schmink Posted March 30, 2011 Report Share Posted March 30, 2011 (edited) Hello everyone. Last year I started a small Bait&Tackle shop out of my garage selling alot things (wire baits) I make myself, pickup some from garage sales, purchased a bait dealers permit to catch my live bait. The city inspecter told me to take my sign down since I'm not zoned to have a store on my street, so he recomended to advertise anyway minus thesign in my yard. my big concern is the i.r.s.so far havn't had problem. hope I posted in the right topic. Any help would be appreciated. Thanks! Edited March 30, 2011 by schmink Quote Link to comment Share on other sites More sharing options...
BLT Posted March 30, 2011 Report Share Posted March 30, 2011 What exactly is the question? Are you asking if you should get a federal excise tax number? Fed ID number? How 'bout state sales tax. I would not want to get caught w/o that stuff. I know Pa. is really cracking down even on flea market vendors and art/craft shows also. If you don't have any of the above, I would even go as far to suggest you delete your post, you just never know. I know where I sell tackle, if another tackle maker knows you don't HAVE all your ducks lined up, they will report you because they are paying the tax, and if your not, you can sell cheaper and push them out of the stores they sold to. You have to ask yourself if it's worth the risk. If it is, go for it. Myself, I think I shouldn't have to pay the excise tax until I hit a certain amount. For some of us, it is just a hobby to make a few bucks. I sell tackle to 10 different shops in 3 states now, so I don't risk it. Good luck with what ever you decide. Quote Link to comment Share on other sites More sharing options...
bassrecord Posted March 30, 2011 Report Share Posted March 30, 2011 What exactly is the question? Are you asking if you should get a federal excise tax number? Fed ID number? How 'bout state sales tax. I would not want to get caught w/o that stuff. I know Pa. is really cracking down even on flea market vendors and art/craft shows also. If you don't have any of the above, I would even go as far to suggest you delete your post, you just never know. I know where I sell tackle, if another tackle maker knows you don't HAVE all your ducks lined up, they will report you because they are paying the tax, and if your not, you can sell cheaper and push them out of the stores they sold to. You have to ask yourself if it's worth the risk. If it is, go for it. Myself, I think I shouldn't have to pay the excise tax until I hit a certain amount. For some of us, it is just a hobby to make a few bucks. I sell tackle to 10 different shops in 3 states now, so I don't risk it. Good luck with what ever you decide. To 2nd BLT's comments you already are on your city's radar. Like BLT said, every jurisdiction is short of cash and looking for people to fine. In your post you say you are running an illegal business in an incorrectly zoned area. All it takes is a whining neighbor or dissatisfied customer smelling your bait or paint or whatever to report you as a drug dealer to get a lot of attention in a very quick way from everybody you don't want or need. If you haven't applied for all the licenses how do you know if it's legal to run a business out of your garage? Some homeowners associations rules prohibit such activity and get nasty about it. Why try to screw over all the legal jurisdictions? Do you treat your suppliers and customers the same way - I bet not. So why not get legal about everything, and post their @#$& signs up all over the place and show everybody you comply? Most of us agree with you and hate to jump through their stupid rules and regulations, but it's less hassle in the long run. Good luck. John Quote Link to comment Share on other sites More sharing options...
powerworm Posted March 30, 2011 Report Share Posted March 30, 2011 so they know you have been doing business out of your garage for some time now illegally albeit. whats to make you think if they have a complaint from someone that they dont ask you for records from those previous years and then when you dont have them they can say you made whatever they want to and you cant contest it because you dont have any records? selling baits, making baits and catching baits are the easy parts keeping details such as yearly beginning inventory, ending yearly inventory, quarterly gross sales(both for state and federal) oh the list goes on and on. you have alot too lose if you dont run legit but hey al capone got away with it for alot of years until he finally got caught; and wesley snipes and richard hatch and on and on and on.... Quote Link to comment Share on other sites More sharing options...
schmink Posted March 31, 2011 Author Report Share Posted March 31, 2011 Just to let everyone know I'm retired&disabled and also am not trying to keep from paying the piper but didn't think I would have file for only making 50-75$ a week 4-5 month's a year. Look's like maybe I'm wrong. Thanks for the replys! Quote Link to comment Share on other sites More sharing options...
