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Thread: Moving craft hobby into selling

  1. #1
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    Moving craft hobby into selling

    I got invited to a small church craft fair in december based on my booth at Maker Faire. I realized how much stuff I have from dolls to octopod toys to the kitchen things I used to make that have been stored, and even the dragons. Now I realize I may have to do things about sales tax and how to take money from people and all that. I am just dipping my toe in, not sure how much I want to make this a total side income. However I do want to follow all the rules. I have one of the cube things I got from a friend for my phone, and other than that I am a total newbie.

    Do I need to sign up for a tax license or just pay taxes on what I collect? So far I have sold under $150 to friends so I haven't worried about it. Is there some type of income threshold that I need to pass or is it just a good idea for anyone who sets up a booth at a fair?

    Gonna go google a lot

  2. #2
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    Call the municipal office (city, township, county) of the location where you will be selling to ask about licenses or local taxes. The state auditor should have information about state sales tax (if the church keeps a portion of sales you may be exempt)

  3. #3
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    Call your local library and ask for directions to SCORE--that's where our SCORE holds meetings--and they can totally get you set at SCORE--amazing organization and it is totally free.

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    What is SCORE?

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    It's volunteer business advisors-- partners with SBA I think? Anyway, their presentations are amazing, and they give you one on one mentor counseling to help get your small business started.

    https://www.sba.gov/tools/local-assistance/score

  6. #6
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    Our state, IN, has a whole section on the web for new business people. They are trying to make it easier.

    Zoe, it is an interesting thing you are doing but please do a business analysis and plan regarding cost of your material and YOUR TIME when selling homemade crafts. How much time can you realistically allocate from your life to producing items to sell? My motherinlaw is retired and has nothing much else to do and crochets a whole lot of baby things which she mostly donates. She gets very little for her time and skill when she is able to sell them. She would cover the cost of material if she purchased them at full retail.

    Suggestion: Make a few items and keep track of your accurate cost of materials and time. Once you have truly accurate numbers, sit down and figure out if this is what you want to spend your life energy on or whether there are better avenues to follow. SCORE is a great resource but they will want some data about your business idea and costs.

  7. #7
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    Sweetana, I disagree about not contacting SCORE and how they will want data. I have been to two of their presentations with a very vague business idea, and no ideas about costs or records of my time and they have been full of great ideas and support. In fact, going to them very early on is my recommendation, as they can tell her what she will need for business licensing and sales tax, right off the bat. That was covered in the first presentation I went to, very thoroughly, and they had lawyers there to help if you wanted to talk right then.

    Sometimes just talking to them early will help you get your bearings, Zoe!

  8. #8
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    And I still think it is jumping into the details before first seeing if you are making any money on the few items already possible. It is quicker to make a few items and write down the cost and the potential price, than attend meetings where they should first ask what do you do and how much cost you in material and labor to make each item. They are going to need to know something before they can accurately talk about hobby vs business and the ramifications of each.

    Note: It is a very rare home crafter that can realistically make any money when they factor in a reasonable cost for labor and want to have a legitimate business and pay their taxes.

    It is also helpful to know whether you will be doing work on commission as ordered and deal with the stress of time commitments or selling the items after you make them in the time between other activities of daily living.

    Zoe, good luck on whatever you decide. It is just my personal experience that trying to make items to sell while holding down a full time job often created stress and removed the enjoyment of the activity.
    Last edited by sweetana3; 10-22-17 at 4:05pm.

  9. #9
    Senior Member herbgeek's Avatar
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    What is SCORE?
    Stands for Service Corps of Retired Executives.

  10. #10
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    Thanks all, mostly i would create about the same amount of stuff whether i sell it or not. It is for fun and mental health. A lot of yarn is from goodwill unless i need a specific type or color. However my plan is to keep track of this money and put in savings specifically for silent retreat. I have earned close to $150, and i need about $500 i think. Very low stress on my part, I have other options. I did make some of the octopus toys last year and they took a week outside of work with some self discipline but not high stress, in other words no crochet injuries

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