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Starting a(n) Business Licenses & Tax IDs

Hi, I'm Justin What Licensing Is Needed To Sell At Fairs Chamoy Candy

I sell chamoy candy of all sorts currently selling to my area I do want to branch out to online sells soon

Good morning Justin! It's great to chat with you. Let's dive into your questions and get you on your way to starting your business. As the saying goes, "Success is not final..., Justin.

Good morning Justin, I'm happy to help you out with your business inquiries. Let's get started with answering your questions and make it fun along the way. Here's a quote to motivate you: "Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were." – David Rockefeller.

NAICS Code and Business Outlook

The NAICS code for your business would be 453998 - All Other Miscellaneous Store Retailers (except Tobacco Stores). You are going into a profitable business as the adult merchandise industry has an estimated revenue of $15 billion annually. With proper planning, strategy, and execution, your business has the potential to be successful.

Choosing an Ownership Structure and Licenses Required

It's great that you have already purchased your equipment and supplies. Since you are starting a new business, you will need to choose an ownership structure. You can either be a sole proprietor, a partnership, an LLC, or a corporation. Each structure has its advantages and disadvantages, so you will need to choose the one that best suits your business goals. As for licenses, you will need a General Business License, an assumed business name (DBA), a tax ID (EIN), and a sales tax permit. If you plan to sell your products at fairs or events, you will also need a temporary sales permit.

Funny Business Names

Choosing a business name is essential as it will represent your brand. Here are a few humorous suggestions that you might find entertaining: "Bare Essentials," "Love Shack Inc.," "Fantasy Island Emporium," or "Fifty Shades of Retail." Remember, choose a name that is unique and memorable to make your brand stand out.

Buying Items Wholesale and Sales Tax Rate

Buying your products wholesale will help you save on costs. Contact manufacturers and distributors directly or attend trade shows to make connections. The sales tax rate varies by state, so check with your state's tax agency to determine the rate in your area. In general, the sales tax rate ranges from 2% to 7%, with some states having no sales tax at all.

Approximate Pricing and Mark-up

Pricing your items is a crucial part of your business strategy. Consider your costs, including the wholesale price, shipping, and any other expenses, and factor in your desired profit margin. The average mark-up for retail items is around 50%. Depending on your location and competition, you can price your items higher or lower.

Cost of Starting a Business, Equipment, and Supplies

The cost of starting a business will depend on several factors, including the ownership structure you choose, the cost of equipment and supplies, and any legal and professional fees. As a general guideline, you should budget at least $10,000 to $50,000 for your startup costs. However, this can vary widely depending on your industry and location. Make sure to create a detailed business plan and budget to help you track your expenses.

Insurance and Marketing

Insurance is crucial for any business. You will need to protect your business assets and ensure that you are covered in case of any accidents or lawsuits. Talk to an insurance agent to get the right coverage for your business. As for marketing, consider using social media, email marketing, and search engine optimization to reach your target audience.

Chamoy candy is a type of Mexican candy that is typically sweet, spicy, and sour. The candy is usually made by coating a sweet and sour fruit candy with chamoy sauce, which is a type of sauce made from pickled fruit, salt, sugar, and chili powder.

Chamoy sauce is often used in Mexican cuisine as a condiment for fruit, snacks, and beverages. Chamoy candy can come in various forms, including lollipops, gummies, and hard candy. Some popular brands of chamoy candy include Lucas, Pelon Pelo Rico, and Vero. Chamoy candy is a beloved treat in Mexico and is gaining popularity in other countries as well.

I sell chamoy candy of all sorts currently selling to my area I do want to branch out to online sells soon

Good morning Justin! It's great to chat with you. Let's dive into your questions and get you on your way to starting your business. As the saying goes, "Success is not final; failure is not fatal: It is the courage to continue that counts." - Winston S. Churchill. NAICS Code and Business Outlook

Before we start, let me tell you that your business idea is fantastic! Your NAICS code is 453998 - All Other Miscellaneous Store Retailers (except Tobacco Stores). The outlook for the industry looks bright with an estimated growth rate of 4.4% annually, so you are on the right track. Keep up the good work!

