Do you have a business license???

[lynn's lampwork]

My DH says it's time for me to get one. Do you have one?

Thanks, Lynn

[Dasi]

Sure do have a business license with the city...and a wholesale license. The cost is so small, versus breaking the law....

[Hayley]

Yup. Got a business license and a resale license. Registered dba (doing business as) with the city AND need to pay sales tax.

You don't want to be audited. Nasty stuff.

[scouncil]

yes, it allows me to get a lot of things for cheaper and makes my jewelry more affordable....

[LNKArts]

I hate to kill this thread, but... I also have a tax id and pay sales tax. Haven't heard anyone say that they claim their sales income on their annual income tax. Do you?

Sorry, I appear to have sprung from nowhere. I joined this forum back when it was created so that the CA4 (I think that was the number) could continue in peace. Two reasons for having disappeared since then. 1) Very busy at work and 2) I finally nagged DH into letting get cable. We used to connect at about 18K on a 56K dial up baud modem (old phone lines). So now I have instant gratification for my short attention span...but I digress. I just didn't want you to think I worked for the IRS or something.

[Dasi]

Yes, Yes , Yes..... I do a schedule C on my return.
I also file sales tax reports every quarter and pay the proper amounts.

[Humble newbie]

I'm lost! I just got dba and a tax id. Is the tax id the same as a wholesale and what is a business certificate? Thanks in advance!

[LNKArts]

Heather,
Are you a fulltime artist?

[jknapp]

Absolutely, must have if you sell. Allows you to purchase wholesale also

[Dasi]

Yes, full time artist.

Most cities require you to have a license if you are a business. No matter what type of business. I think I paid about $50. but it depends on what you do. They classify you and then the price is different for different occupations.

You may also need to file a fictitious name statement and pay an amount if you do not use your real name in your business name. I go by Heather Ferman Beads now since I do not want to file that also.

[gellerl]

So does that mean you charge sales tax on all your items...or just in your state???

[lunamoonshadow]

yes. I have a d/b/a resale certificate with the state, collect & file my sales tax with the state & my schedule C with the federal.
I wouldn't think of having it any other way~the fines are insane & the risks are just toooo huge! (besides, the perks are great--this way I get wholesale prices & can deduct the cost of my supplies, postage, etc.)
~luna

[lunamoonshadow]

You charge salestax on any item shipped to or sold in a state in which you hold a resale certificate.
(ie: folks who do business "in person" in multiple states are *supposed* to collect tax in all of those states--and supposed to hold tax/resale certificates in all of those states. Not mail-order stuff--just doing fairs/festivals/art shows, stuff like that)

[PaulaD]

business license, resale number, federal tax #, and a couple of million of liability insurance...More paperwork. Grumble. Grumble.

[Ro]

I have had my corporation for almost 13 years, originally for my dog obedience business, i just did a DBA as Ro's glass world for it. I have a C-corp so its a separate entity, my personal taxes/etc have nothing to do with the company, in my situation it is the best, not necessarily for everyone. i have an accountant that takes care of taxes and sales tax, at this point he asks me quaterly if i have sales tax to declare. he charges 175/yr fee for regular filing and 50 to process sales tax IF I have it, if none to declare i dont pay him anything. All i have to do is give him copies of check book register and bank statements once a year and he does the rest, its worth it for me.
ro

[tasminann]

Yep, have license, resale# and pay taxes (state and income). Wouldn't consider doing business any other way. (Not that I like paperwork, mind you...just prefer doing things on the right side of the law.)

[Hayley]

I am with Ro - have had my corporation for almost 17 years for my graphic design business (still my day job, ugh!) and I did a dba as enVision for my jewelry business, now adding glass to that. Being a C-Corp, everything is by the books. Sales tax, corporate filing, inventory, etc. It's a pain but must be done. The consequences of not doing so is much, much worse.

[kandice]

Yep, I have a license with the state and with the city. Pay my taxes and everything. It does wonders for my conscience, and keeps me from worrying about being audited. :)

[kandice]

Yep - schedule C here as well.

I hate to kill this thread, but... I also have a tax id and pay sales tax. Haven't heard anyone say that they claim their sales income on their annual income tax. Do you?

Sorry, I appear to have sprung from nowhere. I joined this forum back when it was created so that the CA4 (I think that was the number) could continue in peace. Two reasons for having disappeared since then. 1) Very busy at work and 2) I finally nagged DH into letting get cable. We used to connect at about 18K on a 56K dial up baud modem (old phone lines). So now I have instant gratification for my short attention span...but I digress. I just didn't want you to think I worked for the IRS or something.

[jwelsh]

We Have A Business License As Well. We Charge Sales Tax To Fellow Va Residents, We Pay Sales Tax Monthly. This Will Be My First Year Filing Taxes For The Business..

[swamper]

Not exactly - all of my sales go through two bead stores and a gallery and they charges and pay to the state the sales taxes.

My city classifies me as a manufacturer and as such requires no license. I file a schedue C with the 1099's provided by the stores and gallery.

The state gave me documentation that I am considered a manufacturer and as such qualify to buy wholesale without paying taxes on the materials I use to make beads and jewelry.

I use to run a software business and the state sales tax monthly was a pain in the rear. I'm so glad I don't have to do it any more.

[madnesssr]

So how many of you that have a license, have your studio in your home?

[cadia]

At what point does someone need to go "legal" is there some monetary amount made or some "line" drawn in the sand between business and hobby? Should everyone listing on eBay be paying sales tax?

[bclogan]

At what point does someone need to go "legal" is there some monetary amount made or some "line" drawn in the sand between business and hobby?


The IRS defines the "line in the sand" as the point at which you expect to make a profit. If you do lampworking (or whatever) as a hobby and just sell a few things to cover some costs, you're probably seen more as a hobby than business. You can report hobby income as a line-item on your personal taxes without having to fill out a schedule C. If you expect to make a profit at some point (and the IRS does realize that it may take a few years to do so) then you can claim a business. If you file as hobby, you can't take as many of the business deductions.

It's actually a lot more complicated than that, but that's the short story.


Should everyone listing on eBay be paying sales tax?

Legally, yes. Any sale you make to a person in a state in which you also reside (or have a business presence) requires that you collect and submit sales tax to your state. It can be as easy as including it on your yearly state income taxes. At least in Michigan they have a line-item for it. In reality - I doubt it happens very often.

[cgreagor]

Go ahead and get it. The fee is so little and the perks so high. You will be able to get items wholesale and write off items you buy on your taxes. We had to purchase and new camera and computer this year plus the computer table. I set up my lampworking and can write that off too. So many options to help you save money and get your buisiness running.
You can go to a tax person the first few years if you are confused about how to file the taxes.

good luck!
www.firedancerjewelry.com

[cadia]

How far "back in time" can one go to claim start up costs- such as kiln, supplies etc. Thanks for all this great info !
Sally