Do I need a tax ID number to sell crafts at a craft show?
We make crafts at home and want to sell at shows, do I need a tax ID number for that?
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No.
What makes you think you need permission from anybody for your “pursuit of happiness”? Just live your life and if there’s a problem 5 or 10 years down the road (and I can guarantee there won’t be. After 2 more years, they’re GONE), then deal with it then.
Depends on the state, but generally yes. When I went to a conference in Phoenix (from Texas) I had to get a short term permit. In Texas where I was selling crafts, I just had one for various purposes and collected sales tax for them.
As far as federal tax is concerned – you have to keep records and report your income and you have to make a profit for a certain number of years (like 3 of 5) to be able to take expenses off the income. Otherwise it is a hobby and you have to pay on the income without deductions. But your federal tax id is your social security number.
I do craft shows in Michigan. Here I had to have a sales tax license which you can’t get without a FEIN (Federal Employee Identification Number). the best part about it – it’s free. You don’t need much info and it take less than 3 minutes on the government site. Check with your state and see if it’s necessary.
Here’s the link if you need one…
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
That would depend on the state you live in.. I live in the state of Michigan. and you are sopose to pay sales tax.. Some shows require you to have your sale tax License with you at the show and other shows do not require you to have one at all.. you can go and get a temp License from your state office.. for just that show.. and send in your tax. OR YOU CAN GET THE License AND SEND IN THE FORM MONTHLY WEATHER YOU HAVE SALES OR NOT …
It depends on where you live, but as a general rule of thumb: Yes. If there are tax people at the craft show and you don’t have one they will shut you down unless you can prove that you make less than a threshold amount of money. It varies from place to place and it can be as little as 500$ a year to as much as 5000$ a year. And sometimes different cities and municipalities have different rules. It’s always a wise investment to find out what licenses you need a get them rather than risk being shut down and losing any money you have made. There’s another reason to get proper tax papers: a big benefit of a tax number is that you can save boatloads of money by buying craft supplies in bulk wholesale. That alone makes the license a wise investment.