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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 117370
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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It would be a SOLE PROPRIETORSHIP so I wouldnt need an LLC....correct

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It would be a SOLE PROPRIETORSHIP so I wouldn't need an LLC....correct? I don't feel I would make tons of money doing this biz but is there a certain amt u need to profit before paying taxes and do I need to CHARGE TAX on cookies and baking items?
A sole proprietorship gives you no protection in case anyone were to sue you over anything, such as getting sick on a cookie, but you can use one. You must charge sales tax on anything you sell in commerce and having an EIN is much better. There is no certain amount you have to make before you start paying taxes, you must claim income tax on ALL income, even $1, as to whether you will pay taxes that depends on the rest of your income as well.

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Customer: replied 5 years ago.

So If I apply for an LLC it would be a corp?? and I wouldn't need to call my insurance co to find out how much insurance would be in the case that someone gets sick on a pizzelle?? I would automatically be covered for something like this??


Any idea how much it would cost to apply for LLC in state of NJ and would I be able to go to PA to work the shows too

No, it is an LLC, different than a corp. It is very similar to a sole proprietorship or an S corp, but it just gives you a protection from personal liability. You would still need to have the insurance for the LLC in case that bad pizzelle gets out there, but it means that nobody could sue you personally if did, just the LLC and any judgment against the LLC would not go against you personally or your credit report.

Yes, you could register in NJ and sell in PA sporadically. The filing fee for an LLC in NJ is about $125.
Customer: replied 5 years ago.

Would I call my homeowners insurance to get a quote on insurance needed?


Just bro has a food biz for 30 yrs....would I be able to use his Tax id# XXXXX I make the cookies,etc for his store when doing a food festival or craft show?

You always need to fill out forms online that require name of biz and tax id#...I guess I would have to advertise HIS name and not my biz name then.

Your local insurance agent is who you go through, but typically your homeowners is separate and they do not write these policies. If you use your brother's tax ID then you have to operate under his business name and not yours.
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