Crafts
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Selling your crafts

Do you have to have a license to sell your crafts online? I am sewing together little monsters and things like that, and I'd like to sell them, but idk if I have to have a license....
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Re: Selling your crafts

  • I don't believe so.  I was selling knit things on Etsy for a long time and never had a license.

    However, if you think you're going to be doing at least a moderate amount of business, it's not a bad idea to get a tax identification number for income reporting at the end of the year.  It's super easy to get one on the IRS website (seriously, I do these applications for estates about once a week).

    ETA: Link

    image
    Knitting Blog
    Updated 3-12
  • imageReinedumonde:

    I don't believe so.  I was selling knit things on Etsy for a long time and never had a license.

    However, if you think you're going to be doing at least a moderate amount of business, it's not a bad idea to get a tax identification number for income reporting at the end of the year.  It's super easy to get one on the IRS website (seriously, I do these applications for estates about once a week).

    ETA: Link

    Ditto. We have a tax ID and we pay sales tax to the state.

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  • I don't believe you have to have a license, but my dh doesn't want me selling anything handmade online without incorporating - afraid of those people who are sue-happy. Not saying I make things that are dangerous or anything, but people can get a little crazy and I wouldn't want to lose my house over a $10 sale I made online...
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  • Does having a tax id number simply make it easier to claim your sales on the tax form or can you then charge sales tax on your items? (I sell things on etsy.com)
  • I don't have a lot of experience with sales tax--I think that mostly applies to items sold within your home state and then if someone out of state buys something from you, they're supposed to report it and pay the taxes with their own state income tax return.  At least, that's what I got out of a conversation with my accountant husband as it applies to Maine law.  You might want to check the tax laws in your own state.

     

    image
    Knitting Blog
    Updated 3-12
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