Jump to content
C0MRAD

Selling Baits

Recommended Posts

I make my own baits mostly just for myself but I also make some for a few guys in my club.  I sell to them at cost.  More recently word has spread and others have started asking me to make them baits.  I've been making some profit on those orders but not much.  This got me thinking about what I'm allowed to sell and what I'm not.  (lets just forget the fact I don't have a business license)  I'm pretty sure I'm not allowed to sell senkos using the official senko mold from Do-it, but what about other molds?  Is everything else fair game to sell?  Some of the molds out there are obviously rip-offs of name brand baits (like the BT roboworm copy for example) and I'm curious to know if those molds are off limits for selling baits also. 

Link to comment
Share on other sites

Most any of the mass produced molds out there doesn't step on any patents except for some the the molds coming from the Ukraine such as the D-Bomb & Pac Chunk molds they are offering. Most of what you'll have to look for is name Trademarks. But my advise would be, if you're going to sell baits for profit you'll need a business license. All it would take is one unhappy customer to turn you in & it'll end up costing more than it's worth. 

Link to comment
Share on other sites

Not all states or jurisdictions require a business license, per se. Here's a state by state SBA website that lists what's needed in licensing to start a business. Remember, we are all obligated to pay taxes. Sales taxes, personal income taxes, and the dreaded 10% federal excise tax. Here's the link.

https://www.sba.gov/starting-business/business-licenses-permits/state-licenses-permits

Link to comment
Share on other sites

You still have to file for a federal tax ID #. After federal you have to file for state tax ID for sales tax. Most wholesale companies will want a copy of your state tax ID. They usually just ask for the state ID because you can't register for state ID without a federal #. But in some cases they will accept the federal ID. But I do know a federal ID is required regardless of any state. Been filing for my company for the last 20 years.

Link to comment
Share on other sites

Not a tax expert. Doing business as a sole proprietor doesn't require a federal tax id number,  SS number works. Not all states have sales tax so don't always need a State tax id number in every state. Some states allow registering your business name. Your City or County may require a Business license.

Link to comment
Share on other sites

Howdy yall!

I'm new to this forum but not selling things you make.

I make and sell a jalapeno corer called the EZ-Corer at craft shows and street festivals.

the biggest hassle i found starting out was collecting sales tax, the way around that is to add it into the price.

i sell an EZ-Corer for $6, i know in Texas .50 cents is going to sales tax. it is so much easier than having to mess with change.

if someone asks what about tax you say ITS INCLUDED, just don't say there is no tax.........(bad idea, that's another story)

 

Link to comment
Share on other sites

The irs may not come after you for making a few bucks on baits,  What ya gotta watch for is the excise tax. When you start advertising and running websites, your on the hook.

I don't know how guys are selling 10 count bags for 2.50 and paying of .25 in excise tax myself. When you sell the baits you manufacture retail,  you get the hammer, paying it on retail pricing. You really cant even wholesale it to a retail company you own legally. 

I have heard minimum fine is 10,000.00

Link to comment
Share on other sites

Like the previous poster said, a quick call to your tax person will answer all your questions.  

Why not just come up with your own names for baits?  No need to steal others names they worked hard to bring to market.  Also decent packaging goes a long way.

Link to comment
Share on other sites

On 4/29/2017 at 10:57 AM, zx250 said:

Unless you get really big, sell them.  I would not advertise just go word of mouth.  I don't think the IRS will come after you.

 

Incorrect! It only takes one legitimate businessman to inform the I.R.S. of your "under the table" operation and they will investigate you. The interest and penalties  may far excede what you owe.They want their 10% excise tax on gross sales.BTW- the 10% excise tax you pay is deductible from for gross income when you file year end taxes.

  • Like 1
Link to comment
Share on other sites

2 minutes ago, smallmouthaholic said:

 

Incorrect! It only takes one legitimate businessman to inform the I.R.S. of your "under the table" operation and they will investigate you. The interest and penalties  may far excede what you owe.They want their 10% excise tax on gross sales.BTW- the 10% excise tax you pay is deductible from for gross income when you file year end taxes.

Deductible yes, But still comes off your bottom line. It is still a expense of your gross sale number.

Link to comment
Share on other sites

2 minutes ago, smallmouthaholic said:

Not a pissing match @ all. Simple FACTS about selling baits and operating a legitimate business.

 

Exactly...

Simple facts... That 95% of people are unaware of. Tax man don't go by the premise,  easier to ask for forgiveness then permission. LOL

  • Like 4
Link to comment
Share on other sites

On 5/1/2017 at 5:58 AM, Baitjunkys said:

 Even the excise tax laws say you pay on baits value if you give them away for free. 

Pleas explain. I am unfamiliar with this. Why is making plastic bait subject to an excise tax? If I buy liquid plastic have I already paid excise tax or am I obligated to pay it Directly to the IRS?  I have never heard of this. I thought excise tax was tax on gasoline.

Link to comment
Share on other sites

10 hours ago, BassHack said:

Pleas explain. I am unfamiliar with this. Why is making plastic bait subject to an excise tax? If I buy liquid plastic have I already paid excise tax or am I obligated to pay it Directly to the IRS?  I have never heard of this. I thought excise tax was tax on gasoline.

https://www.irs.gov/publications/p510/ch05.html

  • Like 1
Link to comment
Share on other sites

Thanks Baitjunky,

Ah. Never knew that before. I'm sure they say all the money goes to wildlife management or something.

 

Sounds like your intimately familiar with that section of code!

 

 

Edited by BassHack
  • Like 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...


×
×
  • Create New...
Top