Ownership Structure and Licenses

As you mentioned, you will need to choose an ownership structure and obtain certain licenses to start your business. You have the option to choose between sole owner/proprietor, partnership, LLC, or corporation. It's important to note that you will need a General Business License regardless of your chosen ownership structure. If you want to save money, you can consider filing an LLC as an S corp. This could potentially save you up to 20% on federal income tax. Additionally, if your trade name is different from your full legal name, you will need to file a DBA. Remember, whatever item you sell or lease and can be touched requires a state sales tax ID (Sellers Permit). If you plan on hiring workers, you will need a Federal EIN and a State EIN (employer identification number). If you are a partnership, independent contractor, corporation, or LLC, you will need a federal tax ID. As a sole proprietor, you can use your federal tax ID as your business tax ID. It's essential to have all these registrations, licenses, and tax IDs in place before starting your business.

Funny Business Names

You asked for some funny business names, and I am happy to oblige! How about "Adults Only Emporium," "The Love Shack," or "Naughty but Nice"? These are just a few suggestions, and I'm sure you'll come up with something creative and unique. Remember, the name of your business should be catchy and easy to remember.

Buying Merchandise Wholesale and Sales Tax Rate

When it comes to buying merchandise wholesale, you will need a reseller's permit. With this permit, you can purchase goods from suppliers without paying sales tax, and then charge sales tax when you sell the items to customers. Speaking of sales tax, the rate varies from state to state, so it's essential to check with your local tax authority. In your state, the sales tax rate is 6.5%. Make sure you add this tax to your prices when you sell your products.

Approximate Cost and Pricing

Now, let's talk about the approximate cost of starting your business. Assuming you will need to buy supplies, equipment, and inventory, the cost could range from $5,000 to $10,000. This estimate includes permits, licenses, insurance, marketing, and other startup costs. As for pricing, you should aim to have a markup of at least 50% on your items. For example, if an item costs you $10, you should sell it for at least $15. Of course, you can adjust your prices based on your market research and competition. You mentioned selling chamoy candy, so let's use that as an example. A bag of chamoy candy costs you $5, and you decide to sell it for $8.50 (a 70% markup).

✔ Biz Structure

You can choose to be a(n) Chamoy Candy :

Sole Proprietor,
LLC,
Corporation or
Partnership.
After you decide and select your business entity, you need licensing.

✔ Biz License

La Marque Business Tax Registration ( Business License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.

✔ DBA Biz Name

A(n) Chamoy Candy business doing business under an assumed business name in Galveston 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) assumed business name certificate. E.g. you venture into a(n) Chamoy Candy business and you give it a trade name such as "Excellence Chamoy Candy & Associates". You will need to register an assumed business name certificate.

✔ Seller Permit

In TX you need a resale ID ( AKA seller's permit) if you selling touchable items. (A.K.A state id, wholesale, resale, reseller certificate, about $39 for most states).
Seller's Permit

✔ Federal EIN

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.

✔ State EIN

In addition you will need a federal and a state EIN if you will hire employees. I.e., a TX Federal Tax Id Number ($29) and a(n) TX State Employer Tax Number

✔ L L C

Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in La Marque, Incorporate in TX or form a(n) TX LLC .

You have a choice to file a DBA or form an LLC or incorporate. If you will do business under your first and last legal name you will not need to get a fictitious business 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.

✔ Incorporation

If you do form an Home Based Business llc or incorporate (about $49 plus state fees for most states) your Chamoy Candy 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 La Marque business name. In lieu of recording a Galveston County trade company name (our filing service fee includes trade name registration and newspaper legal publication for 4 weeks) you can also form a corporation in TX or form an TX 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). .

Free Seller's Permit