Mannie Posted October 9, 2012 Share Posted October 9, 2012 Curious... should a hobbyist sell their candles? And do they need to charge tax if they do. Quote Link to comment Share on other sites More sharing options...
classiccandle Posted October 9, 2012 Share Posted October 9, 2012 I can't speak to whether a hobbyist should sell their candles. I think that's up to the individual. I will however say that if your heart isn't in it then I would counsel against it. As for sales tax, if you sell something you MUST collect sales tax unless the person/business you're selling to is a wholesale account or you're selling over the internet. If someone purchases your goods over the internet and they live in the same state as you you must collect sales tax. Quote Link to comment Share on other sites More sharing options...
blacktieaffair Posted October 9, 2012 Share Posted October 9, 2012 Ok this is just MY opinion : I think when a "hobbyist" starts selling, they aren't a "hobbyist" anymore. I've gotten some of the most amazing things from people who just did items ( like crochet, build with wood, quilt, etc ) from hobbyists, and I'd LIKE to think that when you start doing something as a business and selling it, you tend to take more care with it and the quality of the work,.....but.... at the same time, I've bought a lot of stuff from "professionals" that truly needed to do better work. As for the sales tax you have two options.. include it in your price and pay it that way........ or don't include it.....and pay for it at the end of the year. But it's a "must". Quote Link to comment Share on other sites More sharing options...
JI Posted October 12, 2012 Share Posted October 12, 2012 I agree. You are maybe ready to take it to next level if you are wanting to sell. To collect tax you probably need to register your business. Do not let it overwhelm you. The steps are straightforward. Small business association and state gov usually hsve great info. I am always surprised how man people in "craft" business fail to register , skip sales tax etc. The risk of it coming back to bite you is too big (in my opinion). Quote Link to comment Share on other sites More sharing options...
chuck_35550 Posted October 12, 2012 Share Posted October 12, 2012 I had our accountant to draw up an LLC and got a Federal and State tax number. I file my taxes each month on line and include the tax in the price of the product (you're not supposed to do that) it is a pain in the rear. Our state demands a state license, county license and a city license for any city that you sell in. I paid the accountant to keep up with it for a while and then they told me I could do it myself. I still let them do my taxes. My greatest concern was keeping it totally separate from my home and other business. I have a bank account that keeps all that money separate and never mix the two. Its really not worth it but I still hang in there; you never know. HTH Quote Link to comment Share on other sites More sharing options...
blacktieaffair Posted October 12, 2012 Share Posted October 12, 2012 I know what you mean. I was surprised when I moved back at all the different license we had to have. The city and state I could understand but the county one got me.And that is why I wish we had a Lotto lmao to cut down on some of these dang taxes here. It's crazy! Quote Link to comment Share on other sites More sharing options...
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