Question by ashleighH7: Looking for info on starting a home based dog treat business in Massachusetts?
I am beginning to research starting a dog treat business in Massachusetts from my home. I have been trying to gather as much information as possible, but I need to know the legalities of starting this kind of business from my home kitchen. Does anyone have any knowledge on how to start this and know of any Massachusetts legal issues from doing it at home? Thanks.

Best answer:

Answer by Fred
As long as it is not for human consumption, there are no health code requirements. After all, you can buy old bones/scraps from the butcher that he can’t sell to humans. I’ve seen packages in the grocer marked “Scraps for Animal Consumption Only”.

You do need to check out local by-laws regarding zoning as some communities do not allow running a home business (of any kind) from a residential neighborhood. This is, I believe, mostly in the more congested communities in or near Boston or Worcester.

You should go on IRS.gov and apply for an EIN (Employer Identification Number) since you don’t want to use your social security number (identity theft). It’s easy and doesn’t cost anything.

http://www.irs.gov/businesses/small/article/0,,id=98350,00.html

http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

If you are going to sell retail, you will need to register with the state for Sales Tax. The state mandates filing and paying the tax online. You do this after you have “formed” your company; ie gotten the EIN if you are just a sole proprietor. Don’t bother forming an LLC quite yet as the Secretary of State requires LLC’s to file a “report” annually – with a $ 500 filing fee (ouch).

https://wfb.dor.state.ma.us/webfile/Business/Public/WebForms/Registration/Register.aspx

https://wfb.dor.state.ma.us/webfile/Business/Public/WebForms/Login/Login.aspx

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Drake may know his state, but you do NOT have to register with the county courthouse for a dba (sole proprietorship) in MA. In fact, the only reason you may need to “file” a dba is if you name the business something that doesn’t include your full name. So if you name it “Jane Smith’s Doggie Treats” there is no requirement to file. Registering a “dba” is only to give the authoritie’s a way of tracking you down if a consumer has a complaint – nothing more. And, in MA, you only have to file with the town the business is based in; not the county and certainly not the state.

And in MA, there are no “franchise taxes”. Corporations pay income tax. IF the income tax is less than the state minimum excise tax, the amount due is the excise tax of $ 456; but you don’t pay both.

Know better? Leave your own answer in the comments!