What to do, what to do??

[jmyers2295]

Hey all....from the great state of West "By Gawd" Virginia

I don't post on here as much as I should. Usually either tending to kids' needs, fishing, or in my little corner of the garage making sawdust.

So tomorrow (4/4) is my fourth craftshow and I'm watching the paint dry on a "bubble gum machine" I made to sell. A fella who is in the greenhouse business told me today at work that I may want to consider a business license. For now, I've done shows and pocketed the money. Hasn't been much, to the tune of about $700 combined so I never really thought about it. He had told me about folks along the side of the road selling flowers during peak times (Mother's Day). He has stopped, asked to see their license, and when they don't show it, he reports them. So that put a pang of conscience into me a little. Especially now that I want to do this show, one in May, and then begin exploring Etsy sales.

I don't have any experience with business or operating one. Is this really difficult come tax time, etc? I mean, $35 is one thing to pay for a license yearly, but I mean, really? Accountants and stuff? Is this a hassle?

Let me know what you all think
--Jay

[3_M]

Jay,
The craft show should give you a paper to fill out for taxes.
You do not need a license. Selling online, you do not collect taxes, only in your own state.
Call the tax people in your state, they can help you.
FD Mike

[HAMMER]

Greenhouse business must be real slow.

[will8989]

I can see the greenhouse's point of view - he has an established business and has to pay all sorts of licensing, insurance, fees, taxes, etc. and feels the roadside sellers are taking away from his business as they can undercut him. That being said, go on your state's DLLR site, in Md it's Dept.of Licensing & Labor Regulations (I think that what it means) and start checking. If you need a sales tax license, call them first. They will direct you to the correct office to call for your trade name, usually about $25 or so. When you get that, call them back for a sales tax license. That is all you should need at this point. Should only take about 1/2hour, or it can probably be done on line. IF you make anything for children, make sure you are up to date on the regulations for paint & finishing, and check around for liability insurance. There are many forums on here for you to check for that information. I'm telling you this because it sounds like you are planning on doing some serious selling at craft shows and online. The phrase "I didn't know that" doesn't cut it anymore and you will be held responsible for everything. Remember, every penny you spend on this is tax deductible. Keep accurate records and you are on your way.

[DWSudekum]

Jay recently my area required all vendors to get what is called a transient vendors license and collect taxes. Just keep good records and all will be cool.

DW

[Fretnot]

I feel for you scrollers in the states. I have been doing craft fairs for a while now and pay no tax, don't need any licences either. I have never been asked for public liability insurance. I did apply to attend a craft fair in another town and they sent me an application form online and in one of the little boxes it asked me for my public liability insurance number. As it happened I did not attend that craft fair.

As of april 14th I will be attending a craft fair every Saturday and someone once said that if someone buys one of my items and gets a splinter they could sue me. I think that is utterly ridiculous. In all the years I have been scroll sawing I have never had a splinter and everything I make is well sanded and finished to a high standard so a splinter is almost an impossibility.

[huckaberry3]

As for most cities the "buisness license" is a joke. If you are a big business then they just want to make sure that all applicable rules and labor laws are followed. for small mom and pop opperations they usually consist of filling out a form that states that you have no employees and are not required to carry work comp. Then they also have a self reporting system of income in their jurisdiction.

As for public liability insurance ask the show promoter if they have theirs. When you rent a booth in their establishment they are the ones liable over all. You should not be liable for their show. I do carry the ins. but do not give out the number without just cause. That is what part of your promoter fees should cover

Keep in mind this is just the information that I have found in my area. be sure to check with the local agency for correct info.

[will8989]

The promoters insurance in MD covers the building itself & common areas. It does not cover if someone gets hurt from purchasing something from you. The one show I do allows me to purchase the insurance for $15 a year for extra coverage if I don't have my own policy, which I now do, but it does not include anyone suing me unless they get hurt in my area. A trader's license is different from a business license in MD. All that is isthe name of your company and no one else can use that name as long as you are. That is the name put on your sales tax license. For craft shows, all you need is the trader's license & sales tax.

[crupiea]

Your buddy rats out total stranger for not paying their taxes?

I have offically now heard everything.

If he even mentioned that to me we would no longer be friends.

If he will rat them out he will do it to you too.

getting one will allow you to sell at more places though so there of course is a reason to get one.

[Forester21]

Each state has different guidelines. Do a search for what yours requires. Itnot difficult. As was mentioned you get to claim your expenses come tax time. And when you purchase the raw materials that you use (and then sell) you shouldn't have to pay sales tax on it.
T

[KTravis]

I understand where the other gentleman is coming from. Roadside vendors have no overhead ect... That being said I still feel he's being a bit of a twit

[will8989]

Twit? Sorry but that stuck me funny and made me laugh!!!! I wouldn't trust the guy as far as I could throw an elephant!!