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4 replies to this topic
Posted 28 March 2009 - 01:43 PM
I know this is not a question about how to build baits, but it is realated to building them. I am just getting started in lure building and I was thinking eventually I might want to try and sell some lures because I know I will make more than I use and if I could make some money doing something I enjoy that would be great. I was wondering what kind of paperwork is involved in starting a business and what kind of tax stuff will I have to deal with?
Posted 29 March 2009 - 02:19 AM
A good question most of us faced that has been asked and answered many ways on this board. Suggest you search the threads for various business terms like profit, IRS, Excise, margin, profit, loss, hobby, etc.
Posted 29 March 2009 - 02:53 PM
I don't sell lures but think the paperwork, taxes, etc depend on a few things; how/where you market your lures, how many you sell, and how tax evasive you are! If you sell the occasional lure on Ebay, I doubt an IRS SWAT team is going to be storming your garage anytime soon. If you get a business license, file requisite tax forms, pay excise taxes, etc, (in other words, start a business) that's something else again. I don't think it's an issue until you begin selling lures in some volume. If and when, you can transition from one form to the other.
Posted 30 March 2009 - 12:40 PM
Yup- what BobP said, I would add that if you have an original,new
lure/tackle design with some protection if applicable, that would be a no-brainer reason to start a business.
If you do not have a new idea, then you better have some really
good marketing skills, or some original and outstanding color patterns
and finishes to set yourself apart from the pack who offer
the same lures and patterns for a dime per dozen.
With just a fair amount of differentiation from others you could make a decent but modest 2nd income.
Check out the IRS for Federal Excise Taxes for manufacturers if starting a standard lure- manufacturing business.
It is possible to come up with an original idea.....
Edited by Tonkabass, 30 March 2009 - 12:42 PM.
Posted 30 March 2009 - 01:13 PM
I think unless you are making really good money at it you could file any income under additional tips, wages, and other compensation on your tax form. Also, I think you could write off most of the supplies and equipment you use to make the lures you sell. I'm not a tax pro but that might be how I would approach it. You could probably talk to your tax preparer to get an idea.