Teach Soap

How do you register your companys name? Is it state or federal?

Hi, Linda,

I believe it would be state. Of course, making your business "legal" varies from state-to-state and county-to-county, so I would definitely check with your county office.

For me, I started the process by contacting my county's tax collector's office (they're the ones that collect fees for your car's tag registration, and your property taxes, etc.); they pointed me in the right direction.

The process will probably vary for you, but I went to my county's Department of Growth Management and got a Home Occupation Authorization (a permit for a home-based small business). I took that to my county's tax collector's office and got a business tax receipt, which basically says I have satisfied my local government's requirements to run a business. Next, I registered my fictitious business name (the name of my business) with my state's Division of Corporations (your county office should be able to tell you who to contact). Finally, I registered with my state's Department of Revenue and registered to collect sales tax. I file with them quarterly and turn in my collected sales tax and any use tax I owe (they also issue your resale certificate, which allows you to buy qualifying business items tax-exempt).

I know that's a lot of info, but hopefully it'll help road map things a bit for you. Registering a business name is a bit of a process.

Good luck!

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- Jenny -
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thank you for taking the time to explain all that to me. When my head stops spining from all that Id like to ask you what state your in?

Sorry, should have mentioned that ... I'm in Florida.

Yes, it is a little head-spinning, but it's not so bad, especially if you're a sole proprietor. It seems like a lot, and it was overwhelming to me at times, but I just kept taking baby steps. I tried not to think about everything that needed to be done; I just thought about what I needed to do that day or that week. Things fall into place.

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- Jenny -
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Have you seen this page:

http://www.paopen4business.state.pa.us/ ... iness/7176

Looks like it might have helpful info for you! Good luck!

you could also check out . they do this stuff for you, though they're a bit pricy. worse comes to worse, they may have some information that may help you.

good luck!

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~Shell

It does vary from state to state. The process I used in CA was VERY different than the one jrose729 used in FL. Try checking with your nearest SBA office, or with your local licensing authority.

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thanks folks for all your help

Oh, Linda, I also meant to recommend a couple of books, if you're thinking of becoming a small business:

"Soapmaking for Fun and Profit" by Maria Given Nerius (1999, could use an update but still good info)

and

"The Crafts Business Answer Book: Starting, Marketing, and Managing a Homebased Art, Crafts, or Design Business" by Barbara Brabec (revised in 2006)

These helped remove some of the mystique for me, and gave me a bit of a heads-up for things to consider and look out for. I like that these are specifically geared toward soap and crafts, too.

And ditto what Magic Hands said -- each state has their own thing going on when it comes to starting up a business. It can be vastly different from state-to-state. I just wanted to give you some idea based on my experience what it's like.

I'd pick a county office that sounds like it has something to do with business start-ups and start asking questions. They'll probably be able to tell you which office to go to, and that office will tell you where to go next, and so on. It's daunting at first, but things really do start falling into place once you get the ball rolling.

Good luck!

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thank you so much for the book referals.

Hi Linda! I'm from Pennsylvania also and just went through all of the business registration stuff last month. How daunting! It really wasn't as complicated as I suspected. I logged onto https://www.paopenforbusinessobri.state.pa.us (sorry - don't know how to set up a link yet!). It guides you through exactly what you need with an online questionaire. You can actually register online. I was afraid to register online, but I took the plunge and finished in about 15 minutes. Quite simple, really. So much easier than I thought it would be! I was registering to use a ficticious name (Buttermilk Hill Primitives), which sounds like what you want to do. The fee to register your ficticious name is $70.00. You can pay right online when you register or print out a form and mail your payment. I also got my tax ID number immediately and they then sent the license through the mail. I'm not sure exactly what your business is. I am making and selling candles and other crafts from home using ebay, craft shows, and hopefully my own website soon. The only expense I had was the $70.00 to register my ficticious name. I know my county (Venango) also wants me to have a business license which is $25.00, but I haven't sold at any consignment stores or craft shows yet, so I'm kind of letting that slide for now. You go to the court house for that. (I only got know that information because a local consignment shop told me they require the business license to set up there.) They also provide you with information regarding collecting sales tax. I have to submit mine quarterly. (You must submit, even if you don't have any sales.) I actually submitted online for October. Again, intimidating the first time but I dove in and it was really quite simple. As I go along, I'm finding that things aren't nearly as complicated as I expect them to be. I quit waiting for someone to do it for me (wishful thinking:) and grabbed the bull by the horns. If I can do it, I'm sure you can too! Good luck and let me know if you have any more questions. I might be able to help. Maybe we can muddle through being new entreprenaurs together!

what a sweet heart you are to take the time to tell me all that great info. Actualy I got my insurance first.

That's funny because I have yet to get my insurance:) Do you have any recommendations? Are the rates high? I've heard that in PA Bench Mark is the place to go, but that may be because I need insurance for my candle business.

if your a small business ( under 5000.00 ) dollars a year you could try RLI@ Home Business Insurance. Chris Alexander was very helpful and answered all my questions. Cost me 148.00 a year. That included product liability, craft shows , and you never know when someone will slip on a bar of soap and want to sue you for it.
If your bigger than that you mght want to join the soapers guild. Membership includes insurance Or so Im told.

I agree with Linda on the insurance stuff. RLI is a good way to go if you're small or just starting out: https://www.insuremyhomebiz.com/index.asp. Rates are about $150-$235, depending on how much liability coverage you want (and I specifically asked if that included both general/personal and product liability and was told yes).

The catch with RLI's in-home business policy is that you have to make less than $5K/year. Once you surpass that amount, you'd have to look elsewhere. In that case, I'd look into the Handcrafted Soapmaker's Guild: http://www.soapguild.org/home/membership.php

Don't know if there are any candle exclusions with RLI, and I read that you have to have soap somewhere in your product line to get the Soapmaker's Guild membership.

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