Starting a(n) Food Truck Business Licenses & Tax IDs

Hi, I'm richard e williams 48089 We sale food on a truck. A different menu every day: chicken, steak, hamburgers, hot dogs, sausages. We sell side dishes. Corn on cob, green beans, mac and cheese.

A: Hi Richard, in Warren being a Food Truck requires licensing. Food Truck prepares food and prepared food is taxable when it is sold..., richard e williams.

Food Truck

Answer:

Hi William, we can help you register for our Food Service in Lomita, CA, 90717.
Note that nonprofit requires a nonprofit corporation and bylaws as well as a tax exemption.
First,
thing to do is the entity tax structure selection. There are 4 main types of tax entity business structures, namely, sole proprietor, LLC , Partnership or Corporation.

You need to select one because you will be taxed as the entity type you select and also, the rest of the documents, such as the seller's permit, will be registered under the entity you chose.

That said, keep in mind, you cannot be the sole proprietor and file a seller's permit as an LLC unless you obtain an LLC certificate.
In your case, since you showed an interest that you prefer an LLC , then form an LLC .

Second,
Because Food Service is subject to sales tax, you will need to obtain a seller’s permit. So, for example, if you sell Food at $5, you need to charge tax. If the tax is 10%, then you need to charge the client $5.50 for the food.

Third,
Furthermore, note that all businesses need to obtain a business license.

Finally,
If you hire food waitresses and other personnel, you will need to obtain a federal and state EIN as well, so you can pay federal and state withholding employment taxes.

REQUIRED LLC LIMITED LIABILITY DOCUMENTS AND LICENSES
LLC Refers to the Legal Company Structure
The Food Service legal structure is selected during business registration. If you choose to be an LLC , you do not need to file a Doing Business As (DBA) Certificate. About 60% of new businesses select an LLC when choosing a corporate structure. For example, if you are the Food Service sole owner, you can file a DBA and so select the sole proprietorship structure or select the LLC structure to be a corporate entity because LLC afford corporate protections such as business and personal liability protections.

Thus, when starting a business whether an online, home, store, concession stand or a mobile cart, you will need to first select among sole owner/proprietor, partnership, LLC or corporation, all of which also require a General Food Service Business License (not a specific license to your type of business, necessarily but a requirement for LLC companies as well as necessary) for any business as well.

If you decide to be a sole proprietorship instead of a Food Service LLC , and the trade name is a business name other than your full personal legal name, you will need to file a Doing Business As (DBA) Certificate. For instance, if your name is John Doe, and you do business as Best Food Service Items By John, the name must be registered with a DBA Biz Name document is called a DBA certificate because Best Items By John is not your full legal name.

Also, note that whatever item that you sell or lease, and it is an item that can be touched (i.e., tangible items such as equipment, toys, merchandise, electronics, prepared food) requires a state sales tax ID (Sellers Permit) to either buy or sell the items or wholesale and sell them in retail. If you or your LLC are hiring workers within the next 30 days, you will need a Federal EIN and a State EIN (employer identification number).

Even if you treat the LLC as a disregarded entity, you can use your social security to conduct business, it is not recommended. Other instances that you will need a federal tax ID: if you are a partnership, an independent contractor, and a corporation or an LLC treated as a corporation. You can also obtain a federal tax ID as the sole proprietor and use it as a business tax ID in place of a social security number.

However, all Food Service businesses need at least 2-5 business registrations, so you will still need other registrations, such as licenses, an assumed business name DBA, and tax IDs as described above. Finally, even one person, sole owner/proprietors working from home or just online can form an LLC or incorporate, in which case, they will not need to file a DBA, and they will be members of the LLC .

We sale food on a truck. A different menu every day: chicken, steak, hamburgers, hot dogs, sausages. We sell side dishes. Corn on cob, green beans, mac and cheese.

A: Hi Richard, in Warren being a Food Truck requires licensing. Food Truck prepares food and prepared food is taxable when it is sold, so it requires that you collect sales tax and that requires that you hold a seller's permit. In addition, because as a Food Truck, you are an independent contractor as opposed to an employee, you need an EIN because your clients need to report you as an independent contractor using your EIN as your business ID.

If you decide to form an LLC , you will need an LLC certificate and an operating agreement, which both come with a flat LLC set up price on our site. If you take the quiz, you can get $30 off your LLC filing price. When you form your LLC , your assumed trade name "Richs Food truck," will also be registered with the LLC registration.

Also, note that all Food Truck businesses need a business license and since you are an LLC , you will also need an EIN. Furthermore, LLC that are employers need a federal EIN and a state EIN.

