licenses and permits needed to sell live plants

Liberty Hill, TX(Zone 8a)

I just spoke to the man who owns a hardware store in town and he told me that he would sell my starter plants on consignment if I found out what licenses or permits I needed. I do this on a VERY small scale so I'm not sure if it would even be worth it. I would love to have your input and advise. I started a thread about this on the MG forum as well.
Thanks,
Lisa

You'll need a Texas Sales Tax Permit, even if your not collecting taxes, you must report it as wholesale sales. You may need to register a business name with your county. Don't know as far as growing, Your local Ag agent is going to have best info concerning your city, county and state permits concerning plants.

west Houston, TX(Zone 9a)

call the state comptrollers office--they have all the answers to selling plants and licenses (and selling anything in Tx)--the phone number is easy to look up, google it

Lebanon, OR

each state, sometimes countries are different, so contact all of the above.

D

west Houston, TX(Zone 9a)

in TX you can get it all done thru the state comptroller's office

Liberty Hill, TX(Zone 8a)

Well that's ggod to know iI know somebody who works in that dept. Do I have to have an Ag. license?

west Houston, TX(Zone 9a)

you can get everything you need thru the comptroller's office (including ag licenses--they will do it for you). It depends on HOW you sell whether or not you need an Ag license--so ask them. But they handled EVERYTHING for me for 3 years; including selling off parts of my ag related business in two parts recently (wholesales and other). They really are the most efficient govt office in the state to deal with--esp. if you have owning interests in several different types of businesses with multiple owners like we have in TX.

Liberty Hill, TX(Zone 8a)

One more question. Is it expensive? I really don't make much. I'm not even sure how to do the pricing.

west Houston, TX(Zone 9a)

depends on the type of license/licenses you need--ask them, they don't charge a cent for info

Liberty Hill, TX(Zone 8a)

Thank you very much I will call them tomorrow. Then I can decide if its worth it.

Let us know what you find out.

Sales tax permit, free. Business license depends on the county, was like 10.00. Some permits tend to be per prorated per sales, so don't think you can't afford it without checking first. Whatever you do make sure to take notes and keep paperwork together. Most licenses and permits are easy to forget you have once you have them and it's JUST as important to cancel them when they are no longer needed. You can do it!!! Good luck and have fun :0)

west Houston, TX(Zone 9a)

sales tax permit was included with the business license for me--and definitely not $10.00--more like $129.00 but it depends on how many venues you want to be able to sell thru--mine was unlimited as long as it was not a retail outlet

Austin, TX(Zone 8b)

I'm in the landscape industry and from what I know, this is some of what you'll need to do to get started. Of course there may be other things too, but at least this will get you going in the right direction.

#1. The Williamson County DBA filing & recording fee is $16 + 50cents for each additional owner (if applicable).

#2. You will need a Sales Tax Permit from the State Comptroller. You'll need to do this after you record your DBA. The sales tax permit is actually free to obtain and maintain. You just have to collect sales tax from end-users (consumers), but if you are wholesaling to the store owner for him to resell, then you just record it as a wholesale sale and there is no tax involved. Be sure you get him to fill out a sales tax exemption form (it will be included in the packet you get from the comptroller). Here's the link to apply for a permit online:

http://www.window.state.tx.us/taxpermit/

#3. You'll need a TDA Nursery Floral Certificate. Get this after you have a DBA and Sales Tax Certificate.
You can read about the TDA program here:
http://www.agr.state.tx.us/agr/program_render/0,1987,1848_5649_0_0,00.html?channelId=5649

Basically:
Depending on the size of your growing operation your TDA Nursery Floral Certificate cost will be...
10 acres or less = Class 2 certificate= $110.00 annually
10-19.99 acres = Class 3 certificate= $145.00 annually
20+ acres = Class 4 certificate= $180.00 annually

The store you are entering a consignment agreement with will also need to apply for a Class 1 Nursery Floral Certificate to sell plant material in a retail setting (but not growing any) which costs $75.00 annually.

