Creating a Profitable Funnel Cake Business – Part Three

October 2009

In order to sell funnel cakes, regardless of the venue, you will need to know and adhere to your local and state ordinances. In this, the final installment of this series, you’ll find out what types of licenses and permits are required to sell your funnel cakes at sporting events and fairs around the state. This article utilizes the state of Oklahoma as an example, but you will need to check with your state’s regulatory board for specifics that apply to you. However, these examples will give you a firm grasp of the situation.


Sales Tax Permit

Any vendor can expect to pay sales tax and concessionaires are no exception to this rule. In order to operate a concession business at any venue in the state of Oklahoma, you will have to pay $20, every three years, for a permit to levy sales taxes. In addition, the state of Oklahoma charges 4.2 percent sales tax, and individual counties and cities can levy their own tax on top of this. Therefore, after purchasing your permit from the Oklahoma Tax Commission, you will need to inquire with each county and city you will sell in to determine their rules and regulations. You may also incur an additional fee of $10 per three years in order to sell concessions in more than one location.


Business License

You will, of course, need an Oklahoma business license. The first step is to obtain a Federal Employer Identification Number from the IRS. Next, you will need to register with the correct state agency; in this case it will be the Department of Health. A Mobile Food Kitchen license will be required; fees vary between $35 and $100, depending on the specifics of your operation. You will also need a Consumer Use Tax account, which does not incur a fee and can be setup at the same time as your Mobile Heath Food Kitchen license.

Department of Health Inspection

You will have to undergo periodic checks by the department of health, regardless of your venue. Once your business has been checked, you are required by law to display the results of the assessment so that your customers can see your score.


Addendums to Licenses and Fees

Oklahoma allows individual cities and states to require their own licensing. However, not all counties or cities will do this. Therefore, in addition to your state licensing, you will need to check with the county and city tax commissioners, in order to determine what local regulations you must comply with in order to operate your business in the area.

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