Hi everyone, I have just recently ventured out on my own to start my
own glass jewelry business. I have a line and a press kit ready to go
and am planning on contacting a few stores in New York to see my
stuff.
I wondered if anyone had any advice or could share their experiences
with me who has been in a similar situation. Just things I should be
prepared for, keep in mind etc.
Also, if I get larger orders than I can handle alone, what is the
best way to go about expanding my studio to hire people. Does anyone
have any internet resources they have found helpful in guiding people
through a small business?
Thanks for any advice or
Kindest,
Kim Fraczek
Hello All, I am starting a small jewelry business out of my home. I
hope to sell some pieces to local shop, plus I have a couple
commissioned pieces to do. My question is, do I need some type of
license to sell? Also, what are the benifits of having a tax ID
number besides getting items tax free? I want to thank you ahead of
time for any responses. Jackie still dazed and confused in
Tennessee
Hi Jackie,
The license thing is up to you but also depends on what your sales
turn out to be. That is the legal approach! Years ago, in TN if you
reportable sales were $400 in a quarter(3mos) you could file State
Sales and Use Tax forms quarterly. Over that amount and you went to
monthly.
The point of all this is with the priviledge of a license comes the
responsibility of collection and reporting of taxes. In TN now, no
state income tax but the sales tax is high, high, high! I will not
get into THAT argument! LOL : ) Not only are state taxes required
by report but you get into the IRS, the partnership, sole
proprietor, etc., depending on your business. These forms must be
filled out and sent in on time at the specified time whether you
earn anything or not. This is part of the priviledge of having a
business license. If you want to ask some questions about it first,
you can try the state tax people of TN at this number:
1-800-342-1003. You will be taken through a voice mail thing and
sometimes it goes in a circle. I tried today to get the figures for
quaterly only reports and the minimum sales that requires a Tax ID
number but couldn’t wait “for the next available agent.” I think
option “5” on the touchtone phone is the one to get a real person,
perhaps, sometime, maybe eventually.
The license can be obtained at your local county courthouse.
Advantages? If it is to save paying sales tax, think again. Some
businesses will not fool with this since they have to maintain
records with your Tax Number to clear their end on the tax thing.
To enable you to possibly buy from wholesalers? Think again on the
volume of product you can and do want to buy. Opening dollars can be
high on mimimum orders. And, companies are well aware of “shadow
businesses” such as some clubs and groups of buddies set up to try
to get stuff at a better price. Wholesalers and distributors for a
large part want to see some credit reports, not just a license and
some proof you are a business and not a “store front” operation. I
know that is not what you are even thinking but this is to make you
aware.
I would say, if you stay under the limit of sales for required
collection and reporting of sales and use taxes, you are better
without the license. A business is a business and lots of paperwork
goes with it. Even if you just wholesale you items the state reports
must be filed. Food for thought! Thomas. been there.
@Sp.T