Food Truck REQUIRED LLC LIMITED LIABILITY DOCUMENTS AND LICENSES
LLC Refers to the Legal Company Structure
The legal structure is selected during Food Truck business registration. If you choose to be an LLC , you do not need to file a Doing Business As (DBA) Certificate . About 60% of new businesses select an LLC when choosing a corporate structure. For example, if you are a sole owner, you can file a DBA and so select the sole proprietorship structure or select the LLC structure to be a corporate entity because LLC s afford corporate protections such as business and personal liability protections. Thus, when starting a business whether an online, home, store, concession stand or a mobile cart, you will need to first select among sole owner/proprietor, partnership, LLC or corporation, all of which also require a General Business License (not a specific license to your type of business, necessarily but a requirement for LLC companies as well as for any business) b) as well. If you decide to be a sole proprietorship instead of an LLC , and trade name is a business name other than your full personal legal name, you will need to file a Doing Business As (DBA) Certificate . For instance, your name is John Doe, and you do business as Best Food Truck By John, the name must be registered with a DBA Biz Name document called a DBA certificate because Best Food Truck By John, is not your full legal name. Also, note that whatever item that you sell or lease and it is an item that can be touched (i.e., tangible such as Food Truck prepared food such as a hamburger, equipment, toys, merchandise, electronics, prepared food) requires a state sales tax ID ( Sellers Permit ) to either buy or sell the items or products wholesale and or sell them retail. If you or your LLC are hiring workers within the next 30 days, you will need a Food Truck Federal EIN and a State EIN (employer identification number). Even though if you treat the LLC as a disregarded entity, you can use your social security to conduct business, it is not recommended. Other instances that you will need a federal tax ID are: if you are a partnership, an independent contractor, and a corporation or an LLC treated as a Food Truck corporation. You can also obtain a federal tax ID as a sole proprietor and use it as a business tax ID in the place of a social security number. However, all businesses need at least 2-5 business registration so you will still need other registrations, such as licenses, an assumed business name DBA, and tax IDs as described above. Finally, even one person, sole owner/proprietors working from home or just online can form a LLC or incorporate, in which case, they will not need to file a DBA and they will be members of the LLC .

1. SELECT LLC, DBA, CORP

From sole propr., MI LLC, MI partneship or MI Corp.: Each requires an entity certificate filing.

2. TAX IDs - PERMITS

All Catering Services businesses/entities need a business license and an EIN.

3. MI STATE SALES TAX ID.

Selling/Buying wholesale or retail requires a MI seller's permit.

✔ Biz Structure

You can choose to be a(n) :

Sole Proprietor,
LLC,
Corporation or
Partnership.
After you decide and select your business entity, you need licensing.

✔ Biz License

Warren Business Tax Registration ( Business License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.

✔ DBA Biz Name

A(n) business doing business under an assumed business name in Macomb County i.e. you are a business with a trade name other than the owner's legal (full name) name are required to get a(n) assumed business name certificate. E.g. you venture into a(n) business and you give it a trade name such as "Excellence & Associates". You will need to register an assumed business name certificate.

✔ Seller Permit

In addition note that in MI you may also need a seller's permit if you sell merchandise that is taxable. (A.K.A state id, wholesale, resale, reseller certificate, about $39 for most states).
Seller's Permit

✔ Federal EIN

Note: All businesses need a federal tax ID number except sole proprietors that are not employers and are not independent contractors.
An independent contractor is a self employed business person that receives more than $600 per year from anyone of his or her clients.
IRS rule: The client must issue a 1099 form to the independent contractor and the independent contractor must have a federal tax ID. However, even sole owners may obtain a federal ID and use it as a business tax ID instead of using their own social security number as a business tax ID number.
However, all other licenses that apply to sole proprietors as discussed here are requited regardless of getting a federal tax ID number.

✔ State EIN

In addition you will need a federal and a state EIN if you will hire employees. I.e., a MI Federal Tax Id Number ($29) and a(n) MI State Employer Tax Number

✔ L L C

Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in Warren, Incorporate in MI or form a(n) MI LLC .

You have a choice to file a DBA or form an LLC or incorporate. There is a cicrcumstance that you may not need to register a trade name and that is when you use your full name as a business name if you use your full legal name as a trade name.
Also note that even using your first and last name may not help you avoid filing a DBA if the name has a suffix such as "& sons" etc.

✔ Incorporation

If you do form an Catering Services llc or incorporate (about $49 plus state fees for most states) your business instead of just filing a fictitious business name (dba), that insurs that you don't have personal liability for debts and civile liabililty arising from your business dealings and you will not have to record the Warren business name. Instead of just registering your Macomb County assumed business name (our fee includes assumed business name registration and legal newspaper publication) you can choose to setup a corporation in MI or form an MI LLC (starts @ $49 plus state fee for most states & includes required documents such as bylaws for the corporation and Limited Liability operating agreement for the LLC). .


48089 MI Food Truck MI Warren