Home Business To Llc?

Business By VNems Updated 18 Oct 2015 , 2:24am by oftheeicing

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VNems Posted 18 Oct 2015 , 1:08am
post #1 of 3

Hello all :) looking for some input regarding my home based cake business (in Ohio) and possibly becoming an LLC.

I did the research and confirmed that I do fall under the Cottage Food umbrella and am exempt from needing to be officially licensed or officially inspected. However, I was recently talking to someone who recommended becoming an LLC to protect my business name and of course of someone became sick and wanted to sue, which are both good reasons, obviously.  Has anyone done this while not being officially licensed as a home bakery? Is it worth the hassle if there is any? Does it open me up to inspection or other licensing fees?

I couldn't find answers to these questions online and hope you can help!  Thanks :)

2 replies
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costumeczar Posted 18 Oct 2015 , 2:10am
post #2 of 3

I don't know if you can register as an LLC without having a business license. My suspicion is that to be a registered LLC you need to have a business license and an EIN for the federal government, but I'm not sure how that works with the cottage food laws. You should probably call your local licensing authority that handles that cottage food stuff and ask them for a definitive answer.

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oftheeicing Posted 18 Oct 2015 , 2:24am
post #3 of 3

I established my fictitious name and LLC before obtaining my Dept. of Ag. Cert. and then finally applied for my township home business license.  I did have to file for an EIN number prior to establishing the LLC.  I am in PA and it was an easy process.  I am unfamiliar with Ohio law, and have no clue if it is allowed.  If an LLC is an option for you,  I woild recommend it. Knock on wood, I have never had an issue, but feel much better knowing that only my business is at stake and not my family's personal finances.

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