Coffee Cart Business Setup: LLC, EIN, Sales Tax & Bank Account Guide
Once you’ve chosen your coffee cart business name, the next step is setting up the legal and financial side of your business.
If you’re wondering how to start a coffee cart business legally, this guide will walk you through everything you need, from forming an LLC to getting an EIN and setting up your business finances.
Step 1: Form Your Coffee Cart LLC (Limited Liability Company):
I started first and foremost by applying for an LLC. This is one of the first steps in starting a coffee cart business. 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!
Step 2: Apply for an EIN (Employer Identification Number):
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. An EIN is essentially a Social Security number for your business and is required for opening a business bank account and filing taxes. To get an EIN for your coffee cart 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!
Step 3: Register for a Sales Tax Permit:
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!
Step 4: Open a Business Bank Account:
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!
Final Thoughts on Setting Up Your Coffee Cart Business:
Setting up the legal side of your coffee cart business might feel overwhelming at first, but each step is actually straightforward once you break it down.
Taking the time to properly set up your LLC, EIN, and financial accounts will set you up for long-term success and make running your business much smoother. Requirements may also vary by state. For example, starting a coffee cart in Austin, Texas involves registering with the state and local agencies.
Ok well that was boring! Next, check out my guide on how to create a coffee cart website.