Question

Evelyn-
In addition to what Alice indicated yesterday - If your business is internet based, it is almost a guarantee that you will be engaged in interstate commerce and this will take you out of the realm of "Cottage Food Law Provision” that exists in most states for home baked goods like you propose. There are tax regulations as well as some potential health regulations that might apply.

Remember the woman that baked the Mortgage Apple Cake? Those were shipped interstate. Sure it was only the one food item, but you can bet there was a lot of red tape to take that step!

Good luck, please post with your successes and let the SCORE community see how you progress.

Michael

Hi Evelyn-

Typically you must meet the local health regulations so contact your city hall and while you are there you will need to apply for a business license and perhaps be prepared to pay a business privilege tax quarterly. Plus there may be zoning rules to consider as well. Every town/city is different.

AND if you have not already you will need a Federal Employer Tax ID, even if it is a sole proprietorship business and a State Business ID as well - the good news is with those you will be able to buy wholesale AND deduce business expenses on your taxes.

Lastly remember you will need to collect and report applicable taxes to the State, so see the Ohio Department of Revenue website here:
http://www.tax.ohio.gov/channels/other/business.stm

Please let me know if there is more you need to know.
Alice, SCORE Pittsburgh