What ,if any licenses do I need to turn my crochet crafts into a business?

Question

I live in Chicago and I'm overwhelmed with copyrights (meaning if I go on Ebay and sell my crochet items, how will I know if the patterns were copyrighted?),doing business within the city, sole propriorship versus a home base business. Trying to persue this could cost lots of money and I have a very limited budget not to mention this is extremely time consuming because there are so many avenues out there. Everyone tells me I should/could sell my items ,I 've been hearing this for years and frankly I could use the money. Just the " first" step to get started is what I need...Any info would be appreciated

Answer 1

Hello Fellow Crocheter!

I have sold a few items on eBay that I have crocheted, and I have never worried about copyrights or such. You aren't selling the pattern as your own design, you're simply selling the craft.

In Minnesota, I can sell up to $600 without claiming it as income on my taxes. Anything above, and I would have to file for a tax I.D. Of course, you'll need to talk to a tax professional if you anticipate your business growing large.

As far as the copyright laws go, don't worry about that unless you're selling patterns. If you are selling your own patterns on eBay then make sure you copyright them beforehand so someone doesn't try to scam you down the road.

First step; get registered on eBay. Browse through the crochet items category and simply email other sellers what their experiences have been. Some are power sellers and have to adhere to tax laws and file taxes just like a business, but others just sell here and there as a hobby (as I do.)

Answer 2

If you made something from a printed or online pattern, you can assume it is copyrighted. I know your friends mean well, but in reality, nobody wants to buy something made from a pattern or kit. Design your own. Your designs are copyrighted if you simply declare it so, but there's not much you can do, as an individual, if someone copies it. Just be ready with the next cutting-edge design. If you're a good designer, you may just want to sell the patterns. Often with crafting, the fun is in making the item, not owning it.

The only license you need is a state tax number. This can get you discounts on yarn and supplies, or at the very least make it so you don't have to pay sales tax on what you buy.

Go sole proprietor unless your product would have liability issues that could result in someone trying to sue you.

I have found that decorative items don't do well online. If it's also useful, you will have better luck.

I started on Ebay with my sewing stuff. It's great for testing new items to see what will sell, and to learn how to pack and ship. But I have used my own website for several years now.

I have my taxes done at H&R block. I just don't fool around with that stuff. They gave me a notebook with everything that I am supposed to keep track of, like electricity and even the mortgage, and then the tax guy figures out what the percentage is that you can claim on each thing.
.

Answer 3

Regarding copyright, if you contact the designer sometimes he or she will allow you to sell an item made from his or her design. It can't hurt to check. Sometimes this information is on the person's web site as well. Be sure to give all the needed information when inquiring - such as where you are going to sell it, how many, etc. If you do get permission, there may be restrictions - such as you may not sell the pattern itself and you might be asked to note in the description of the item "designed by..." and possibly a web site or some other information.

Answer 4

There are a variety of books you can check out at your local library. The best one that I've found is "crocheting for fun & profit" by Darla Sims. It is currently out of print, and if you're looking to purchase it, it will run some major bucks. But again, your local library may be able to obtain it for you.

While at your local library, inquire if they have other books on craft businesses as the same principles apply. They may also have VHS/dvds that explain business practices in your state (as mine did here for the state of CT).

Your state/town may have programs to help you launch your business. Since every state is different I cannot assure you, but then again, it doesn't hurt to check. You'll also want to look into accounting practices and find an accountant accustomed to the business you have in mind. Darla's aforementioned book, as well as the craft business books will go onto this type of information.

Good luck!
~Dee Stanziano
CYCA Certified Crochet Teacher

Answer 5

I don't think you need a copyright if you are using your own creation, but it really is a pain when it comes down to patterns. If you're using a pattern, someone else's design, then it belongs to that person. You have to create your own designs and patterns.

Why not just create a website and just sell your stuff w/o ebay?

I knit and eventually, that's what I'm planning on doing and I'm going to sell my stuff at crafts shows.

Answer 6

Edit: you may declare the extra money. not doing so is fraud. besides, in case you sell somewhat a style products, your city could require you to collect revenues tax besides. sure, that's vauge. while you're making money and that's not a organization, you coach the income on 1040, line 21 and the charges (in case you may itemize) on time table A. IRS pub 535. not-for-income activities in case you do not shop on your organization or investment pastime to make a income, you may't use a loss from the pastime to offset different income. activities you do as a pastime, or specially for sport or sport, are often not entered into for income. The decrease on not-for-income losses applies to persons, partnerships, estates, trusts, and S companies. It does not practice to companies different than S companies. In determining whether you're donning on an pastime for income, quite a few aspects are taken under consideration. no person element on my own is decisive. between the climate to evaluate are whether: You shop on the pastime in a businesslike way, the attempt and time you place into the pastime point out you have the desire to make it worthwhile, You remember on the income on your livelihood, Your losses are as a results of situations previous your administration (or are well-known interior the beginning up-up area of your form of organization), you regulate your techniques of operation in an attempt to strengthen profitability, You (or your advisors) have the understanding had to maintain on the pastime as a efficient organization, You have been efficient in making a income in comparable activities interior the previous, The pastime makes a income in some years, and you will anticipate to make a destiny income from the appreciation of the sources used interior the pastime. playstation , in case you at the instant get EIC, checklist it as a pastime. The IRS gets testy while your unproveable pastime income will strengthen your EIC.