This section is going to be based on my experience which is very likely going to be different than many others. Hopefully some of this is useful for everyone but I know a lot of it will be specific to my situation. A few disclaimers to start: I live in Louisiana, I make cookies as a hobby/second job, and I am very risk averse. So lets dig into that first…
- Living in Louisiana: Cottage food laws and requirements to become an LLC are different in every state! I will share my experience with both, but know that if you are reading this from anywhere other than Louisiana, you will need to look into the laws in your state.
- Hobby/Second job: This is important because I want to be clear about my circumstances. There are many levels of cookie making ranging from doing it just for fun and wanting to get better simply because you want to make awesome cookies for friends and family, to wanting to start a full business that replaces a day job. At this point in my life I am somewhere in the middle. I want to make money doing this but I do not anticipate quitting my day job any time soon.
- Risk averse: This is important to know in conjunction with the previous point. Since I started to ramp up by business (by selling to more than just family and friends), I felt the need to become an actual business. I am a rule follower (to a fault sometimes) but that is what drove my decision to form an LLC. At the level that I am baking at, I had a few options for how I could have set up my business but this seemed like the best fit for me.
Starting an LLC
This was surprisingly easy. I went to https://geauxbiz.sos.la.gov/ and used their resources after creating a profile. The first thing I did was create a business license checklist, which I admit, was intimidating, but stay with me. Step 1, get an EIN. This is just like a SSN but for a business. It is free to do and it takes only a few minutes. Check it out here: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online .
Once you have your EIN you can apply for an LLC using the Geaux Biz site. To do this you will need your business name, address, and structure. You will also need a NAICS code. This is a code that defines what your business does. I had to do a quick search to see what the appropriate code for a cottage bakery. I found that 311811 was the correct code for me. Thank god for the internet, because I never would have gotten there alone.
Once I got all of my applications sorted out I IMMEDIATELY applied for Amazon business… (Create Amazon Business Account). I am all about cost savings whenever I can get it.
I am still figuring out where to go from here. I was recently sent a certificate to charge sales tax but I will update further very soon on how this business thing is going!
