Sales tax ID, you get that certificate as part of that.
Main thing is if you are selling items, you’re supposed to be collecting tax and filing. The comptrollers office has field agents that go to craft shows and can check those certificates (doesn’t have to displayed but must have with…I keep mine under the tray in my money box).
Don’t think this has been mentioned yet:
You need to keep track of WHERE/amount of sales if doing craft shows at various locations because you’ll have report based on location. You’ll need this for filing. There’s charts with codes. It’s easy. But it’ll save a headache if you keep track as you go
For example, I mainly sell at the renfair and sometimes from my house. The renfair is county only so just base state tax (6.25%) since out of city limits. But and transactions from my house are subject to Lewisville taxes. A craft show somewhere would be that city. Internet sales, you charge tax if they’re in same state as you (like I have to charge tax to folks with Texas addresses) but no tax if it’s out of state (until the law changes).
A dba is good for:
- protecting your business name (to a degree, because it’s location based)
- you HAVE to have a current dba to open a business account at a bank
Another general comment…you get going with your business, I think it’s a good idea to have a dedicated business account. Keeps things cleaner between business and personal money, taxes, etc
Nice things, dba is easy and cheap and lasts like ten years I think before needing to renew
Incorporation is another thing some do. Not a requirement. It can protect you from personal liability if there were business related issues arise. But there’s a whole whack of extra things you need to do for the corporate part of things
FWIW, I’ve never done the LLC thing and won’t at this point. Ymmv.
