Legality & Logistics: Coffee Cart Startup
Now that you have your coffee cart name picked out you are going to want to start all of the legal/logistical paperwork since this can take some time to get up and running.
I started first and foremost by applying for an LLC. There are many different business structures out there, but after doing some research I decided that an LLC was best for my business. Now how do I apply for an LLC? I had never done this before so an initial google search took me to some random site where I could pay $200+ to get one. DO NOT USE RANDOM SITES. They are almost always scams!
To get an LLC simply go to your state’s Secretary of State website (the link attached is for NC) and click business registration. You will then submit an Articles of Organization form and pay about $125. It will take a few days and then once reviewed and approved you will get an email from your secretary of state saying you have been approved. And ta-daaa you are officially a business!
Next, I applied for an Employee Identification Number (EIN), even though I didn’t have employees I figured I would get a head start, and it doesn’t hurt to get one even if you aren’t employing anyone yet. Some banks will also require an EIN when you go to open a business bank account which is also why I was motivated. To get an EIN simply go to the IRS.gov site and click “Apply for an EIN.” It only took me about 5 minutes and was completely free! Click HERE to start applying!
Next, you will want to apply for a Sales Tax ID Number. You will do this on your state’s Department of Revenue’s website (link attached is for NC). It was also a simple and free process and they will mail you your ID number within 10 business days. I needed this because when working with a wholesaler, I can avoid sales tax by using this number to get a tax exemption. It will save me a few hundred dollars in the long run!
Lastly, you will want to open a business bank account. I highly recommend this so you can keep track of your spending and know exactly where your money is going. There are tons of great banks out there with amazing business banking programs. After a quick search, I decided to use American Express since it is all online and didn’t require me to go set up an account in-person which is difficult since I work full-time. It took a week or so to get approved, but once I was it has been super easy to use and they sent me the cutest little business debit card!
Ok well that was boring! But I figured all of this out with zero clue what I was doing so hopefully this will be helpful for one of you!