pigdestroyer Posted May 1, 2009 Report Share Posted May 1, 2009 Do you all that sell have business licenses? I am going to start selling my plastics online and I am curious. At what point should we get a business license? Quote Link to comment Share on other sites More sharing options...
IGOTWORMS Posted May 1, 2009 Report Share Posted May 1, 2009 If you plan on doing this for a while then its time to get your licence. Besides then you can clame all your worm making stuff as an expense. Quote Link to comment Share on other sites More sharing options...
Bass-Boys Posted May 1, 2009 Report Share Posted May 1, 2009 you mite also need a State Tax ID number . Quote Link to comment Share on other sites More sharing options...
RipLip Posted May 1, 2009 Report Share Posted May 1, 2009 Yes, you should do both of those as soon as you start selling, especially on line, because now you're talking about more than just doing local cash sales. I recommend getting a business account to your bank and linking it to a Paypal account and keep it seperate from your own account for tax purposes. Just a couple thoughts but it's still a lot more than that. good luck Quote Link to comment Share on other sites More sharing options...
pigdestroyer Posted May 1, 2009 Author Report Share Posted May 1, 2009 Thanks all. I think I will have to rent my boat to the company for field tests. Quote Link to comment Share on other sites More sharing options...
carolinamike Posted May 1, 2009 Report Share Posted May 1, 2009 Some states require a business license and some don't. It's taxes that you want to check into. If you are a manufacturer (make your own products), you definitely have to pay 10% federal excise tax on all of your sales. Talk to your local IRS agent, they've always been very helpful whenever we've had any tax questions. Remember state is separate so you will need to contact your state's department of revenue to find out what requirements apply to you. Sounds complicated, but it's real simple and you're starting your business off right. One thing I've figured out, part of having a good business is doing good business, so it's best to start out on the up and up. It'll pay off in the end. To sum it up, don't take the chance about paying your taxes. It's not worth it in the end. Quote Link to comment Share on other sites More sharing options...
fishtr417 Posted May 2, 2009 Report Share Posted May 2, 2009 Do you all that sell have business licenses? I am going to start selling my plastics online and I am curious. At what point should we get a business license? I live in Missouri and the state requires for you to obtain a tax number and since I live in the county (not in the city) I am required to obtain a county vendor license (the city may require you to have one too). It is a good idea to contact the IRS on the 10% excise tax since this can be confusing..even though we man consider ourselves "manufacturers" sometimes and if we use components (hooks, skirt tabs, blades etc.) the excise tax is paid at their level and we wouldn't have to pay again. I found that most don't obtain a county vendors license for Internet sales, even though my county informs me that it is necessary. When I went to the court house and inquired as to whether a license was required for internet sales I was met with the response "we have never been asked that question before". Lots of internet selling going on here and that tells me that folks just aren't becoming licensed. I set mine up as a "sole proprietorship" and this allows me to report any income(and losses) on my personal income tax...the reporting and record keeping is much easier this way. Good Luck..gmtire! Hope this helps and the other posts are correct....inquire..do what is necessary and you don't have to worry about it. Quote Link to comment Share on other sites More sharing options...
Smallie Posted May 4, 2009 Report Share Posted May 4, 2009 It is a good idea to contact the IRS on the 10% excise tax since this can be confusing..even though we man consider ourselves "manufacturers" sometimes and if we use components (hooks, skirt tabs, blades etc.) the excise tax is paid at their level and we wouldn't have to pay again. Is this true? I thought the manufacturer had to pay 10% on the sale price regardless of whether or not the exise tax was paid on the components. That the IRS will double dip on the excise tax unless you have a federal tax ID and don't pay the 10% when you buy the components. Quote Link to comment Share on other sites More sharing options...
JSC Posted May 4, 2009 Report Share Posted May 4, 2009 If You purchase a component and you do not have a Tax Exempt Form filed with them you will be charged the 10% which ... with proof ... you can deduct from your Excise Tax Payment. Make sure you have the necessary paperwork to back it up. Some times on small component purchases it can be better to go ahead and pay and forget about it due to the time and paperwork to keep up with it. The best thing is to have an Exempt Form filed with your suppliers of components if you buy in large quanity . .02 cents worth JSC Quote Link to comment Share on other sites More sharing options...
headshot Posted May 5, 2009 Report Share Posted May 5, 2009 (edited) Sorry if this is off-topic, but what about if you use a Del or Bob mold, and want to brand your pour under your own name? Like calling your worm the stickinator or somesuch? Not trying to be silly, just love their molds, 'cuz quite frankly, they're better than I could make at this point. /wait til I get my hands on a CNC machine and autocad, durnit!. :smiley: Edited May 5, 2009 by headshot adding smiley for positive effect, durnit! Quote Link to comment Share on other sites More sharing options...
Smallie Posted May 7, 2009 Report Share Posted May 7, 2009 Do Delmart, MF, Bears, Lurecraft and the others take 10% off of component parts if you provide your tax ID number? As far as proof goes, how would you establish that? Would it be sufficient to keep a spreadsheet with two columns. One would be for components that has excise tax paid and the other has the components that excise was not paid on. Then, if this is sufficient, it would seem like you would have to have the cost every component of a particular bait figured out so you could apply 10% to just the components the tax was not paid on. Am I making sense or just more confused than I realize? Quote Link to comment Share on other sites More sharing options...
MTfishingrods Posted May 7, 2009 Report Share Posted May 7, 2009 Headshot, You can purchase their molds and name your bait any name you want to give it. It is done all the time. Smallie, Only certain componants have the excise tax added in so you may or may not get the discount. you need to check. Or you can just have one on file with all your distributors and save the hassle. Quote Link to comment Share on other sites More sharing options...
JSC Posted May 7, 2009 Report Share Posted May 7, 2009 Headshot,You can purchase their molds and name your bait any name you want to give it. It is done all the time. Smallie, Only certain componants have the excise tax added in so you may or may not get the discount. you need to check. Or you can just have one on file with all your distributors and save the hassle. Ditto MT Smallie stuff like raw plastic, coloring, glitter .. etc are basicly "Raw Materials" .. The law is real sticky when it comes to what is taxable ... Example .. I thought that if you sold a plastic worm __With Out a Hook__ that it would be exempt ... Tom Mann and I had talked about it and afterwards he went to court with it .. we were wrong .. judge said it would ATTRACT a fish .. that is all it has to do is ATTRACT ... spinner blades is another example ... B U T having said that --- split rings, swiveles & etc are taxable ... Go Figure. On keeping up with it for verification have the INVOICE. Hope I did not confuse the issue to much. JSC After thought ----- maybe some one has the answer ... are Scents taxable ??? (I hope I did not open a "Can of Worms") Quote Link to comment Share on other sites More sharing options...
