Many small business owners sell candles from home. Do you need a business license to do this? You’ll need a license if you sell candles in a store, vendor show, or flea market.
This article explores the various licenses you may need to sell candles and what the process entails.
Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your candle business. Let’s explore three.
Sales Tax Permit
A sales tax permit is a license that allows you to collect sales tax from your customers. This tax is then paid to the state in which your business operates.
If you plan on selling candles in most states, you need a sales tax permit to collect and remit sales tax to the state. To get this permit, you will fill out an application and submit it to your state revenue department. Once approved, you will be issued a sales tax permit number that you need to include invoices and receipts.
Tax Resale Certificate
You may also need to get a tax resale certificate for your candle business, which allows you to purchase candles without paying sales tax. To get this certificate, you will need to submit an application to your state’s revenue department. Once approved, you will be issued a tax resale certificate number that you will need to provide to your suppliers.
General Business License
If you plan to sell candles online, you must obtain a general business license. This license is required in most states and allows you to conduct business there.
To get a general license, you must submit an application to your state’s revenue department. Once approved, you will be issued a business license number that you will need to include on all invoices and receipts.
Additional Requirements
You must also register your candle business as a legal entity with the state where you plan to do business. Then, you can simply file an online form through your Secretary of State’s website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website if you plan to hire employees.
Secure the Appropriate Business Licenses
In most cases, you need a sales tax permit or general business license for a candle business. You may also need a tax resale certificate if you purchase candles without paying sales tax. You will also need to register your candle business. Ensure that you obtain the correct licenses and permits to continue running your business.