Can You Resell Prepackaged Food

Posted by Damian Roberti on

In order to start a business, especially one that sells prepared foods, you must get a Business license. It is possible that additional licenses and permissions relating to food may be necessary. It is possible that your jurisdiction has zoning restrictions and regulations that apply to a home-based business that stores and packages food. When purchasing a house in an area with a homeowners organization, examine the rules to see if there are any restrictions on operating a company from your residence.
So here is more on what you need to when asked 

Can You Resell Prepackaged Food
Business license

Your state's business development agency, as well as local and county authorities, may inform you of the requirements, such as the application process and associated fees. If you want to physically sell prepared food in this jurisdiction, you may be required to get a license from the city and, in certain cases, the county. Consider the following scenario: you sell spice and seasoning packages directly to consumers at flea markets, farmers markets, and arts and crafts exhibitions in four different locations over the course of a year. Each municipality may have its own licensing requirements. As long as you are selling the spices wholesale to a gourmet food shop, you are not need to obtain a license in each of the cities where the stores are situated.




It is needed that you get a sales privilege license and collect sales tax in order to submit it to the state and city where your business is situated whether you sell directly to customers in person, via direct mail, or through your website. Amounts of sales tax levied on food vary based on where you live — rates differ state-to-state — and whether the meal is consumed on the premises or taken away. To put it another way, if you sell ice cream cups and the consumer consumes the ice cream at your booth, you may be required to collect sales tax from them. If the food is being transported home to be consumed, you may not be required to collect sales tax on it. A sales license is not necessary if you are simply selling the product in bulk quantities. Some sellers, on the other hand, will not give you a wholesale discount if you do not have a valid sales license.



Sales through affiliates and tax collection

In certain cases, states have widened their sales tax legislation to require that if your company has a physical presence in their state, you are required to collect and return sales tax on all sales that occur in their jurisdiction, regardless of where the sales occur. Having an affiliate sell your food items raises the question of whether having a physical presence in the state is deemed to be a physical presence. Although an affiliate sells a product on your behalf and earns a commission from you, he or she does not take physical control of the food packages, deliver them, or collect money. Affiliates are also referred to as associates in some circles. Amazon.com has prohibited affiliate sales in the states of Arkansas, Maine, Colorado, Minnesota, North Carolina, and Rhode Island since those jurisdictions define a physical presence as selling through an affiliate who is a resident of the state. Affiliate sales in those areas are prohibited by law. It is your responsibility to collect and pay sales tax on affiliate sales in those states if you have affiliates in those states.



Inspection Kitchen

Purchasing prepackaged food and reselling it does not necessitate the inspection of your kitchen, nor does it necessitate the possession of a food handler's license by you or your workers. The opposite is true if you cook the food and package it; in this case, the facilities must be examined for health and safety violations according to the rules in your area.

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