Flea markets and crafts shows have become an important outlet for many small businesses. Increasingly, small businesses are refining the goods that they make and sell. While these types of businesses usually start out as a hobby, there are some steps that you should take to ensure that you are selling goods legally with your craft show business. Learn more with our craft show and flea market business plan.
First things first: Find out if you are operating a taxable business. This is important because if you are in fact operating a business, you will need an Employer Identification Number (EIN). Applying is simple, and in many states, you can complete the application online. After you obtain a tax ID number, you’re through with the federal government for the time being.
In some cases, you may have to register with the state in which you are selling your goods. To find out more information, you will have to check the individual state rules to apply online or by mail. Regardless, you will need that EIN number to register. You may need a permit on the local level. Many states require permits so that you can collect sales tax. To determine if you need a permit, visit your state government’s business portal on Business.USA.gov. Additionally, use the flea market or craft show organizers as a resource. Most likely, they will be able to answer questions about state permits.
You will need to report profits and expenses on your Federal taxes. Some states require you to pay taxes on all your sales, while others have levels that must be met first. Sales tax law follows the rates and procedures for where you are selling the goods. If your business is located in Dallas, Texas, and you sell your goods at a flea market in Oklahoma, you will need to follow Oklahoma’s rates and procedures.
Many successful small businesses began as a booth, or even just a table, at a flea market or craft show. No matter how humble the roots of your business are, remember, as your company grows, the sky could be the limit if you have a detailed business plan to guide your future growth. Contact us today for more information on making a successful business plan for your craft show or flea market.