Help Please

Business By kbselig Updated 3 Dec 2006 , 6:03am by kbselig

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kbselig Posted 3 Dec 2006 , 5:33am
post #1 of 5

I passed my inspection Thurs. I'm now a legal home bakery. Now what? Do I need a tax ID #, sales tax #, ? I am getting advice to Inc. in Delaware or Nevada, but I live in PA, is this legal? Help! Kim

4 replies
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JoAnnB Posted 3 Dec 2006 , 5:46am
post #2 of 5

It is not necessary to incorporate. You can file taxes for your business with a Schedule C and a DBA. Your state MAY require sales tax, but most do not on food.

You just need a method you can use to track all your purchases and expenses, and you may want to purchase insurance for liability.

Good luck!

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Ladyofcake Posted 3 Dec 2006 , 5:51am
post #3 of 5

If you are thinking of incorporating, DE is the place to do it, but you do need an address. Companies do this in DE for tax purposes and because it is so much easier (my other career was paralegal before my daughter came along, LOL...)
As long as you have a valid address there, perfectly legal.
Look for an attorney that handles franchise tax and they will be able to help you. Very simple, straightforward process.

Here are some informative links for you:
http://www.corporate.com/should-i-incorporate.htm
https://www.delawareinc.com/more/why_delaware.cfm

Hope this helps icon_biggrin.gif

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Ladyofcake Posted 3 Dec 2006 , 5:56am
post #4 of 5

BTW, the address can just be a hole in the wall - you are perfectly fine operating out of state, heck, even out of the country. You'd be surprised how many do this...

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kbselig Posted 3 Dec 2006 , 6:03am
post #5 of 5

Thanks for the help, when I get a fed tax id # do I have to file any other papers or just pay the taxes? I want the tax id for buying wholesale icon_lol.gif , but I don't want to create major headaches, I do however want to inc. so that my business is a separate entity from my personal, I do not want to loose my house if I go under.

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