Eventually, after many beads are strung, wires are bent, or metals are soldered the average jewelry maker starts to consider starting a jewelry business. The idea of owning a jewelry business at first may sound like a good idea. You could make a little extra income. You could travel to all those cool art shows. You could sell your work in prestigious art galleries. It sounds like fun, right?
Then reality hits. His name is Uncle Sam, and he’s usually trying to get more money out of your pocket. Licenses, taxes, fees, why bother? That’s a lot of money that could be spent on beads and wire. Who’s it going to hurt anyway? Who’s really going to know?
I’ve been asked a number of times by reader who are considering starting a jewelry business whether or not it’s "really necessary" to go through all the legal hassle in order to sell their jewelry. Of course, this is a personal decision. Many artists and crafters sell their work and have no tax identification (ID) number or license. That’s their choice. For myself, I prefer to follow the rules for a couple of reasons.
Reason 1: It’s the law, and as a law abiding citizen, I try to do my best to follow all laws. I may really hate the law (which is often the case when it comes to costing me money), but I think it’s the right thing to do. So, I do it.
Reason 2: I know I’d get caught. Rarely have I ever challenged any rule whether at school or work. However, the few time I have, I’m the one that gets caught. Remember eraser fights in grade school? Thirty kids would be plummeting each other with chalk laden erasers. Well, out of the thirty kids I would be the one caught with an eraser in her hand when the teacher walked in. That’s the story of my life.
Reason 3: They - the city, county, state - will try to hunt you down if you don’t have the proper paper work. I remember being at one show where state workers came by each booth to check if we had a tax ID number and knew how much tax to charge. It was a relief to know I was not holding an eraser in my hand.
Reason 4: Believe it or not, there are reasons for all these stupid fees. I haven’t figured out all the reasons, but I know of a few. For example, in order to able to purchase supplies and materials at wholesale prices, you need to have a tax ID number. Often a vendor will require you to fill out a card with your information on it that he then keeps on file. He may even require that you send a photocopy of your tax certificate.
Reason 5: It’s just not worth it. Trying to avoid these legal requirements fees can lead you into trouble. This could equal more fees at the least and jail at the most. So, is it really worth it? A few hundred dollars a year can keep you legal and help you sleep worry free.
There really is a lot to consider when starting any business. Legal issues are probably the most difficult to deal with since many of us don’t have a business back ground. So, before you take the plunge, educate yourself about the legal requirements of starting a business. Call your local zoning board. See if there are any resources available through your local community college or chamber of commerce. Visit your local library, and see what they have to offer. Finally, it’s up to you to decide to be or not to be legal.
Comments? Questions? Ideas? Share them on the jewelry making forum.
All graphics created by Tammy Powley.
Then reality hits. His name is Uncle Sam, and he’s usually trying to get more money out of your pocket. Licenses, taxes, fees, why bother? That’s a lot of money that could be spent on beads and wire. Who’s it going to hurt anyway? Who’s really going to know?
I’ve been asked a number of times by reader who are considering starting a jewelry business whether or not it’s "really necessary" to go through all the legal hassle in order to sell their jewelry. Of course, this is a personal decision. Many artists and crafters sell their work and have no tax identification (ID) number or license. That’s their choice. For myself, I prefer to follow the rules for a couple of reasons.
Reason 1: It’s the law, and as a law abiding citizen, I try to do my best to follow all laws. I may really hate the law (which is often the case when it comes to costing me money), but I think it’s the right thing to do. So, I do it.
Reason 2: I know I’d get caught. Rarely have I ever challenged any rule whether at school or work. However, the few time I have, I’m the one that gets caught. Remember eraser fights in grade school? Thirty kids would be plummeting each other with chalk laden erasers. Well, out of the thirty kids I would be the one caught with an eraser in her hand when the teacher walked in. That’s the story of my life.
Reason 3: They - the city, county, state - will try to hunt you down if you don’t have the proper paper work. I remember being at one show where state workers came by each booth to check if we had a tax ID number and knew how much tax to charge. It was a relief to know I was not holding an eraser in my hand.
Reason 4: Believe it or not, there are reasons for all these stupid fees. I haven’t figured out all the reasons, but I know of a few. For example, in order to able to purchase supplies and materials at wholesale prices, you need to have a tax ID number. Often a vendor will require you to fill out a card with your information on it that he then keeps on file. He may even require that you send a photocopy of your tax certificate.
Reason 5: It’s just not worth it. Trying to avoid these legal requirements fees can lead you into trouble. This could equal more fees at the least and jail at the most. So, is it really worth it? A few hundred dollars a year can keep you legal and help you sleep worry free.
There really is a lot to consider when starting any business. Legal issues are probably the most difficult to deal with since many of us don’t have a business back ground. So, before you take the plunge, educate yourself about the legal requirements of starting a business. Call your local zoning board. See if there are any resources available through your local community college or chamber of commerce. Visit your local library, and see what they have to offer. Finally, it’s up to you to decide to be or not to be legal.
Comments? Questions? Ideas? Share them on the jewelry making forum.
All graphics created by Tammy Powley.
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