Trying to decide if we should get an EIN

mrsmacgiver
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A tax ID number.

My husband and I are wanting to start a small business. It would be a high- end type of resale pop up shop- like at artisans and farmers markets which are very popular in our area. I know resale makes you think garage sale but these are all nice items, very good condition or never used. Real crystal vases, a beautiful dress with tags still on it, etc.

They're not selling on apps like FB market place and the like. I think they're more likely to sell in person, especially in the areas where we would be selling.

My mother in law also makes jewelry and paper products by hand. They're cute and unique. These we haven't tried to sell yet.

All of the farmers and artisans markets I have come across require you to have a tax id number. I don't know anything about what kind of tax implications this would mean for us. If we have an EIN but don't make any money from this, do we still need to claim it on our taxes? I have those kinds of questions.

Do any of you all do pop up shops or try to sell your crafts?
Lotus
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I've done them in the past. I re-purpose refinish furniture. Its been a while. I avoid the FB buy sell sights for anything of value. People seem to want things on those sights for next to nothing. Ive also rented floor space in store fronts.

Throw* up a picture if you do start doing booths Id love to see what you have going on.
mrsmacgiver
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Lotus wrote: Mon Jul 09, 2018 11:13 am I've done them in the past. I re-purpose refinish furniture. Its been a while. I avoid the FB buy sell sights for anything of value. People seem to want things on those sights for next to nothing. Ive also rented floor space in store fronts.

Through up a picture if you do start doing booths Id love to see what you have going on.
Did you feel like it was a success?

I have no idea how to even make the booth look cute or even what I need. But I'll totally take pics if I do it. I can even take pics of my MIL's jewelry for you when I get the chance.
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I enjoyed what I was doing at the time. There is an art to making the booth look intimate and personal. Containing it somehow helps tremendously. Just look around at what others are doing you will find your style.

Was it worth it? Yes. Ask yourself this, whats the worst thing that could possibly happen? Does the fear of [failure] that outweigh the longing desire of "what if"?

Its a learning curve sure but definitely not rocket science. The community of vendors will help you.

I dont recall the license being expensive. I'm excited for you. Even if it takes a while for you to pull the trigger. Be brave!
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MonarchMom
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You need to get the EIN so you can be at higher-end shows - most require proof of sales tax certificate. Choose a name for your business that is generic enough to allow you to switch from jewelry sales to re-selling to other crafts if needed, something like "Donna's Closet" or "Style Central" - keep it simple and easy to spell if people want to find you online. Make sure you research both the business name and a web site name. You don't want a business name that you can't register as a domain name because it is already taken.
Once you register your business, you will need to keep good sales records, collect sales tax where applicable in your state, and file quarterly sales tax payments. It is not that difficult.
If you dedicate a specific area of your home to the business for office use, storage, packaging, etc., you may be able to claim a home-office deduction. You don't have to turn a profit every year to use this. Keep things simple, keep good records of all supplies, costs (web site, business cards, etc.) and you will be fine.
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