BBK Posted March 31, 2011 Report Share Posted March 31, 2011 Just to let everyone know I'm retired&disabled and also am not trying to keep from paying the piper but didn't think I would have file for only making 50-75$ a week 4-5 month's a year. Look's like maybe I'm wrong. Thanks for the replys! Unfortunately you are, and you better be prepared to cover back taxes (with interest). If they catch on they will hop into your computer and get all of the transactions you have had through ebay, paypal, and any email sales.. and they WILL look everywhere. They will get an estimate of what they think you have taken in (money wise) and charge you the tax on that, plus interest.. and if you dont pay that they will file a lawsuit on you, freeze your bank accounts, seize your assets and if you still can not pay for it you are looking at jail time. It is a very serious deal. Quote Link to comment Share on other sites More sharing options...
turkeylegs1246 Posted June 6, 2011 Report Share Posted June 6, 2011 It's more than the IRS. There is a Federal Excise tax on all sporting equipment. State taxes have to be paid as well. If you hire help you have liabilities......taxes, insurance, workman's comp, etc. All in all there are a lot of records to be kept. That's what kept me out of the lure business. All those other pots to pay really limits your profits. Probably make more cash doing something not regulated like producing tackle. I'd hate to lose what I've worked for because I tried to make a hobby into a business. But it is an individual decision. Making wrong choices could be your downfall. Quote Link to comment Share on other sites More sharing options...
BLT Posted June 6, 2011 Report Share Posted June 6, 2011 It's more than the IRS. There is a Federal Excise tax on all sporting equipment. State taxes have to be paid as well. If you hire help you have liabilities......taxes, insurance, workman's comp, etc. All in all there are a lot of records to be kept. That's what kept me out of the lure business. All those other pots to pay really limits your profits. Probably make more cash doing something not regulated like producing tackle. I'd hate to lose what I've worked for because I tried to make a hobby into a business. But it is an individual decision. Making wrong choices could be your downfall. I produce tackle and sell to shops, and I can tell you that it is regulated also. Excise tax included. Here in the wonderful commonwealth of Pa., you also have a "use" tax. That is for if you buy anything in another state and do not pay their state tax, you have to pay Pa. 6% tax because your "using" it in Pa. This tax is for anyone though, even a non business transaction, like a TV, if you buy it in a sales tax free state....you are to send in 6%. Kind of hard to track, but when in business, they know you have to be ordering something out of state, and they will audit you. I'm pretty sure also, if you have a tackle shop, and you also make tackle to sell at your shop, they are 2 different excise tax items/numbers. A lot of tackle shops I deal with are not having part time workers yet this year. Several shops have closed because of the economy at the beaches. Quote Link to comment Share on other sites More sharing options...
onlyonmonday Posted June 10, 2011 Report Share Posted June 10, 2011 So if someone sells out there personal fishing stuff at there garage sale, they should be liable ?? Quote Link to comment Share on other sites More sharing options...
powerworm Posted June 10, 2011 Report Share Posted June 10, 2011 no need to collect sales tax in most states at garage sales but you are responsible for declaring how much you made as income. the personal fishing gear would have already been taxed at the retailer. Quote Link to comment Share on other sites More sharing options...
BLT Posted June 10, 2011 Report Share Posted June 10, 2011 no need to collect sales tax in most states at garage sales but you are responsible for declaring how much you made as income. the personal fishing gear would have already been taxed at the retailer. Not to sure about that, I sell tackle to a shop that I make, pay the 10% tax, he sells to you, 10% more tax on an already taxed item. Like I said, I'm not sure. Quote Link to comment Share on other sites More sharing options...
JSC Posted June 10, 2011 Report Share Posted June 10, 2011 It all boils down to the fact that the one MAKING the Item must Pay the 10% FET on the price he sells it for. Any other taxes at retail (City, County, State) would have to be collected at the Retail Level. JSC Quote Link to comment Share on other sites More sharing options...
powerworm Posted June 10, 2011 Report Share Posted June 10, 2011 Not to sure about that, I sell tackle to a shop that I make, pay the 10% tax, he sells to you, 10% more tax on an already taxed item. Like I said, I'm not sure. i believe he was talking about selling your own gear not baits?? atleast thats what his post said. i have lived in quite a few states not all yet and we have never been required to collect sales tax on garage sale items but you do have to declare the sales as income at the end of the year Quote Link to comment Share on other sites More sharing options...
BLT Posted June 11, 2011 Report Share Posted June 11, 2011 i believe he was talking about selling your own gear not baits?? atleast thats what his post said. i have lived in quite a few states not all yet and we have never been required to collect sales tax on garage sale items but you do have to declare the sales as income at the end of the year Yep, re read it. I hope the boys don't hold their breath waiting for yard sale money to be reported. I have never know anyone to do it lol. Of course, I never have had a yard sale. Quote Link to comment Share on other sites More sharing options...
onlyonmonday Posted June 11, 2011 Report Share Posted June 11, 2011 Yep, re read it. I hope the boys don't hold their breath waiting for yard sale money to be reported. I have never know anyone to do it lol. Of course, I never have had a yard sale. So we can advertise as selling in our yard sale ?? What happens if some of us don't have yards ?? I have two feet tho.. Oh never mind.. I will never be going to Vegas I am guessing.. Quote Link to comment Share on other sites More sharing options...
