[BeTheBall]

I was wondering if the board could lend their assistance with the following scenario.

I reside in Florida and will be set up as either a LLC or corp (undetermined to date). We will have an online presence but also think it's important to build a market organically person-to-person. My screenprinter will be in Ohio. If I decide to pull a "Ben & Jerry" and take my act on the road selling in different cities within the Northeast, is it in anyway different than if I received and processed the order from our office in Florida (from a regulatory perspective)? Do I need to check into each cities municipalites to maintain compliance? Or can I just run events at Universities and similar type functions? Does the landscape change if it's wholesale (B2B) transactions? Are there any tax issues I'm overlooking?

Maybe I'm just seeing shadows in the dark. It's late ... and I'm tired.

Thanks in advance.

 

[Nancy G]

Wow- you are going to be my first real 'help' post! Usually I'm giving my thoughts because I haven't printed anything yet.
Soooo, I also am a LLC out of Clearwater, Fl. We live/travel the USA in RV since 5/08 when the economy helped into this decision (best move we ever made!)
Ok- I looked into selling in Mass, Maine, DC and TX. They all say online and on phone, you need to register your businesss in each state. Its called something like "Registering an Alien Business' or 'Authority to Sell for Out of State' business. You're not moving your business there, you are applying for permission to do business in that state.
Once you have permission ($$) then you get into the Tax Dept schedule for each state.

Once you have that, you can apply for a Vendor License/Peddlar lic to have on you when asked by officer for your license. Alot of people say/think there's a 'temporary lic", but I think that is the "peddlar lic" which can be gotten for just a day/week show in each town you go to.
I have not done any of this as I am just getting my domain/web host/ today!! But I really got excited when I thought I could be selling at craft fairs here in N.E. this fall!

(By the way, Me. was $250, Ma. $500, DC-no selling in the Mall, TX $700!! to register your business)


I have posted this question before but have not gotten any response. Are there folks who actually have travelled and know from EXPERIENCE if I have gotten this correct?
Nancy

 

[IYFGraphics]

I can't speak for other states or cities but here in Indiana our city only requires the "peddlers license" and as Nancy stated it's only good for the duration of the event, I think it also depend on where the event is hosted, if on public property you would fall under the city/county/state rules, if on private property I believe no license/permit is required only whatever the event sponsor requires to be a vendor.

Be advised that some of the cites, venues, events, require you to provide proof of liability insurance with varying dollar amounts of coverage.

Always a good idea to do what Nancy has done and do a little research, make a few phone calls to the event sponsor, and the local city offices to get all the info you can, it would suck to make a 500 mile trip only to find the necessary government office closed and you couldn't get the needed permit in time.

Hope this helps.

 

[binki]

You may not need anything or you may only need a temporary sellers permit. Sometimes an event such as a street far is exempt from the vendors collecting sales tax. Check with the event or jurisdiction for that info.

For B2B you have less issues as your visit on site could be just a sales call but your sales may be taking place in the city you are in and thus the income taxes that are involved. It depends on the jurisdiction and what they want to enforce. New York comes to mind as an example of a State that wants their share if you step foot on their soil.

Physical presence is more of a permanent thing so I doubt if you have to register as a foreign entity. I wouldn't do it unless you are notified you have to by the SOS.

Consider this situation: A basketball player in Florida pays no income tax in Florida but when he plays games in Cleveland he pays income tax to Ohio and the city of Cleveland for the games he plays there. That is why a player could move from from the Cav's to the Heat making less gross but netting $1 million more.

 

[Nancy G]

Thanks Binki and Jon. When I called the states, and asked my specific question, they said they don't give legal advice. So I said, you just enforce it but can't tell me how to comply? (nicely) They said to confer with a lawyer in the state, but i don't know any.
I'm still looking into but would love to just get the Peddlar lic!
AM I making too much of this? Have you -or others- sold in other states? The Peddlar lic is $2!! Would love if this is my answer!!

 

[binki]

AM I making too much of this?

probably. we have sold in AZ and NV at conventions without a problem. Don't worry about it. If you go to a market or show then ask the organizer what you need to sell.

 

[IYFGraphics]

Thanks Binki and Jon. When I called the states, and asked my specific question, they said they don't give legal advice. So I said, you just enforce it but can't tell me how to comply? (nicely)

The reason you got that reply is because THEY DON"T KNOW! LOL!

They said to confer with a lawyer in the state, but i don't know any.
I'm still looking into but would love to just get the Peddlar lic!

It comes down to "who" enforces the rules at the event? if it's the police (most of the time) the peddlers license should get them off your back....because they don't know either what is required. LOL!

AM I making too much of this? Have you -or others- sold in other states? The Peddlar lic is $2!! Would love if this is my answer!!

My advice would be to contact the event sponsor, they should be well informed as to what is required for their event and should be more than happy to help you find the correct info.

We use to do a show in Dayton OH. every year (dayton hamvention) it is a three day event held on private property there were no licenses/permits involved, only booth rental, proof of insurance, and the mics fees they charged for exhibitor badges, parking permits, etc.

Here's a link to what they required to be a vendor at the show.

[media]http://www.hamvention.org/files/Inside%20Exhibits%20Application%20Form%202010.pdf[/media]

Hope this helps.

 

[splathead]

Generally, if you are selling at events, if any special licenses or permits are required the promoter will inform you and require it with your booth rental fee.

If you are selling out in the public, like on street corners, you will probably need a permit by the city &/or county you are selling in.

 

[Nancy G]

Thanks again guys!! You're life savers. And Barrry- don't listen to me. ha.
Will contact some vendors and ask them.

So funny that as I'm getting ready to do all this, my hubby just said with the economy, maybe we should wait!? 1 hurdle at a time.. he's behind me tho, so we'll talk it out.
Thanks again!

 

[Nancy G]

BetheBall, tried to answer your PM but your box is full. Make some space and I'll try again in a day or so. N