Ok. It seems I have opened a can of worms here. I am not running a business. I just wanted to sell some of my lures to pay for my materials that I buy when I make them. This is just a hobby...pastime...something to do in my spare time...because I enjoy it...or whatever! I really don't need a reason to want to carve fishing lures. If the IRS is going to tax me 10% for selling a few lures here and there, I just won't sell them. I already have a fulltime job. I don't make lures to make extra money as a source of income for food or household bills and I already pay my fair share of taxes. If the day ever comes that I decide to make lures and sell them as a business, then I will register with IRS form 637 and use form 720 to pay the taxes quarterly. Until then, I will just make more room in my shop for lure bins.