quilterbee1 Posted July 1, 2012 Report Share Posted July 1, 2012 Hi, I have a question and need some advice please. I'm thinking of getting a business license to be able to shop Brewer,Checker and Houston Market. I do quilt for others but only 3 or 4 quilts a month. Is it worth it for me to get a tax free ID #? Would it save me money to shop Brewer and Checker? Thank you!! Amie Link to comment Share on other sites More sharing options...
ffq-lar Posted July 1, 2012 Report Share Posted July 1, 2012 Two things to look at-- 1--You will save money absolutely if you purchase wholesale. 2--You will spend extra money doing tax returns for your business, plus most states and the Feds make you actually show a profit after 4 years or you are considered a hobby, not a business. Penalties can range from paying sales tax on all your purchases to losing your business status. Then if you still operate as a business you get dinged again for operating an illegal business. If the money you save will offset the extra you will spend for an accountant or CPA, and if you can maintain a viable business, go for it. (As an aside--you say you quilt four quilts a month for money yet don't have a business license? It only takes one jealous acquaintance to turn you in to the county or state licensing agency and you may have a small mess on your hands. They will REQUIRE you to take out a license and pay past sales tax revenue with penalties. Just a thought....) Link to comment Share on other sites More sharing options...
iquiltit Posted July 1, 2012 Report Share Posted July 1, 2012 nah Amie it ain't worth it . I tried that route and it sucks. If someone turns u in they can't prove how many quilts you do. Just keep a private record just in case Carol:) I bought from Checkers I got better deals at walmart in less amounts of one color, instead of a whole bolt in one color Link to comment Share on other sites More sharing options...
ffq-lar Posted July 2, 2012 Report Share Posted July 2, 2012 With a bit of research (and maybe a shout-out to the forum members for some recommendations) you can find near-wholesale prices on line. Connecting Threads, Nancy's Notions, and Fabric Depot have lots of sales on fabric. Fabric Depot gives wholesale prices on wholesale quantities without a business license--which means whole bolts of fabric and large packs of needles, patterns, blades, etc. But well worth it if the shipping is reasonable. Sign up for these site's on-line newsletters and catalogs. Superior Threads is a consistent presence at all the big machine quilting shows with near-wholesale prices on thread and notions. One of my favorite sites is Sew Thankful--Tracy has some sale fabric and great prices on Superior thread. I just ordered some since she had no shipping costs on $100 minimum purchases. I couldn't pass that one up! Link to comment Share on other sites More sharing options...
aleksich Posted July 2, 2012 Report Share Posted July 2, 2012 Hi, Listen to Linda, she gives great advise. When I set up my business, the county did not recongize it as a business, just a cottage business, so no license to get. I did register my name with the state for the counties that I would be working with. I found that most venders would give me wholesale price when asked, buying bulk saves more money. Link to comment Share on other sites More sharing options...
Quilting Grammy Posted July 3, 2012 Report Share Posted July 3, 2012 It also depends on the state that you are in I asked the CPA that does our farm taxes and he said that I didn't need a state licence as what I do is considered a private service and I just have to keep track of everything. I don't sell batting or backing if I need to get some for a customer I pick it up at the store and give them that ticket along with mine and they reemberse me so no expence or profit there. The best thing to do is if you have a CPA then ask them what you need to do. Link to comment Share on other sites More sharing options...
quilterbee1 Posted July 4, 2012 Author Report Share Posted July 4, 2012 Thank you for all the advice, I knew someone here would know what to do ) I'm not going to bother with the whole license bit right now. I'm enjoying quilting for just me for the whole summer! So much fun :) Link to comment Share on other sites More sharing options...
Susanri Posted July 4, 2012 Report Share Posted July 4, 2012 Yeah, it's a hard one because it is a catch 22, I don't know how much money you can make to be a business or a hobby. Technically you have to pay taxes on both. I have a business incorporation set up right now and it costs a minimum of $2500.00 a year. Then collecting of taxes and reporting taxes. Its a real Quandry, and to purchase from most people you have to buy minimum and in larger quantities so I rarely do like the quilters above said I can usually find better sales to meet my needs. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.