goodtimesfishing Posted December 28, 2013 Report Share Posted December 28, 2013 Out of curiosity I was looking at the link for the irs info. I was shocked when I read the part about use considered sale part. [use considered sale: A manufacturer who uses a taxable article is liable for the tax in the same manner as if it were sold.] If I am reading this correctly it sounds like us tackle makers that make tackle for personal use and are NOT SELLING tackle, are still suppose to pay tax on the tackle we make and use?????? Quote Link to comment Share on other sites More sharing options...
BLT Posted December 30, 2013 Report Share Posted December 30, 2013 Out of curiosity I was looking at the link for the irs info. I was shocked when I read the part about use considered sale part. [use considered sale: A manufacturer who uses a taxable article is liable for the tax in the same manner as if it were sold.] If I am reading this correctly it sounds like us tackle makers that make tackle for personal use and are NOT SELLING tackle, are still suppose to pay tax on the tackle we make and use?????? If you are only making tackle for your own use, you are not a business, and no need for any license or business tax numbers. Now it DOES sound like if you make/sell tackle as a business, any tackle you make for yourself is to be taxed like you were selling it to someone or shop. Quote Link to comment Share on other sites More sharing options...
JunebugsCustoms Posted December 30, 2013 Report Share Posted December 30, 2013 Here in Missouri, I needed a State business license so I could get set up to submit sales tax. You also need an EIN (employee identification number) from the IRS. There are some hoops to jump through, forms to fill out and I even had a local IRS rep come to see my setup. I think there was another IRS form to submit when getting started but I forget what that is called. Then you have to submit form 720 to the IRS on a quarterly basis and pay your 10% excise tax. That is the short version of how to get started legally. Or you can just fly under the radar and take a chance of someone turning you in or whatever. Under the radar with the form 720 will cost you 10k per day when they catch up to you, and from what the auditor told me when I got my FET number was that they have people routinely monitor social networking sites and forums looking for folks selling illegally. When he came out to my shop he said it was really fortunate I had applied because he had already gotten wind of my business when the application crossed his desk. It just isn't worth it to not be legal 1 Quote Link to comment Share on other sites More sharing options...
