Start a Food Truck Business by Yourself

Starting a food truck business is not any different than starting the other sort of business. If you’re doing this with future commitment in mind then there are a couple of steps you’re getting to got to take when fixing a food truck business structure to form sure you set yourself up for fulfillment within the end of the day.

Don’t get me wrong, I’m not a lover of the way the govt conducts business even as very much like a subsequent guy, but unfortunately, they call the shots. If you’re not careful, you’ll find yourself paying huge fines, unreasonable taxes, or maybe behind bars. Therefore, you would like to form sure you cover your ass! this text is by no means legal advice; so, please confirm to try to your own research supported your specific location and laws.

Unless you’re coming into this business with other businesses already established you’ll automatically default to a sole proprietorship if you are doing not take additional steps to line up an entity.

This means that you simply are liable for all the business’ assets, liabilities, and debts. For example; if you were to be sued for something that happened at your truck (food poisoning, car accident, etc…) the plaintiff could follow your home and private assets. an equivalent is additionally true if your business were to file bankruptcy—your personal assets and accounts would even be in danger.

In other words, there’s no protection that separates you from your business. I might not recommend staying here for long.

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Why an LLC

Because we deal directly with the general public and are vulnerable to food-related lawsuits, legally separating yourself from your business would be suggested. the simplest thanks to doing that are to determine an LLC (Limited Liability Company).

An LLC will separate you from the business while still allowing you to work sort of a sole proprietorship. which suggests you’ll claim your income on your personal income tax return as against claiming it through the business or an organization. Furthermore, your personal assets (like your house and bank accounts) can’t be wont to collect the debt of the business. If you are feeling as if you would like more information, please still research this subject or contact knowledgeable.

Once your business grows to a bigger scale you’ll get to change the legal structure—this is once you hire a lawyer and accountant.

Setting up an LLC & FEIN (Federal Employer Identification Number)

The first step to establishing yourself as an LLC is to register a FEIN with the federal. A FEIN (Federal Employer Identification Number) is sort of a Social Security number for a business. Once you’ve got a FEIN you’ll register your LLC with the Secretary Of State for whichever state you reside.

My advice is to steer beyond and take this into your own hands. Legalzoom will charge a fortune for steps you’ll do yourself.

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Also, remember as you begin googling this information all the “sponsored ads” you see are third-party groups that want to charge you to try to do the work for you. I promise you’ll figure it out on your own. concentrate on the links you click. confirm they end in .gov or something official. If you’re really lost and wish help, consult an area accountant first. you’ll probably want to determine a relationship with one anyhow once tax season rolls around.

Liability Insurance

The next step you’ll want to require is fixing insurance. As a mobile food vendor, the simplest insurance I even have been ready to find that currently fits my needs is FLIP insurance. 

Commercial Auto Policy

In addition to insuranceyou’ll also get to establish a billboard auto policy together with your current auto insurer or buy a replacement one. If you’ve got a food truck, that truck will need commercial auto coverage. If you’ve got a trailer, your personal pick-up truck will need commercial auto coverage with the trailer attached to the policy.

Oh and guess what!? Since it’s “commercial”, it costs more. Get won’t to that because businesses are taxed far more by everyone across the board.

Once you’ve got established the national scale business structures, you’ll specialize in the local scale.

Business Licenses

You will get to apply and buy your business license all together with the states you’ll be selling. this may notify the state that you simply are conducting business and collecting nuisance taxyou furthermore may got to ask your local municipality and apply for and buy that business license also.

Each state and municipality is different. it’s your responsibility to try to do the leg work or to rent someone to try to to it for you. an easy google search will end in all the local information you would like. If you can’t seem to work it out, just attend your local city building; they’re going to be happy (hopefully…) to assist.

Health Permit

Once you’ve got your business licenses, you’ll get to apply for your health permit in each city/municipality that you simply are going to be selling.

Again, the laws vary vastly per state, county, and city. Please confirm you are doing your homework before rolling into a replacement area and begin selling from the roadyou’d be surprised how quickly another restaurant, truck, or maybe a citizen are going to be to report you to the authorities; I do know from experience.

Dot your I’s and cross your T’s. this is often a business, so you would like to treat it as such! However, don’t let all this legal stuff bring you down! Yes, it is often a pain within the ass, but I promise it’s just temporary and not as difficult as you think that. Just remember you’ve got to play by the principles if you propose to try to do this for any extended period of your time.

Oh and lastly, most of the structures, licenses, permits, and policies that you simply established this year, will got to be renewed per annum you’re in business. confirm you don’t allow them to lapse. it’s way easier and cheaper to stay them active as against starting over due to negligence.

Now that you simply have established yourself legally with a legitimate food truck business structure, you’re safe to work your new food truck business with confidence! The hard part is over! Now on to what you came to do—pleasing the palates of a plethora of individuals.

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