Valesra · CuppieCakes4You · Los Angeles, CA
Valesra told us: “I am a baker and currently bake cupcakes from home. I sell to family and friends.”
Hi Valesra, once cupcakes go beyond family and friends and you sell regularly, California expects a seller's permit for the taxable sales. Flour, sugar and ingredients that end up in the cupcakes can be bought with the resale certificate (Form CDTFA-230); boxes and tools you use up cannot. Home baking also falls under California's cottage food rules, so confirm the city's requirements. CuppieCakes4You needs a DBA.
Short answer: For a home cupcake bakery in Los Angeles, California, the essentials are the seller's permit, a federal tax ID number (EIN) and a local business license, plus an LLC or other structure.
In California, the seller's permit goes by the name seller's permit. When you buy inventory to resell, the paperwork is a resale certificate (Form CDTFA-230). California requires a seller's permit for sales of tangible goods, and the permit covers selling at wholesale or retail. A California resale certificate normally shows the buyer's seller's permit number; sellers accept it in good faith to skip tax.
Industry code: NAICS 311811 (Retail Bakeries)
Get your seller's permit filed · Start your LLC, DBA and EIN · Business licenses
Delectable Desserts By Maria · Wayne, NJ
The owner told us: “I want to sell my homemade Italian specialty desserts to local restaurants in Northern NJ. I want to purchase ingredients and packaging materials wholesale.”
Selling homemade desserts to restaurants means food rules come first. New Jersey generally requires a licensed commercial kitchen rather than a home one, so sort that out early. For tax, the Certificate of Authority applies, and you can use the Form ST-3 Resale Certificate for ingredients and packaging that become part of the dessert. Cleaning supplies and equipment don't qualify.
Short answer: In Wayne, New Jersey, businesses are required to obtain licensing before they start operating. For an Italian dessert wholesale business, that means the Certificate of Authority, a federal tax ID number (EIN) and a local business license, plus a structure and name registration.
New Jersey calls its seller's permit the Certificate of Authority. When you buy inventory to resell, the paperwork is a Form ST-3 Resale Certificate. Suppliers generally accept a resale certificate only from a buyer registered for sales tax, so even a business that mostly buys and sells wholesale usually registers. New Jersey's ST-3 resale certificate requires the buyer's New Jersey registration number for in-state buyers.
Industry code: NAICS 311812 (Commercial Bakeries)
Get your Certificate of Authority filed · Start your LLC, DBA and EIN · Business licenses
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All Businesses Need a Los Angeles Business License & a Trade Business Name ( Los Angeles County Trade Business Name required if using a trade name).
Retailers / Wholesalers, Need a Reseller Tax ID, & a Business License.
Employers Need a Federal Tax Id Number (EIN), a CA State Tax Id ( State EIN), & a Business License.
Corporations, & LLC Need a Federal Tax Id Number (EIN)& a Business License.
Partnerships Need a Federal Tax Id Number (EIN) & a Trade Business Name, but also need a Business License.
Sole Proprietors May Use a Federal Tax Id Number as a CA Business Tax ID but also need a Business License.
Instead of filing a Trade Business Name, You Can Incorporate in CA or form a(n) CA LLC & You Will Not Need To File A DBA
List of required licenses below include online as well as home or Amazon businesses.
1. Baking The majority of starting businesses need a(n) , Los Angeles business tax registration.
2. Baking Businesses with an trade firm name other than the owner's legal name are required to get a(n) Los Angeles County DBA assumed business name certificate.
3. In CA you may also need a sales tax ID AKA seller's permit if you sell merchandise that is taxable. ( A.K.A CAseller's permit, state id, wholesale, resale, reseller certificate).
4. You will need a federal and a state EIN if you will hire employees. I.e., a CA Federal Tax ID Number and a(n) CA State Employer Tax Number.
5. Instead of filing a fictitious business name DBA Filing in Los Angeles, Incorporate in CA or form a(n) LLC.