If you own a food business in South Carolina, you might be curious about any applicable cottage food laws. A cottage food legislation is a set of rules that permit legally and safely running home-based food companies. There is a cottage food law in South Carolina that outlines the regulations for home-based food companies.
The cottage food law in South Carolina permits people to create specific food items in their homes and sell them directly to customers. Food goods that are not potentially dangerous and don’t need refrigeration are covered by the law. Products like bread, cakes, biscuits, jams, and jellies are examples of permitted food items. However, the cottage food rule forbids the use of meat, dairy, and canned items.
You must obtain a business license from your neighborhood county or town in order to run a cottage food business in South Carolina. The South Carolina Department of Health and Environmental Control (DHEC) will also require that you register. A $50 registration fee must be paid, and an online application must be finished.
You must also get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) if you want to sell goods at farmers markets or hire staff. A free EIN can be obtained, which is wonderful news. EIN applications can be submitted online or by mail.
In South Carolina, you’ll also have to pay quarterly taxes to the government as a business owner. You must register with the South Carolina Department of Revenue and submit quarterly tax returns in order to do this. The deadlines for filing your tax returns are April 15, July 15, October 15, and January 15.
You might be unsure whether you must submit a 1099 form to the IRS if you operate an LLC in South Carolina. No, is the response. Unless they have paid a person or company more than $600 for services delivered, LLCs are not required to file 1099 forms. Obtain a copy of Form W-9 from the person or company you paid in case you need to file a 1099.
Last but not least, even if your LLC had a loss during a particular tax year, you still had to submit a tax return to the IRS. Due to the fact that LLCs are regarded as pass-through organizations and that any earnings or losses must be recorded on your personal tax return, this is the case.
Last but not least, South Carolina has a cottage food law that enables people to run home-based food companies selling non-possibly hazardous food goods. You must acquire a business license, register with the DHEC, and submit quarterly taxes to the state in order to conduct business legally. Additionally, if you intend to hire workers or sell goods at a farmers market, you might need to get an EIN from the IRS.