Expert: Neecie - 4/12/2009

Question
Hello. I have been making soy candles for the past few years and just selling them to my friends and family. My one friend suggested selling them in small mom and pop shops. I was wondering if I would need a business liscense to do something like that?

Answer
Hi there,

I would think most states are similar when it comes to setting up businesses. The state is going to want some type of record of your business. Especially so for tax purposes as well. In my state, I had to go to the Secretary of State's office and file. I think at that time it was approx. $130 to file. When you start selling to gift shops, you're actually wholesaling your product. Being registered with your state, it also adds legitmacy to your business. When you are about to do this, you may want to consult with your tax person as to how best set up your business. Whether it be a LLC, Incorportation, etc.

Good luck!