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! :)

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.

Paperwork

That pesky paperwork... Don't let it get in the way of starting your business!

Here's the basics (for Illinois food start-ups using a shared commercial kitchen)

Step 1:  Set up a corporation in Illinois. (Filing Articles of Incorporation Online (Illinois)

Step 2: Get Food Liability Insurance(Food Liability Insurance)

Step 3: Get your IL Sanitation Certificate - take an approved course (Food Sanitation Certification Courses) and then send in this form to get your official certificate.

Step 4: Register your business as a reseller/wholesaler by filling out the Reg-1 Form, you need your FEIN (federal Tax ID from the IRS, you get this after you set up the corporation) and your Illinois file number which you also get when you set up your corporation.(Business Registration, Resale ID, and Sales Tax)

Step 5: Check if you need any other licenses/certifications, this may vary based on where you are located (for example, La Grange requires that you get a La Grange Business License when you are using a shared kitchen but Evanston does not) And make sure you have the necessary paperwork for your shared kitchen squared away!