Cottage Food Law Question

Business By karenamr95 Updated 16 Sep 2015 , 2:53am by Happyfood

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karenamr95 Posted 2 Sep 2015 , 3:04am
post #1 of 11

I registered my LLC yesterday and today i was reading more about what i need in broward county.

When i filled it out onine it says federal tax id EIN is optional but than i read that every business is suppose to have it when you make your cottage food operation do you not put it into you personal bank account i am not working right now and i planned on putting into my bank account and just having a book where i keep track of income from the business.

Do i need Limited liability insurance with my llc registration?

and also saw i need a food handlers permit which i im going to do tomarrow since i can test online and get the certficate since it you need one in florida

but would i need a sellers permit now? from what i read it says you need a sellers permit to buy wholesale/sale and lease and i plan on going to resturant depot for supplies and eventually if i have money from this leasing somehwere.

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karenamr95 Posted 2 Sep 2015 , 3:15am
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I have been going off this which says

 i do not need any permit or licenses from  Florida Department of Agriculture and Consumer Services 

so I guess the most important questions would be the sellers permit and EIN thank you :)

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Norcalhiker Posted 2 Sep 2015 , 3:20am
post #3 of 11

The irs. lists the criteria for EIN on their website:

since business licensing and administration vary by state, if you are unsure, contact your state's Dept. of Agriculture to confirm. 

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-K8memphis Posted 2 Sep 2015 , 11:09am
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sometimes there is the option to use your social security number in lieu of the ein but someone in broward county needs to advise you -- you're an llc already? now you cannot write any of this off on your taxes as sole proprietor -- oh well 

i love your resilient industrious spirit 

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costumeczar Posted 2 Sep 2015 , 3:52pm
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It's good to get an EIN, you don't have to have one for everything but in case you do you'll have it. It's no big deal to get one, I think you might even be able to do it online these days. I'm a pass-through LLC, so I still use my SS# for income taxes, but i use the EIN to pay my state sales tax. And I hired my kids to work for me this summer and I think I needed it for that...also for wholesale account, sometimes they want you to have one but they usually just want your state sales tax ID or business license.

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karenamr95 Posted 2 Sep 2015 , 4:09pm
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ok but from what i read i dont have to pay state sales tax because it is food and we dont get taxed on food here

and i dont plan on hiring anyone 

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craftybanana2 Posted 2 Sep 2015 , 6:51pm
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Tax on food is something I did ask my county agriculture about. They said yes I would need to collect tax on it because it's considered "Prepared Food." You pay sales tax when you buy subs and burgers, and cakes fall under that according to them. I don't know how many people actually collect sales tax from it though. Might want to talk to the tax collector on that one for clarification though, it's kinda misleading in the wording. But if you pay sales tax when you buy a cake from Publix or your local bakery, you should prob get at tax ID. It's not hard to get one, you just fill out a form and send it in, I'm not sure if it even costs money.

Here's the tax id stuff:

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costumeczar Posted 2 Sep 2015 , 10:52pm
post #8 of 11

If you have to collect sales tax, you'd better do it...I did a video with a friend who used to be a sales tax auditor and she would bust people all the time. And then you have to pay fines and interest on top of the taxes they decide that you owe. It's not worth messing around with it!

It's the same thing in Virginia, the tax rate on wedding cakes is different than the tax rate on groceries because cakes sold in full (not by the slice) are considered to be part of a meal or something like that. It's very tricky the way they categorize things.

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Cakemom21 Posted 3 Sep 2015 , 11:45pm
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I live in So. Cal. and I am working on my CFO registration at the moment. I called the state to find out about the "tax" issue, and she said I did not have to charge tax. I would have to charge tax if I sell at an event that has a entrance fee. Also, if I deliver a wedding cake and actually cut and serve the cake, then I would have to get a tax id #. Apparently, if I stay and cut and serve the cake, then I am "catering" and that is different than just "selling" my cakes.

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craftybanana2 Posted 16 Sep 2015 , 2:21am
post #10 of 11

Hi :) I found this on taxes on another thread ( and it says that IF the food is packaged for consumption off the premises then you don't have to collect sales tax. So don't worry about getting a sales tax id, sorry for the previous mis-information, it's what my county agriculture guy told me. Here's the link to the FL departement of Revenue 2010 page (I hope it's still up to date) I would've pm'd you, but the message system isn't working right now.

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Happyfood Posted 16 Sep 2015 , 2:53am
post #11 of 11

It sounds like it might be worth it to spend an hour with a tax accountant.  They would have all the latest tax updates and can give you sound advice on what is best for your situation.

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