Dumb Newb Question...does Anyone Have A Business License? How Do You Handle The Business Side?

[klousfrog]

I am not asking for legal advice. Just general discussion on the topic. What needs to be done in order to make profit from your crafts. Why is no one talking about this? Is it a taboo kind of question in crafts. If it is just no one reply and I will know better next time

[Pounder]

Klausfrog

Research this site a little and you will mounds of information a outing selling your crafts. In fact there is a section for Marketing and Advertising, I spent hours reading those tips and have applied several for my business. Also check The Internet sites for information as well as the Small Business Administration, SCORE and others, they h ave several tips and information. Good luck.

[Glendon]

Most of the business discussion on this forum is done on the Marketing and Advertising boad. There are some full time and weekend home business leatherworkers here, but it takes a lot of work to get to that point. It's not really talked about in other areas of LW.net mainly because most of us just find the creation process the more enjoyable topics.

[bruce johnson]

Quite a few of us have business licenses. The upside - You can buy from some sellers who sell to wholesale only. Other sellers have several price lists - and wholesale usually gets you the same or better pricing than their "buying memberships" without paying a fee. You can write off a lot of expenses if it ties to the business - travel for one. I spend a week in Wyoming and it's mostly a write-off. I visit my dad in Indiana and go buy some tools, ditto. Some people who work out of their house take a business deduction there, portion of utilities, phone line, cell phone, internet, etc. The downside is record keeping and taxes. Record keeping can be simple or complicated. It is really not hard once you set up a system and keep it up. Individuals file a schedule C along with your income tax. The state will want sales taxes collected for in-state sales too.

[Dwight]

I would suggest you simply go down to your local court house, . . . let them give you the "particulars" involved.

Years ago, I started a little sign shop, . . . saw the clerk down at the court house, . . . got a vendor's license that allowed me to collect sales tax (couldn't sell without it in Ohio), . . . and of course there is the record keeping and tax filing, etc.

It was really simple, . . . and with today's computers, on-line tax, the state accepts credit cards, . . . it's a simple little process.

Like Bruce said, . . . once you are a declared business, . . . there are "write off" and other deductable items to help you along. Mileage alone on your vehicle can be a huge help if you happen to travel to shows etc. I don't do a lot of em, but I could not afford any of them with today's gas prices if I didn't get that write off on my federal tax.

Again, go talk to the court house folks, . . . they'll steer you in the legal direction.

One last thought, . . . become a good record keeper, . . . develop a system that you can use, find, keep up with, etc. If you do not do that, . . . guaranteed trials and tribulations will come your way.

May God bless,

Dwight

[jessebeckham]

Probably redundant and repeated from the above posts, but my 2 cents....

I would suggest the sales tax license. Its better to have on and not need it than need it and not have it. I got an ass chewing from my CPA when I went to pick up my refund this year. I happened to sell his son something that he gave to him as a gift. oops....

if it is set up at all like Texas (i don't know how it could be much different) It is really a huge benefit to you in the long run. Its free to set up and only takes my 10 minutes, if that long, every quarter to file online.

Records are by far the most important thing in my opinion. Maybe the most difficult, depending on your Excel experience.

The big perks are definitely wholesale and tax free purchasing ( i think at Tandy you don't have to pay the membership fee if you have a sales tax license, but I could be wrong there.). ANd don't forget the before mentioned write offs at the end of the year. I temporarily live in Lubbock, my lady and family is in Wichita Falls and Nocona TX (3-4 hour trip) lucky for me a lot of my orders are from there so... guess who is writing off his weekend trips home (when I have orders to deliver of course)! The perks can really help in the long run, just keep receipts and good records and you should be fine.

Edited August 9, 2013 by jessebeckham