A Step By Step Guide To Forming Your Candle Business
A Dream Without A Plan Is Just A Wish -Katherine Peterson
Starting a business involves planning, making key financial decisions, and completing a series of legal activities. When people look into how to start a candle making business, this is inevitably the part that causes the most concern. What was a hobby is now a job, and if you’re making money from it, there are some legalities that need to be observed.
That doesn’t mean this part has to be too overwhelming, though, and you shouldn’t hesitate to get some professional help.
Do your research. Know your market.
In any market you enter there will be competition, especially in the candle making industry. Therefore, it is vital to your business to strategize unique selling points to increase visibility amongst your target audience. Ask yourself, what do I want my brand to represent or be known for? Unique candle scents, eco-friendly products used, quirky candle names or its high-end luxury vessels. Whatever the vision, consider those details when building your foundation and naming your business.
Choose your business name
Choosing a creative and unique business name will make your business memorable allowing customers to recognize your company quickly. This is beneficial as it will allow you to separate yourself from competition. But wait, there is just one more suggestion before you decide to finally name your pride and joy and that’s RESEARCH. Yes, more research!
Research is required when naming your business as well. Not only do you want to research your market industry and determine if this name is being commonly used, you also want to visit your Secretary of State website and make sure there are no other companies with this name.
If the name has been selected by another entity then your company name will need to be modified.
Choose a business structure
If your desired name has not been selected register your business name under the entity of your preference (LLC, Corporation, Non-profit). This is also done with your Secretary of State. The legal structure you choose for your business will impact your business registration requirements, how much you pay in taxes, and your personal liability etc. so choose wisely! I suggest registering your company business structure before obtaining an employer identification number (EIN).
Obtaining an EIN first and then attempting to register your business could result in additional fees and delays should you have to modify the company name because it was already taken by another company. This can be costly if you have already started using this name and now need to go back and revise things such as websites, business cards and legal documents.
Be sure you are registering directly with the Secretary of State as you could incur additional fees for third party agencies.
Here is the Secretary of State website and a few neighboring states.
North Carolina https://www.sosnc.gov/Guides/launching_a_business/register_your_business
South Carolina https://businessfilings.sc.gov/businessfiling
Obtain an EIN
Your EIN will be required for important steps when you start and grow your business such as opening business bank accounts, paying taxes and applying for loans. It’s like a social security number for your business.
Visit www.irs.gov to obtain an EIN
Apply for permits or licenses with your local county
Keep your business running smoothly by staying legally compliant. The licenses and permits you need for your business will vary by industry, state, location, and other factors. Check with your local county to determine what permits and licensing is required.
Open a business bank account
Opening a business bank account will allow you to keep your personal finances separate from your business finances. Your accounting processes should also be set up before you start doing business. You need to make sure all your income and expenses are accounted for.
Candle makers need general liability insurance and professional liability insurance. Protect your business from all the inherent risks of third-party bodily injury and property damage, as well as the medical expenses and legal defense fees that may arise once you launch and start selling your candles.
Trademark your business name
Whether you choose to trademark your company is optional and a personal decision. To learn more about the process visit https://www.uspto.gov/trademark
Bonus Tip: When completing any registration or application process for your business I suggest using a business address or virtual address. Any business registration filing with government entities such as your State of Secretary Customers, now becomes public information. Solicitors, customers ( satisfied or disappointed) will have access to all information your provided such as full name, addresses and telephone numbers. Business addresses and phone numbers allows you to separate your personal life from business.
Congratulations! It's time to cut the big ribbon. Your business is officially open. Now, focus on managing and growing your business.
Wishing your business success and prosperity!