Any attorney's or legal advisors out there know how much you can earn making and selling small crafts before the IRS would actually consider it a business? I was thinking about selling some of my hand made crafts to area stores, etc, but I want to do it correctly and "by the books". Any suggestions would be greatly appreciated ! Thank You.
2007-07-22 14:00:07 · 4 answers · asked by Bird lady 4 in Business & Finance ➔ Small Business
I am a crafter myself. The rule is, if you have a "hobby" you can make monies but it must be reported to the IRS and if you make more than $800/year it becomes a business.
At least thats my understanding, maybe a lawyer will say different, but I don't think so.
2007-07-22 14:03:52 · answer #1 · answered by Ann S 3 · 0⤊ 0⤋
Sell item for CA$H only, you can't trace cash sales. If someone pays with a check, then tell them to write the check directly to you, and not the business. Never write reciepts either.
This is a way to get around IRS.
2007-07-22 15:27:53 · answer #2 · answered by shelbeth 1 · 0⤊ 0⤋
I started some small crafts, (hand weaving).
I placed items in local stores in tourist areas.
The store takes a commission on sales, & collects taxes.
You could also try flea markets & craft sales.
Just keep track of supplies & sales.
2007-07-22 14:08:57 · answer #3 · answered by Robert S 7 · 0⤊ 0⤋
a million. do your homework very intently. you ought to understand the retailers properly. 2. make a funds. how plenty you want to invest , optimal turnover. 3. you ought to larger hit upon a prtner who've some contacts . it incredibly is maximum serious to commence your organisation. 4. you ought to commence ebay or on line organisation first to get some reports of organisation, this might properly suited your mentality to greater wholesome the organisation.
2016-09-30 11:53:57 · answer #4 · answered by ? 4 · 0⤊ 0⤋