Honey stand in a restaurant
I need some assistance here on the legalities of selling honey. I have a few hives at my house in Hendersonville, TN (Sumner county) and have started selling honey to friends, neighbors, and coworkers. I now have an opportunity to set up a small honey stand in one of the local restaurants...as long as I'm legal. What is considered legal in this aspect? Do I need a business license? Do I collect/charge sales tax? Where do I go to get myself "legal"?
Until now I've considered myself a hobbyist and "legal" to me was making sure my hives were registered through the state ag dept and making sure my honey labels met the minimum standards.
Thanks for any help.
Pete
Re: Honey stand in a restaurant
Here is a link to a "summary" document (52 pages :eek:) on sales and use tax in Tennessee. Honey is considered a "food or food product", and therefore subject to sales tax, but if you apply for an "Agricultural Sales and Use Tax Certificate of Exemption" there are agricultural exemptions for certain purchased items, and farmer sales [think honey] direct to consumers is exempt from sales tax in certain situations.
http://www.tn.gov/revenue/taxguides/salesanduse.pdf
Quote:
I now have an opportunity to set up a small honey stand in one of the local restaurants
Unless you (or an employee) is physically present and collecting the money for this honey in the restaurant, it is actually the restaurant "selling" the honey, and they are legally responsible for sales tax collection on items that are taxable.
Re: Honey stand in a restaurant
Quote:
Originally Posted by
Rader Sidetrack
Here is a link to a "summary" document (52 pages :eek:[COLOR=#333333]) on sales and use tax in Tennessee.
That's a handy link. Thanks! :)
Re: Honey stand in a restaurant
Thanks for that info, Rader...I appreciate it. Unfortunately, I don't think I meet any of the requirements for the ag exemption since I'm not on a farm or doing any farm-like operation.
Re: Honey stand in a restaurant
hmmm seems like beekeeping IS a farm-like operation.
Regards,
Steven