What licenses and registrations do I need to start a homemade candy business in Oconomowoc, WI?

The owner asked: “I sell nationwide from home and online through an e-commerce platform and Etsy. Do I need permits in Wisconsin?”

Cassy's Candy Shop is off to a smart start by getting the paperwork right first. Candy keeps well and travels easily, so you can sell at markets, church sales, and online without rushing to beat spoilage. The Wisconsin seller's permit comes first here, because it is what lets you collect sales tax and buy inventory wholesale. In this answer you will find the business structure, the tax registrations, and the local and industry licenses for Cassy's Candy Shop, plus a short recap at the end.

Yes, you need a Wisconsin seller's permit, and it comes first: candy is taxable in Wisconsin, so your sales to Wisconsin buyers carry tax even if they arrive through an e-commerce site or Etsy. Homemade candy raises a second set of permits, because food made at home may need a licensed kitchen or may fall under a limited home-based food category, while ready-made candy bought wholesale only needs the seller's permit and a resale certificate. Shipping nationwide also means labeling and ingredient rules, especially for allergens. Ask about local business licensing and zoning, and keep candy sales records separate from household spending.

What Cassy's Candy Shop needs

1. Wisconsin seller's permit – It lets you collect sales tax from customers and hand your suppliers a resale certificate, so wholesale purchases of inventory stay tax-free and properly documented.
2. LLC (limited liability company) – An LLC shields your house, car, and savings from claims against the business, and it looks more established to customers and banks. If a child chokes on a hard candy or reacts to a hidden nut, an LLC means the candy business stands trial, not your cozy home.
3. DBA (doing business as) registration – Most banks will not open an account or deposit checks made out to "Cassy's Candy Shop" until the name is registered to you, either as a DBA or as the exact name of your LLC.
4. EIN (federal tax ID number) – You plan on 1 employee, so the federal tax ID number (EIN) is required for payroll, and you will also use it for the business bank account and supplier accounts.
5. Wisconsin employer ID – With 1 employee, you need a state employer account number for payroll withholding and unemployment insurance. It works like the EIN, but for state payroll taxes.
6. Business license – A business license puts Cassy's Candy Shop on the official map in Oconomowoc, which landlords, banks, and many customers will expect to see before they sign anything. Home occupation rules commonly cap client visits and delivery trucks on a residential street, so read them before you print business cards.
7. Cottage food permit or registration – Many states allow hard candy, fudge, and similar treats made at home under cottage food rules, often with labeling and sales limits.

By the numbers: Banks, insurers, and tax forms will ask for your industry code. For a homemade candy business it is NAICS 445292 (Confectionery and Nut Stores). With 1 employee planned, you are already creating jobs in Oconomowoc. That makes 7 items on your list.

Tip: Label each bag with ingredients and allergens, and note that it was made in a home kitchen if your state requires it.

To recap: Cassy's Candy Shop in Oconomowoc, WI needs a sales tax permit, an LLC, a DBA, an EIN, a state employer ID, a business license, and cottage food permit or registration. Handle these early and the business starts on solid ground.

We can file your seller's permit and the other registrations for you: start here.