Do you need a license to sell my art online?
I made a post before on here but ive done a bit more research and my last post raised to many questions in a non coherent way so im making this one now. If I were to start an online business on say Etsy where I sell my art would I need a license to sell it? And if I were to sell others arts with their knowledge and consent would the same rules apply? My last question is if i were to give a sum of this to certain charities what hurtles would come from that?
- Elaine MLv 76 months ago
Etsy reports sales, you'll need to report all sales on your taxes for the year.
Do you need a license? No. Etsy is nation wide, you don't collect sales tax on anything shipped outside of the state you live in. Sales IN the state you live in should have tax collected on the total amount, keep a record of that and that figure goes on your tax forms. You don't need a mobile sellers permit unless you're doing craft shows or other shows outside of your home (art shows, renaissance festivals, conventions, etc.).
- ScottLv 76 months ago
Why would I be selling your art online? Grammar matters.
- 6 months ago
yes when you do x number or more than $ 1000 in a business.
- 6 months ago
You do not need any sort of license to sell art.
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- A.J.Lv 76 months ago
You are selling artwork online. Artwork is a tangible physical item in your case, rather than digital that would require more digging.
I determined you need a business license.
Read a lot of what I offer. Contact a business development center.
If you sell anything without collecting sales tax, be prepared to pay it yourself.
Your county may also have license requirements.
If outside the city limits of Cincin.. you probably don't need their direct involement.
The links below include small business development that works confidentially in answering some initial questions. Call one of them.
When the money is small, you don't get noticed, but if it grows, you may get attention and owe fines on top of licensing. There is income tax consideration and sales tax.
You have write-off expenses. The business structure makes a difference.
There is personal or home businesses versus retail stores even selling out of your home. If you collect money for someone else, you are a sales agent and that is a business. Giving to charities may not be personal income tax deductible, but is this a personal or LLC or other incorporation. You may become an employee of your own business.
Again, it depends on the amount of money because even if you violate the rules, you operate "under the radar" until you get noticed.
Start a Business in Ohio starts here:https://business.ohio.gov/wps/portal/gateway/busin...
There is a startup guide.
Cincinnati has two small business development centers, but the fact that their web sites are dead links says the State of Nevada is a heck of a lot better than Ohio about help for you. I fixed links here.
Ohio SBDC at Clermont County Chamber of CommerceCincinnati4355 Ferguson Dr, Suite 150, Cincinnati, OH 45245513-576-5007
Union Institute & University - Ohio SBDC at the Greater Cincinnati Urban LeagueCincinnatiUnion Institute & University440 E McMillan Street, Cincinnati, OH 45206Phone: 513-487-1155
There is also Hamilton and Mason locations
Ohio Secretary of State about registering a business in Ohio
Vendor selling retail to anyone in the state of Ohio must collect sales tax.
You might need a vendor's license if selling from your home or within the state especially if any customers are in the state.
It gets to Sales tax here
This is one thing I determined:
IF YOU ARE REQUIRED TO COLLECT SALES TAX BY LAW, YOU ARE OPERATING A BUSINESS AND NEED APPROPRIATE LICENSES AND SETUP TO COLLECT AND FORWARD THE SALES TAX!
Do you have nexus in Ohio? Are you selling taxable goods or services to Ohio residents? Are your buyers required to pay sales tax?1) Your Nexus is in Ohio. YES
2) Artwork Sales Tax? Appears to be YES
So, physical artwork like sculpture, paintings, jewelry, and other crafts are generally always taxable.
Sales Tax when Selling Online is in the article.
3) At least some of your buyers are not exempt, so for you, YES
If licensing and business costs including materials and fees have you operating at a loss, it is a tax write-off. The IRS and State of Ohio recognize that some business lose money in the first year or two.
If you privately sold a piece or two of artwork, they aren't sending Federal and State agents to raid your home. Government employees have their job to do and cannot be bothered with small numbers.
However, if caught, they go back in time and collect their due, with penalty.
The question is always how much before they figure out you are operating an illegal business and not collecting sales tax? There is no magic guide of getting away with crime. I don't advise it, and it's up to you to guess.
- Wayne ZLv 76 months ago
1) If your state has a sales tax, at a minimum, you would need a sales tax license/permit and would have to collect sales tax from customers in your home state.
2) The new tax law pretty much eliminated that tax advantage for charitable contributions. So, in effect, you may be paying taxes on money that you don't have any longer if you give it away.
- 6 months ago
Not unless your art involves some sort of dangerous materials or controlled substance. Let me put it this way: if it's something you could buy or sell at a garage sale, you don't need a license to sell it.