Resale ID for Food Businesses

Yes I know, another piece of paperwork - but this one has some major benefits for the food business!

In Illinois you will file the Reg-1 Form which can be found on https://mytax.illinois.gov/_/ (Click on "Registration" then "Register a New Business") I highly recommend submitting this form through the website rather than mailing it in.

Whether you are a wholesaler(selling to a retailer who will then re-sell your product to the final consumer) or reseller(selling directly to the final consumer) - you will want to fill out the Reg-1 Form. Once you file this form you will get your IL Business Authorization (AKA Business Registration AKA Resale ID AKA Tax Exemption -- don't ask me why there are so many names for this, it seems like everyone calls it something different but they are all the same thing)

You will have the option to list different locations for your Resale ID. Vendors that cook at United Kitchen must include our address as one of the locations because they will also be selling their product at our location. Some other locations to include would be your company address and any farmer's markets where you are selling your product. You will also create an account on the MyTaxIL Website which is where you can file your sales tax quarterly.

Pro-Tip: If your corporation is located in Illinois you will need to put a "D" before your IL file number, if it is located in another state you will put an "F" - for some reason no one tells you this but it is necessary because you won't be able to submit your form without one of those letters before your file number! The D stands for Domestic and the F stands for Foreign, if you're curious

Once you have this little blue certificate you will be able to purchase your ingredients without paying sales tax on them! This is a particularly big bonus in Cook County where the sales tax can be 10%! The reason for the sales tax exemption is that you will be charging sales tax to your customers on your final product - so if you paid sales tax on your ingredients as well it would essentially be double-taxed.

In order to make a tax exempt purchase you will first want to talk to customer service at the retailer - every store seems to have a different way of handling this. For example, Restaurant Depot will not even allow you to shop there unless you have a Resale ID - the first time you shop there they will make a new account for you and give you your own Restaurant Depot card (Be sure to bring your blue Resale ID certificate with you the first time you go to any store!) Whole Foods on the other hand just enters in the number from your certificate at the register each time you want to make a tax exempt purchase so you need to bring that with you each time. Sam's club operates like Restaurant Depot where your Resale ID is on your Club Card, but you can choose at the register if you are making a sales tax exempt purchase or not. At Walmart you will need to go to Customer Service to get registered as tax exempt, they give you a paper card that has their reference number for your tax exempt account, you will need to bring that card with you each time and give it to the cashier when you make a purchase.

Let me know if I forgot anything, or if you have further questions about this topic! :)

Operating In Illinois as a Corporation from Another State

You can operate in Illinois if your corporation is located in another state. For example, my corporation was filed in Delaware. You should look into the pros and cons of the corporation laws in each state to decide what works best for you and your company.

In order to operate in Illinois you must file for permission to do business in Illinois. The IL Secretary of State will then assign you an Illinois File Number which you will need to complete the Reg-1 Form for your Resale ID.  When you complete the Reg-1 you will put the letter "F" before your file number, denoting foreign. If your corporation was located in Illinois you would put a "D" before your file number, denoting domestic. You will still file your sales tax in Illinois for sales made within the state, but you will renew your corporation annually in the state where it is filed. You can also obtain the Illinois DBA name for your corporation.


Any other questions? Let me know in the comments!

Benefits of A Shared Kitchen

How can a shared kitchen help my business?

Shared kitchens are a great stepping stone between the Cottage Food Law or Home Kitchen Law in Illinois and investing in a brick-and-mortar production facility of your own. Instead of paying upwards of $4000 per month for rent and utilities, you can pay just $25 an hour for use of a commercial kitchen. This greatly decreases start-up costs for a new business and lessens the barriers to entry in the market.

At United Kitchen we also have a retail storefront where renters can offer their products for sale. This is less common among shared kitchens but it offers another opportunity for new businesses to get their products on the market and test out their popularity. 

Another benefit of a shared kitchen is the opportunity to network with fellow entrepreneurs. United Kitchen hosts monthly meetings for our vendors to get to know one another, ask questions and bounce ideas off of each other. Everyone has different experiences and knowledge to bring to the table, and this is invaluable when you are just starting out.

What Is A Shared Kitchen?

What is a shared/incubator kitchen?

I get this question constantly – no one seems to know exactly what United Kitchen is, although shared kitchens are popping up all around the Chicago area.

A shared kitchen, or incubator kitchen, is a commercial kitchen space that is available for rent. This allows small food start-ups to use an “official” kitchen without all of the overhead. It is a great solution for new businesses and it allows for more efficient use of the kitchen because it decreases the amount of time that the equipment is sitting around unused.

How does it work?

Vendors pay by the hour to use the kitchen space. Vendors must have their own sanitation certifications, insurance, corporation, and Resale ID. Depending on the kitchen, vendors may be guaranteed exclusive use of the kitchen or they may be working at the same time as another vendor. United Kitchen is available for rent 24/7, and vendors are guaranteed use of the equipment they need. To schedule their kitchen time vendors view the calendar online, choose what time works for them, and email me(the manager) to be added to the schedule for their desired date/time.

The kitchen is inspected by our local health inspector, and the equipment is maintained by the kitchen manager. Vendors are required to clean up after themselves, cleaning supplies are provided but vendors must bring their own towels as well as their ingredients and any special equipment that is not provided.

Social Media: The Basics

I have found there is a wide range of social media knowledge among my United Kitchen entrepreneurs - but no matter what age you are there is always more to learn!

Social media should be your best friend as a new small business, think of it as free advertising!

The main thing to remember is that, like anything else, it takes time to get used to posting on social media so be patient as you figure out what works for you.

With that being said, get ready for a crash course in social media for your food start-up :)

Instagram - the Big Kahuna

Posting:

How often?  Weekly, at a minimum

What to post? Good pictures of product, behind the scenes photos, new products, promotions, be creative

HASHTAGS: USE THEM

-especially Chicago-specific (#312food #infatuationchi #chicagoeats #chicagofoodauthority #likefoodchicago #EatingGoodChicago) or location specific if you aren't located in Chicago

-use a variety of hashtags (some very popular ie. #chocolate #sweet, some less popular #eattheburbs #shopsmall #local)

-use your brand, #gravy #unitedkitchen

Followers:

Don’t sweat it if you don’t have many at first

Follow and like people who are using the same hashtags as you

Pro Tip: Follow the followers of another similar or nearby business

Check out United Kitchen on Instagram for inspiration :)

Facebook - Still necessary but catering to an older crowd

Don’t use too many hashtags – see note about editing posts

Try to engage, ask questions, offer promotions/prizes to incentivize engagement

Engagement increases your visibility to new potential customers(Friends of current customers will see your post if their friend likes/comments/shares it)

Create a business page separate from your personal account – share some posts on your personal page but try to keep it separate

Linking Accounts-

Link your Instagram to your Facebook, Twitter etc. so you don’t have to manually post on each account – but still post some “exclusive” content on each platform so that people have a reason to follow you on both Facebook & Instagram

Pro tip: “edit” your Instagram posts on Facebook to delete some of the hashtags and tag any applicable people

Other Platforms:

Pinterest – particularly if you can make your product an “ingredient” (blog)

Twitter – dying out, just link to your Facebook

LinkedIn – not super necessary but you should make a profile for yourself and list your title at your company, can be good for networking