Crusez09 Posted February 24, 2015 Share Posted February 24, 2015 Hello all, im a start up vender in california, i have about ten machines of diffrent sorts and just got one placed. yes! (Strating from scratch and a low budget). so in california regeristing a buisness as a llc comes with a hefty MINIMUM 800 tax. on the other hand a sole properitship comes with many liabilty concerns. (as can be read through out these forums). just wanted to see what the californians are doing when they just start out. i know theres special insurance we can get and was alos wandering if anybody had any experience with these companys. thanks in advance Link to comment Share on other sites More sharing options...
orsd Posted February 26, 2015 Share Posted February 26, 2015 insurance is about it.. wherein cali? Link to comment Share on other sites More sharing options...
moondog Posted February 27, 2015 Share Posted February 27, 2015 Hello all, im a start up vender in california, i have about ten machines of diffrent sorts and just got one placed. yes! (Strating from scratch and a low budget). so in california regeristing a buisness as a llc comes with a hefty MINIMUM 800 tax. on the other hand a sole properitship comes with many liabilty concerns. (as can be read through out these forums). just wanted to see what the californians are doing when they just start out. i know theres special insurance we can get and was alos wandering if anybody had any experience with these companys. thanks in advance I run as a sole proprietor and also have my resale tax license. About the only other thing you need would be liability insurance which runs a little under $30 a month through State Farm. Link to comment Share on other sites More sharing options...
Crusez09 Posted March 2, 2015 Author Share Posted March 2, 2015 im in sacramneto, whats the resale tax license for? dont we already pay tax on the produt when we buy it for our machines? Link to comment Share on other sites More sharing options...
orsd Posted March 3, 2015 Share Posted March 3, 2015 im in sacramneto, whats the resale tax license for? dont we already pay tax on the produt when we buy it for our machines? you dont pay tax when you buy, the consumer should pay when they buy but since these machines go to 5 cent increments only we just include it in the price. So we post signs saying all sales tax included, dont say we pay the tax becuase with option 1 we pay tax on like 60 something cents for a .75 vend, but if we pay on the price of .75 we pay just that bit more which add s up over time Link to comment Share on other sites More sharing options...
moondog Posted March 3, 2015 Share Posted March 3, 2015 im in sacramneto, whats the resale tax license for? dont we already pay tax on the produt when we buy it for our machines? With a resale tax license, you don't pay tax on Sodas or drinks at the register. Sam's and Costco are both set up to recognize tax exempt customers. Food items are not taxable so we're only dealing with the sales tax on sodas. It gets very sticky to pay tax at the register as you are still liable for the full tax on your sales price. For example, if you pay 27 cents per soda without a tax license, you'll pay sales tax on 27 cents. But you're still liable for the sales tax on the 75 cent sales price. You need to get that license if you're going to do business in this state. Link to comment Share on other sites More sharing options...
Crusez09 Posted March 3, 2015 Author Share Posted March 3, 2015 hmm. makin sense. but do online vendors also reconigze this license? like amazon? Oetc? and is ths tax seperate from the tax we get on our gross profits as well? thanks for your replies too, they are the answers ive been looking for Link to comment Share on other sites More sharing options...
orsd Posted March 3, 2015 Share Posted March 3, 2015 100 percent determined by th vendor Yes the tax is seperate not he sala price it's sales tax But the othe rid I come tax after expenses Link to comment Share on other sites More sharing options...
Crusez09 Posted March 3, 2015 Author Share Posted March 3, 2015 dang. ok i looked online it says we dont have to pay to get this license? i may have been reading the wrong section. or do we have to pay. and then we get it and present it to vendors we want there products. they dont charge us sale tax. then at tax time we get charged tax on our product that we recorded that we didnt pay tax on when we bought it. it seems kinda hard to come up with profits with all these taxes and fees.. so what if we buy say gumballs and pay tax on them. then do we not have to pay tax on that specific gumball bundle we already paid on.? Link to comment Share on other sites More sharing options...
SunShine Vending Posted March 4, 2015 Share Posted March 4, 2015 Just so I'm understanding correctly, in order to start this vending machine deal, I will need 3 things: 1) Resale Tax License 2) Liability Insurance 3) Equipment Am I missing something? Don't I need some sort of business license? I'm just so confused and getting more and more confused as I search for more information! I'm in Southern California near Los Angeles. Link to comment Share on other sites More sharing options...
moondog Posted March 4, 2015 Share Posted March 4, 2015 Just so I'm understanding correctly, in order to start this vending machine deal, I will need 3 things: 1) Resale Tax License 2) Liability Insurance 3) Equipment Am I missing something? Don't I need some sort of business license? I'm just so confused and getting more and more confused as I search for more information! I'm in Southern California near Los Angeles. Some cities will require a business license - they only catch up with you after you file your first resale tax return. Link to comment Share on other sites More sharing options...
Pyrodude Posted March 4, 2015 Share Posted March 4, 2015 You dont necessarily need to have liability insurance as a "must have" when you start - there is no law that mandates you have it. Liability insurance generally just protects the assets that you already have. One of the reasons to set up a LLC or separate company (and pay your $800 min. tax for the privledge of doing business in Kalifornia) is so that if you are sued, the separate company is whats gets sued, not you and your personal wealth. You can also protect your personal or separate company assets with liability insurance. If you dont have a lot of assets that can be taken away then you dont really need to have liability insurance. I guess it just boils down to how many layers of protection you want from the vultures lawyers. Some accounts may require you to carry liability insurance as well. Link to comment Share on other sites More sharing options...
orsd Posted March 5, 2015 Share Posted March 5, 2015 40 a month indsurace or 800 a year llc You pick Link to comment Share on other sites More sharing options...
Crusez09 Posted March 5, 2015 Author Share Posted March 5, 2015 Just so I'm understanding correctly, in order to start this vending machine deal, I will need 3 things: 1) Resale Tax License 2) Liability Insurance 3) Equipment Am I missing something? Don't I need some sort of business license? I'm just so confused and getting more and more confused as I search for more information! I'm in Southern California near Los Angeles. dont forget a buisness license. you will want to look into the llc and sole properiter options closely. also i have a question i got a buisness license off legal zoom for sacramento county. does that cover all cities in sacramento? or would i have to get a license for each sub city like orangeval,citrus heights, fair oaks which are all located in sacramento county. (i can never find straight answers on the web or state sites for this kind of information), Link to comment Share on other sites More sharing options...
Pyrodude Posted March 6, 2015 Share Posted March 6, 2015 dont forget a buisness license. you will want to look into the llc and sole properiter options closely. also i have a question i got a buisness license off legal zoom for sacramento county. does that cover all cities in sacramento? or would i have to get a license for each sub city like orangeval,citrus heights, fair oaks which are all located in sacramento county. (i can never find straight answers on the web or state sites for this kind of information), It most likely depends on the specific city and if that city is incorporated or not. For example I believe that Orangevale and Fair Oaks are not incorporated cities so the Sac county license would work there while Citrus Heights, Folsom, and Rancho Cordova are all incorporated cities so you would probably need their license. Its all about the money - they want their cut of the action. Link to comment Share on other sites More sharing options...
Crusez09 Posted March 7, 2015 Author Share Posted March 7, 2015 wow great info ill just try to operate in those locations i guess. Link to comment Share on other sites More sharing options...
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