Oh Jesus... I didn't even see that. *insert donkey sound here*

I wonder though why it says anyone not conducting business under their legal name must register... do you operate under your name as a sole prop? I have no clue since I started out of the gate as an LLC. Sole prop wasn't an option (in my eyes) for me.

MichelleM77 Cake Central Cake Decorator Profile
MichelleM77 Posted 10 Jul 2009 , 5:33pm
post #8 of 8

No, no, no...no donkey sounds necessary. LOL! I think I misread it and should be registered. Will have to look into that. Sometimes it takes a different perspective, though I thought my biz person was my different (and legal) perspective.

Quote by @%username% on %date%

%body%