Posted By: steph323
Question related to usda license - 10/18/11 06:28 AM
If someone gets a usda license do they also need to get a business license?
Edit: from what I have found there would be no requirement to get a business license if 1. there are no "employees" 2. a sole proprietorship 3. uses owners name as company name 4. makes less than 10,000 annual profit ((but that may be for need to credit it to taxes))
does this appear correct to the people that are experienced in this area?
Posted By: GliderNursery
Re: Question related to usda license - 10/18/11 01:19 PM
Not sure, but I would think that varies by state. I don't have a "business license". The only license I would be required to have would be a vendor's license for the collection of sales tax. However, since my stuff is sold over the internet, right now I'm not required to have that either.
I do run Glider Nursery as a business, and submit all my income on my taxes. It is run as a sole proprietorship.
You should contact someone in your county to determine what is required there, they will also be able to tell you what state requirements are as well. What the county/state I live in may not do things the same as yours.
Posted By: ValkyrieMome
Re: Question related to usda license - 10/27/11 04:04 PM
Legally, for tax reasons, you want to get a business license.
The "business bank account" laws have changed. For most banks, you have to have a business license to open a business account.
Since you MUST keep your business money separate from your personal money - you pretty much need a business license. It also helps to have a business license under which you can file your business taxes. Any hint that your personal business and your personal life are not completely separate is inviting an IRS audit.
Posted By: steph323
Re: Question related to usda license - 10/27/11 05:12 PM
That makes sense, I'm keeping financial records ((general journal ect)) thankyou for the tip