At what point do you need to get a Business License/Tax ID?

[Fullmoon]

Thanks for the recommendation
Probably a stupid question, but how do I get a tax ID?

[CraftyChef]

You can google "(your state) dept of revenue. They probably have a section on sales tax or "starting a business" or something. You can call them, they probably have a main number listed, and ask how to get a tax I.D.; I believe I got mine over the phone.

[Fullmoon]

Oooh I see! That's really simple! I'll make a call soon. Thanks!

[mranaedesigns]

My bookkeeper informed me that I needed to start claiming/paying taxes if I make over $250 a year. I didn't my first year of crafting, but the second year exploded!

I live in NC and I got a tax id number easily, for free, online. I also registered my company name & filed taxes. I also need to register in the county seat if I want to participate in large fairs/shows. I haven't done that yet because it's $250. I can wait until I'm making the big bucks! 

It's been scary doing all this legit stuff but so exciting & rewarding.

It may be different in your state, but I would at least start inquiring once you make a couple hundred bucks.

Good luck!

[Fullmoon]

I'm thinking of just registering under WA state as a sole proprietorship because its like 15$ for the license and you get a tax ID. I'm pretty sure you have to register under a company or corportation in WA state for a tax ID,I've been looking into it and have yet to find a way around that.

[Nicoleeoliee_4_Life]

hokay so.  Here's the dealio

I'm thinking of either starting an ArtFire or Etsy, but the big question is whether or not I need a tax ID number, or does a website like that take care of it?  As a teenager, I'm assuming my parents would have to help me, but I'm not too sure.  I live in VT, so I'm not sure if there are the same laws regarding this kind of stuff, but I would like to know what kind of business (if any) I would consider it for a tax number.  Help meeee 

[Nesse]

"Do I Need to Apply for a Vermont Business Tax Account? Any vendor selling items subject to the Vermont sales or use tax needs a Vermont Business Tax Account. This includes transient vendors coming into Vermont for short periods of time or vendors with no permanent Vermont address. You also need an account to receive exemption from the tax.

What is Taxable?
You must collect Vermont sales tax unless the sale is specifically exempted from tax by law. Examples of sales subject to tax are: Retail sales of tangible personal property - Any retail sale, lease or rental of tangible personal property in Vermont. Rental of equipment with an operator is exempt as a contract for personal services; however, the purchaser of the equipment pays tax at the time the equipment is acquired."

so, whatever you make, would be considered a "retail sale". how old are you? I'm not entirely sure, but I think there might be an age requirement to get a tax ID (I live in NY and got mine when I turned 18) so you might need to have your parents as "co-owners".

here is the website where I got the information. good luck!!!

[Ninkybink]

I recently filed for my LLC, tax id, and vendor's license via Legal Zoom. My goals with it are to be able to purchase at wholesale, and to hopefully grow the business over time to something that I can make profit with. As someone else mentioned, SCORE is a really great asset. I am planning to go to some of their meetings to learn more.

[Kodeekins]

The best advice I have is to visit IRS.gov and your state and city's OFFICIAL websites and read up on permit, licenses and taxes to make sure you are covered. If you see something you don't understand, call them and ask. The IRS is very eager to help to make sure you don't make mistakes. Same for state and city requirements!

[PeaceBlessingsandJoy]

Is the 250 dollar limit for how much you make to begin collecting/reporting taxes for everyone or does it vary by state? It sounds like there is a lot I need to read up on and learn ... SCORE here I come!