question for those with quilting business
02-18-2011, 10:46 AM
#1
Super Member
Thread Starter
Join Date: Apr 2010
Location: Oregon
Posts: 3,364
If you sell your quilts or quilting service, when did you take the plunge and actually have a business license? Was there a dollar amount of sales that made you decide that it was more than a hobby? Has it been worth it to you?
02-18-2011, 11:14 AM
#4
Power Poster
Join Date: Mar 2009
Location: Salem Iowa
Posts: 15,666
In Iowa if I sell straight to a customer I have to have a state tax license. If I make less than $5000 I don't have to report it. As for a business license I didn't have to file for one but I did have to choose a name for my business when I filed for a state license. I am allowed to use my SS # instead of having to have a business ID.
When I was selling to the gift store I didn't have to charge tax because the IRS said it was charged by the store owner. You have to be selling straight to the customer before you have to charge tax.
Don't know how this compares to other states.
When I was selling to the gift store I didn't have to charge tax because the IRS said it was charged by the store owner. You have to be selling straight to the customer before you have to charge tax.
Don't know how this compares to other states.
02-18-2011, 05:20 PM
#5
Banned
Join Date: Dec 2010
Location: Colorado
Posts: 1,376
I got my license as soon as I decided to quilt professionally. I did it so that I could register my business name with the state and so that I would qualify to buy supplies (batting, thread, etc) wholesale. It's worked out OK, even with the periodic reporting we have to do.
02-18-2011, 05:33 PM
#6
Power Poster
Join Date: Feb 2009
Location: Northern Michigan
Posts: 12,861
different areas have different rules concerning when it is necessary to have a license. you really have to check where you live to know when it is required. the town i lived in- if you wanted to have a booth and sell at a festival in town or even the holiday craft fair at the school each year you had to have a DBA.
you have to follow local laws concerning when they require a sales tax license if you live in a state that has sales tax- some areas if you sell more than 5 items in a year you need the license, some areas it depends on other things.
you have to follow local laws concerning when they require a sales tax license if you live in a state that has sales tax- some areas if you sell more than 5 items in a year you need the license, some areas it depends on other things.
02-18-2011, 05:55 PM
#7
Senior Member
Join Date: Aug 2008
Location: Wilbur, WA
Posts: 757
It's not only the state that you have to deal with, ANY income has to be reported on your federal tax return. I set up as a business from the beginning, since that was my intention. There are benefits to having a business: You get to buy wholesale, you can expense out certain expenses as part of your business such as classes on running your LA, as well as the cost of hotels and travel to shows, esp when you are taking classes at the shows. Talk to your accountant, and if you don't have one, GET ONE!!
(Certified Bookkeeper in other business...)
(Certified Bookkeeper in other business...)
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