LumberJocks

Reply by Loren

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Posted on Buisness vs Hobby

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Loren

4877 posts in 1816 days


#1 posted 374 days ago

You can probably get a resale number and say you sell at
craft shows which will get you away from inquiries from
agencies looking for revenue. State laws vary of course
but in general there are regulations having to do with
a flow of drive-up customers to the home. Some concerns
have to do with parking availability in denser population areas.

You can probably set up something that keeps your costs
very well controlled and won’t get you in trouble if you
keep a low profile, which isn’t usually difficult for a
1-man shop.

Do consult an accountant. With a state resale number
you can buy from some suppliers who wouldn’t otherwise
sell to you and you can also buy stuff like Barge contact
cement, which isn’t sold to the public in some states.
Anyway, you just have to pay the sales tax once, so if
you buy materials tax-free you have to make something
and sell it and collect tax within a certain period, probably
the tax year, but the specifics your accountant can advise
you on.

A non-CPA accountant will probably charge you less for
the consulting and help with the paperwork, if that
matters to you.

Obeying noise ordinances is a good idea, especially with
the routers and portable planers and benchtop table
saws.


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