Steps to Starting Your Business: Soap Saturdays
Hey folks! Sorry this post didn't get out yesterday. Now that you know of the wonderful opportunities that making your own soap can afford, let's talk about turning your creations into cash. These steps for beginning your business might seem like a little bit of a hassle, but once they are set in place, you are ready to start selling your soap as a legitimate business.
Registering Your Business With The DOR:
There are steps you need to take to legally sell your soap so that you can pay your state and county taxes. Registering your business with your department of revenue will give you a tax ID number. Your state's department of revenue can answer your questions regarding obtaining the tax ID number. Many state DOR's offer services online, so check to see if you may be able to obtain your Sales and Use Tax ID number online. They will send you a confirmation once the process is complete, and you will be issued a certificate of registration with your new account ID number. Once obtained, keep this number in a safe place, because you will be using it often. There might be a minimal one time fee to process your business registration with the DOR.
By having a tax ID number, you can:
- use your ID to buy ingredients at wholesale cost
- use your ID number to get into certain shows or markets
- be able to submit tax exemption on items you need to manufacture and sell the soaps
- sell in stores that require you to have a registered business
Registering Your Business Name:
This will ensure that your name is unique and available to use. I had to go to my county's register of deeds to do this. It required a one time fee, plus paying for the notary's signature (the notary was already in the office). But this was a simple step.
Registering Your Business With Your City:
Some cities also require you to register your business. They might have specifications for you if you are operating your business out of your home that you need to abide by. Check with your register of deeds and they can direct you to the proper office for registering with your city. There may be other requirements that you need to do in your state to get your business going, but once you have completed these steps, you are that much closer to getting your soap out into the world! Keep persevering to make your dream of a soap business turn into reality.
To read the other Soap Saturdays posts:
-The Beginning of a Soap Maker: Soap Saturdays
-Processes to Make Soap: Soap Saturdays
-Equipment (On Sunday): Soap Saturdays
-Fun Ingredients: Soap Saturdays
-Molds (On Sunday, Again…): Soap Saturdays
-Choosing a Recipe: Soap Saturdays
-Mixing Instructions: Soap Saturdays
-Record Keeping: Soap Saturdays
-The Soap is Made, Now What?: Soap Saturdays