Here's the link to the application: http://www.agr.state.tx.us/vgn/tda/files/1848/6550_rnf_500_nf_certificate_application.pdf
Here's the link to the instructions: http://www.agr.state.tx.us/vgn/tda/files/1848/6552_rnf_500_instructions.pdf

You will both be inspected either before your applications are approved or shortly thereafter. But the TDA agency may be understaffed/overworked like most of our state agencies, so it may be a while. You'll also be subject to routine inspections as well. Not a big deal if you are producing quality plant material and keeping disease/insects under control.

Best of luck, and let me know what you have available. I'm a designer/purchaser for a large commercial landscaping company in Austin and am always looking for great local & regional sources of plant material. Lots of money to be made in the growing segment of the industry...

Liberty Hill, TX(Zone 8a)

Thank you for all the information. I have been told so many diffirent things that I don't know what to believe. There is no way I can afford those fees it would be cheaper for me to give the plants away. I don't have that many and frustration is begining to set in. I just got home from talking to the man again, and while I was there a man who owns a nursury in a small town near me was there. He said that Sales tax is not collected on food bearing plants (except fruit trees) and that I didn't need an ag licence because I didn't have that many plants. The hardware store is selling onion sets and seed potatoes already so I don't know if there is any difference? I have heirloom tomatoes, peppers, eggplant, cukes, varies squash, varies melons but I'm REALLY small scale.
Thanks,
Lisa

Canyon Lake, TX(Zone 8b)

Lisa,

Maybe you could just tack a piece of cardboard on a utility pole, "Home Gardener With Extra Plants For Sale - 123 Any Street".

There was a lady in a small town where my parents used to live that kept a garden right in the middle of town. She had a clear fiberglass lean-to built on the side of her old wood garage that was always full of transplants right about this time of year. Folks from all around came to her place and would pull up in her drive way and honk. The folks would go home with their newly purchased transplants eager to get them into their gardens. This was a word of mouth thing that had been going on for years.

Jerry

Sorry about the frustration, Lisa. We have tons of 'backyard nurseries' here in east Texas. Most are just like Jerry said, with nothing more then a cardboard sign. There is no way these people have all the legalities set up. One woman I know is a bit off the main road and she has biz cards with a map on them to her house. I've seen her cards all over town, including feed store.

I really do think if you plant them, they will sell. If not, grow them yourself and sell the extra fruits. There is a huge part of the population interested in veggie gardening. But don't want or know how to start from seeds. They forget to start seeds and realize too late and have to scramble to look for starts. I've done it plenty of times myself.lol

I've noticed with the economy that so many more of my friends and family are asking about veggie growing. Feed stores and seed companies are saying they haven't had this much business since y2k...don't get discouraged, I think this would be a good year to start. Good luck, rooting for ya!

New Waverly, TX(Zone 8b)

You could always have a "Yard" sale! I know a few people that do that.

Liberty Hill, TX(Zone 8a)

THANK YOU all for the encouragement and information, I really need it. I can probably sell them by word of mouth and at or Farmers Market, as time permits. I have 2 sons who are very active in sports so I see a lot of people that way too. I live way out in the country and I wouldn't be comfortable having people I don't know come by my house. I already have 200+ tomato, plants 50+ peppers and I will sow squash when the time comes. I believe as Cocoa said that If I plant them they will sell. I am really interested in getting people to be more self-sufficient. Maybe this is a good place to start. IT IS RAINING HERE YAAA!

Canyon Lake, TX(Zone 8b)

Lisa,

Quoting:
I live way out in the country and I wouldn't be comfortable having people I don't know come by my house.
I doubt you would ever have anything to worry about with folks who garden. Besides gardeners are probably some of the most honest and friendliest people you will ever meet.


If you would be interested in buy heirloom tomatoes there is a guy on Craig's List selling them. Just an idea.

http://sanantonio.craigslist.org/grd/1036194331.html

Jerry

Liberty Hill, TX(Zone 8a)

Jerry,
Thanks for the link, but I'm trying to SELL Plants, not buy them. Lead me not into temptation, I can get there myself! (Just kidding) It does give me some ideas though. I have some tomato plants that are in containers that I have overwintered and they are loving this rain and starting to bloom. So hopefully I will have some new types of tomatoes to try soon.
Lisa

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