Starting A Small Craft Business?
Bird lady asked:
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.
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Filed Under Small Business |
Tagged With Business Attorney, Irs, Legal Advisors
Comments
3 Responses to “Starting A Small Craft 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 $800/year it becomes a business.
At least thats my understanding, maybe a lawyer will say different, but I don’t think so.
I started some small crafts, (hand weaving).
I placed items in local stores in tourist areas.
The store takes a commission on sales, & collects taxes.
You could also try flea markets & craft sales.
Just keep track of supplies & sales.
Sell item for CA$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.