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How do you go about selling homemade crafts for profit?

I am very creative and crafty. I love to paint and personalize wooden objects, hatboxes, and pictures. I love making jewelry and flower fairies that I learned to make from a kit. Everyone is telling me that I need to start taking orders and selling my crafts for profit to help me have some extra cash as a new homeowner and young adult. My only question is how to start or even going about selling things in a legal way. Can I sell my crafts on ebay without a license? Do I report my expenses and profit at tax time? How do I go about getting a license? How do I determine when I need one? Can I make my own website to sell from without a license? Please help me!!!

what a great idea, it's awesome to find something you love and get paid to do it! You can sell that stuff on ebay without a license, but it may be worth it to get one (being a business, you can charge more than just personally doing it on ebay). If you decide to go with ebay, you will have to file what you make as a profit when you file your taxes in 2009. People will say you don't have to, but if you want to do the legal thing, you need to.

That being said, I'd hold off on ebay... go down to your court house and get a business license. Also get a resellers license (look it up and find where to get one near you, every city is different) and an EIN (free, just call the IRS or go to IRS.gov). As long as you don't name your business, you keep it "jane doe" then you'll be good there. Seems like a lot, but it's actually not too pricey... maybe $50 for it all? My fees were waived for the business license and i think my resell was free too... don't remember... once you get that resale license, you'll get monthly prepayment forms and you'll pay your taxes monthly, then if you overpay you get money back. Sounds complicated, and it is, but worth it.

The reason you'd need a business license/ resale license is if you're going to do farmers markets... which i might suggest (but i don't know your town). People love to shop local, and you can have business cards, brochures for people to order in the future, etc. It is $50-$70 a week, but if you do it for the whole summer they cut you a deal, and it may be worth it. Then you don't have to do shipping and play the ebay waiting game.

You can also create an online store where people can buy directly online (but then you're shipping again, if that's okay with you). You can pay to be on google ads, and there are the sites where you only pay per click.

Other ideas on how to sell your product is asking if local shops will carry your product for commission. You can offer to pay a percentage of what you make back to the store so they can get like 10-30% of your profit in exchange for forking up the space.

You can also hand out brochures everywhere you go. I say brochure so you can have pictures of the work you do, and the rates: what wouldn't fit on a business card. Every time you meet someone new, give them one! Go somewhere public? ask if you can leave a few.

Starting your own line of something is fun! Good luck, and i wish you the best.

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