Permits, Licenses, insurance...oh my!

[statik27]

Hey guys,

Ok so I'm pretty new at this and I want to make sure that I go about setting up my route and business the right way. I tried to fish for information at my local city hall, but after the blank stare and shrug I recieved from the lady behind the counter I decided I'd ask someone who might know.

It seems that there are a variety of ways to go about conducting business, s-corp, llc, hope nothing bad happens etc. But I'd really like to get off on the right foot, so heres my questions and I realize it will be different from state to state...

So I need a DBA (ficticous business name), I know that. But do I need a standard business license, just as if I was setting up a store front, or do I need to just get each location a sellar's permit for the machine. Or do I need all three.

Thanx in advance for any answers,

statik

[nam]

statik27,

I saw your post yesterday and hoped someone from Calif. would give you an answer. We all may within reason have different requirements depending on where we live. So I could tell you what is required in Az. but likely to be different than what you need in Calif.. You should at min. file for a dba (fict. business name). The problem with that is someone can sue you personally and potentially cost you your home should a child injury themselves with your machine or candy. The LLC or Corp. will protect you from someone coming after you personally. I formed an LLC by gong through Legal Zoom or you can even buy kits to do it yourself. The LLC is simpler than the Corp.. No quarterly taxes have to be filed if the income from the LLC is handled as a pass through to you personally. The corp. has to have minutes of the meetings recorded, income tax filed seperately, just more hassel although can also have benefits. I choose an LLC for simplicity and protection against liability from whoever that should sue me. You should try reading as many other post in this section as well as doing some searching here in the forum. You'll most likely have to go to the dept of revenue in Calif. and get set up for paying taxes on the non-food items (stickers, toys, caps,etc.) as you'll probably have to pay sales tax on those but not the food. At least that is how it works here in Az. You may need licenses from County and City as well depending on their requirements. Better call and ask to be safe. These people are a pain because even in calling or going to their offices you get told different things from different people. Then if you do something wrong it won't just be the money you owe but the penalties and fines on top. Sales tax is the biggest pain. Especially doing business in mult. states! Hope your not on a border and want to cross state lines. If so, start with one at a time - that's bad enough.

nam