kat88 Posted January 25, 2008 Share Posted January 25, 2008 I am in Ohio and thinking of eventually expanding my candlemaking hobby to selling (homebased business only). Does anyone have any suggestions on whether I should start with a sole proprietorship? I know the differences between sole proprietorship, llc, etc. and have already researched insurance, state laws, etc. I only want this to be a small homebased business with retail/wholesale sales enough to support my love of this craft and maybe come close to break even point. Any tips/suggestions would be greatly appreciated. Quote Link to comment Share on other sites More sharing options...
KarenOH Posted January 26, 2008 Share Posted January 26, 2008 The only thing I did was get a vendors license. $25 thru your county office. Karen Quote Link to comment Share on other sites More sharing options...
southern.scents Posted January 26, 2008 Share Posted January 26, 2008 Not sure about Ohio but here in Mississippi, I talked with the state advisor and he said go ahead with the sole proprietorship for at least 2 years so you can establish your business. He said then you could go with LLC. He said that the sole propritorship cost nothing to start or end so its great to make sure your business will succeed but if it doesn't your not out all the money it takes to start an LLC. Quote Link to comment Share on other sites More sharing options...
islandgirl Posted January 26, 2008 Share Posted January 26, 2008 Talk to an accountant and see what s will work best for your business, and make sure your personal assets are covered. One of the biggest benefits of creating any type of legal entity as opposed to a sole proprietorship or general partnership is the liability protection. If someone (visitor, merchant, affiliate network, or whomever) sues your legal entity, you are not personally liable. However, if you are just operating as a sole proprietorship or general partnership they can potentially take all your personal assets (car, house, etc.)You can incorporate your business yourself by going to your states website.It cost me $125.00 to become and LLC ~ (disregarded entity). Quote Link to comment Share on other sites More sharing options...
asheebeans Posted January 26, 2008 Share Posted January 26, 2008 I am a sole proprietorship but am looking into LLC just for the reasons stated above. Quote Link to comment Share on other sites More sharing options...
kat88 Posted January 26, 2008 Author Share Posted January 26, 2008 Talk to an accountant and see what s will work best for your business, and make sure your personal assets are covered. One of the biggest benefits of creating any type of legal entity as opposed to a sole proprietorship or general partnership is the liability protection. If someone (visitor, merchant, affiliate network, or whomever) sues your legal entity, you are not personally liable. However, if you are just operating as a sole proprietorship or general partnership they can potentially take all your personal assets (car, house, etc.)You can incorporate your business yourself by going to your states website.It cost me $125.00 to become and LLC ~ (disregarded entity).Island Girl, Thank you for your concern and information. I do know that the LLC is better protection for personal assets but was concerned about extra start up costs. Although, in the long run, I realize it could definitely be worth it! What are the basic costs of maintaining an LLC such as renewals, filing fees, things of that nature, not the typical business expenses of s&h, taxes, etc., just the LLC? Thank you! Quote Link to comment Share on other sites More sharing options...
islandgirl Posted January 26, 2008 Share Posted January 26, 2008 As far as I know.. the LLC is not a tax paying entity. Profits, losses etc. flow directly through and are reported on the individual members tax returns. http://www.sos.state.oh.us/SOS/Forms/BusinessServices/533.pdfAbove is a link with the Ohio SOS information for you. Since I am not from Ohio, I am not sure how all of their procedures work..Maybe you can give them a call... ETS: No renewal fee's that I am aware of.. Quote Link to comment Share on other sites More sharing options...
kat88 Posted January 27, 2008 Author Share Posted January 27, 2008 As far as I know.. the LLC is not a tax paying entity. Profits, losses etc. flow directly through and are reported on the individual members tax returns. http://www.sos.state.oh.us/SOS/Forms/BusinessServices/533.pdfAbove is a link with the Ohio SOS information for you. Since I am not from Ohio, I am not sure how all of their procedures work..Maybe you can give them a call... ETS: No renewal fee's that I am aware of..Island Girl, thank you so much! My boyfriend & I are preparing to start an LLC for a totally different business in which we will be partners, however, when I eventually do the candle business, it will be on my own. We have done so much searching for forms and specific information on the LLC and never came across this link! And I'm usually able to find anything on the internet that I'm looking for, may take some weeding thru the usual junk, but eventually find it. Thanks a million! We were pretty sure we were going to use LegalZoom to prepare our LLC. But this has alot of the information & verbage for which we had been searching. You're awesome! Quote Link to comment Share on other sites More sharing options...
Fire and Ice Posted January 28, 2008 Share Posted January 28, 2008 Have you already purchased your foudational equipment for making a large amount of candles? Be sure to have some sort of a business plan written. Attend several shows and see where you'll stand with compition in your area. Buy and test some of their candles, This will give you an idea of where you are going to settle in when you debute to the public. Look around at shome of the shops and who is carrying candles and what brand. Watch the prices of your supplies and make sure you are able to survive the increases in price of wax, jars, F/O. Keep in mind that we are not in a good econemy right now and people are holding tight to their money. These are just a few things to keep in the forefront of your mind. Do the research and then decide. Fire Quote Link to comment Share on other sites More sharing options...
kat88 Posted January 29, 2008 Author Share Posted January 29, 2008 Have you already purchased your foudational equipment for making a large amount of candles? Be sure to have some sort of a business plan written. Attend several shows and see where you'll stand with compition in your area. Buy and test some of their candles, This will give you an idea of where you are going to settle in when you debute to the public.Look around at shome of the shops and who is carrying candles and what brand. Watch the prices of your supplies and make sure you are able to survive the increases in price of wax, jars, F/O.Keep in mind that we are not in a good econemy right now and people are holding tight to their money.These are just a few things to keep in the forefront of your mind. Do the research and then decide.FireThank you! And yes, I do have everything I need to work large batches and have been purchasing candles along the way, comparing products and prices, have my business plan, etc. So, I guess I'm pretty well on my way but have no plans to start yet as I have other things to take care of such as more testing, filing business structure, etc.Thanks again. Quote Link to comment Share on other sites More sharing options...
kat88 Posted February 1, 2008 Author Share Posted February 1, 2008 I just wanted to say thank you to all of you that posted on this thread! All of you have been so helpful and it's great to know I have a place to get advice/tips from such good people! I've learned alot from your tips and advice! Quote Link to comment Share on other sites More sharing options...
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