One of the first posts I ever wrote for this blog was, “Why All Businesses Need to be licensed.”
On Wednesday, July 14, a mentor with the Las Vegas SBDC (Small Business Development Center) helped me get my Nevada business license. After joining him on-line via a Zoom meet, he walked me through Silver Flume, the Nevada portal for business license applications.
I was grateful for the help. One of the questions posed by the Silver Flume website required me to add an NAICS code to the application. NAICS (pronounced “nakes”) is a North American industry classification system that was developed by Federal statistical agencies for the collection, analysis, and collection of data related to the U.S. economy.
Although Silver Flume literally offered multiple pages of coding i.e. code 11 applies to agriculture, forestry, hunting, and fishing while code 21 applies to mining; my mentor was able to tell me that candle production fell under code 424990 (other miscellaneous nondurable goods). I cannot imagine how much time it would have taken me to figure this out on my own given how many classifications there were.
Since Tasty-Candles will be a home based business, the $200 annual license fee was waived. The SBDC mentor helped me set up my DBA (doing business as). He also helped me with registering with the Nevada tax office which will now expect quarterly filings.
Although I am now licensed by Nevada to sell my candles, I still have to be certified within Clark County. The mentor sent me the applicable DBA form. I will have to fill it out and get it signed by a notary prior to turning it into the county office with a $25.00 application fee. Since I don’t live in Las Vegas, I’m opening that the local county office will accept this form. If they won’t accept it, I’ll have to drive to the county office in Vegas.
Once I have my county DBA certification, I can go to my local bank to set up a business account for Tasty-Candles which for tax purposes, will be separate from my personal account.
Shop Nevada Website: In addition to helping me get my state business license, the SBDC mentor told me about Shop Nevada. This Etsy-like retail platform allows vendors who reside in Nevada to advertise and sell their products through this platform with one notable difference. While Etsy charges 20 cents per item being sold while also charging a 5% commission, Shop Nevada is free for all Nevada state residents whose products were also made in this state.
Statistics say that the average starting candlemaker earns $500 in gross sales per month. If I made $500 through Etsy, the platform would receive $25.00 in commission not including the cost of all posted items. Money not paid to Etsy (or eBay which charges a 10% commission) is more money in my pocket. I have submitted a vendor application to join Shop Nevada. If my application is approved, I will at some point, provide a link in this blog that will connect to my Shop Nevada store.
Since my candles will be sold on a seasonal basis to avoid problems with having them melt in the summer’s heat during shipment, I don’t anticipate having my business operational until some time in October of 2021.
Things that still need to be done prior to becoming operational:
- I need a county DBA (doing business as) certification
- Once I have a county certification, I can open a business account at a bank.
- After opening a business account, I can get business debit and credit cards.
- I need to speak with an insurance agent about liability coverage.
- Completed candles need to be packaged.
- I need to set up my e-store at the Shop Nevada website. NOTE: I am not prioritizing this because this shop will be seasonal. Given how hot it is, I wouldn’t want to ship any candles in this weather and to then have a customer receive a partially melted candle.