Looking for info on starting a home based dog treat business in Massachusetts?
I am beginning to research starting a dog treat business in Massachusetts from my home. I have been trying to gather as much information as possible, but I need to know the legalities of starting this kind of business from my home kitchen. Does anyone have any knowledge on how to start this and know of any Massachusetts legal issues from doing it at home? Thanks.
If you’re looking to start the business, you do so by filing with the Massachusets Corporations Division of the Secretary of the Commonwealth if you want to form an LLC or corporation. LLCs are expensive in Mass and corporations have a lot of franchise tax. You could do it as a DBA to start which is a simple form at the county courthouses, unless your in Boston and it’s done at city hall. DBAs are like $50 in Boston. BUT you’ll still owe all the same person income taxes which are a lot in Mass either way: http://www.northwestregisteredagent.com/massachusetts-department-of-revenue.html
So if you’re making things that peoples dogs are going to eat, there’s a lot of liability that goes with that, ESPECIALLY operating out of a home… Forming an LLC to do it out of would limit your personal exposure if you make a bad batch and kill someones dog. $500 sounds cheap if something ever goes bad.
After you file the paperwork to file a dba or form an actual entity like a LLC or corporation, you’ll get official paperwork showing it, then you get an EIN with the IRS and then you register with the MASS department of revenue to collect and remit sales tax from your sales
As long as it is not for human consumption, there are no health code requirements. After all, you can buy old bones/scraps from the butcher that he can’t sell to humans. I’ve seen packages in the grocer marked "Scraps for Animal Consumption Only".
You do need to check out local by-laws regarding zoning as some communities do not allow running a home business (of any kind) from a residential neighborhood. This is, I believe, mostly in the more congested communities in or near Boston or Worcester.
You should go on IRS.gov and apply for an EIN (Employer Identification Number) since you don’t want to use your social security number (identity theft). It’s easy and doesn’t cost anything.
http://www.irs.gov/businesses/small/article/0,,id=98350,00.html
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
If you are going to sell retail, you will need to register with the state for Sales Tax. The state mandates filing and paying the tax online. You do this after you have "formed" your company; ie gotten the EIN if you are just a sole proprietor. Don’t bother forming an LLC quite yet as the Secretary of State requires LLC’s to file a "report" annually – with a $500 filing fee (ouch).
https://wfb.dor.state.ma.us/webfile/Business/Public/WebForms/Registration/Register.aspx
https://wfb.dor.state.ma.us/webfile/Business/Public/WebForms/Login/Login.aspx
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Drake may know his state, but you do NOT have to register with the county courthouse for a dba (sole proprietorship) in MA. In fact, the only reason you may need to "file" a dba is if you name the business something that doesn’t include your full name. So if you name it "Jane Smith’s Doggie Treats" there is no requirement to file. Registering a "dba" is only to give the authoritie’s a way of tracking you down if a consumer has a complaint – nothing more. And, in MA, you only have to file with the town the business is based in; not the county and certainly not the state.
And in MA, there are no "franchise taxes". Corporations pay income tax. IF the income tax is less than the state minimum excise tax, the amount due is the excise tax of $456; but you don’t pay both.
References :
MA bookkeeper
If you’re looking to start the business, you do so by filing with the Massachusets Corporations Division of the Secretary of the Commonwealth if you want to form an LLC or corporation. LLCs are expensive in Mass and corporations have a lot of franchise tax. You could do it as a DBA to start which is a simple form at the county courthouses, unless your in Boston and it’s done at city hall. DBAs are like $50 in Boston. BUT you’ll still owe all the same person income taxes which are a lot in Mass either way: http://www.northwestregisteredagent.com/massachusetts-department-of-revenue.html
So if you’re making things that peoples dogs are going to eat, there’s a lot of liability that goes with that, ESPECIALLY operating out of a home… Forming an LLC to do it out of would limit your personal exposure if you make a bad batch and kill someones dog. $500 sounds cheap if something ever goes bad.
After you file the paperwork to file a dba or form an actual entity like a LLC or corporation, you’ll get official paperwork showing it, then you get an EIN with the IRS and then you register with the MASS department of revenue to collect and remit sales tax from your sales
References :
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References :
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