Assembly And Resale

[Humerfishing]

May be a silly question but I'm fairly new to this. Is therean issues with buying compnents wholesale from say, china or us wharehouses, then assembling/building my own "brand" and packaging and selling them. Does anyone have experience or knowledge of any big No-No's to this. Or any advise on starting up. Tings to watch for maybe?

[smalljaw]

There isn't an issue as long as you have the proper tax forms filed. I will tell you that there isn't much room for profit on a single lure, you will need to sell bulk in a very crowded market and it isn't easy to do. Most guys here make their own baits and therefore have something unique to them whether it be design, color, blade configuration or body style, but they cater to a niche market of anglers looking for an edge in tournaments or just a better day out on the water. Go to ebay and see how many others are doing exactly what you are talking about and then weigh your options but remember, the places you are buying from keep records and if you try to undercut others by not paying the Federal Excise Tax as well as income tax, you are asking for trouble.

[smallmouthaholic]

It is very easy to get caught not paying the federal excise tax.Once on their radar screen it's only a matter of time before the knock on your door w/ the flash of the badge.If you take credit card or check payments for your products, they are already aware of you.

 

BTW- the 10% excise tax we pay quarterly on gross sales is deductible from the gross income on your annual tax return-criminal penalties and associated interest are not.

 

A jealous competitor can easily drop dime on you.On occasion,I talk w/ the I.R. S. agent who signed my form #637.Usually the subject of the "under the table'' crowd comes up. I am always asked," do you have any names for me?" Big or small they will investigate you.

 

The last thing you need in this aggravating,back- stabbing  business is the I.R. S. harassing you

 

 

Edited for spelling

Edited August 17, 2016 by smallmouthaholic

[BLT]

There are guys around the area where I sell to shops that I know are doing it under the table for a couple bucks. They have been doing it for years. I have all the business I want, so it doesn't bother me. Must not bother the other main local guys that make rigs either. If I see someone milking Welfare or S.S. or disability, I will drop the dime on them in a heart beat.

[JLS]

As mentioned, pay your excise tax!

 

The 637 form gives you the ability to purchase parts excise tax free but is not required to start a business and pay the excise tax based on your retail/wholesale price.

It sure wouldn't hurt to contact the IRS so that you understand all the rules pertaining to excise tax!

[Brent R]

There are guys around the area where I sell to shops that I know are doing it under the table for a couple bucks. They have been doing it for years. I have all the business I want, so it doesn't bother me. Must not bother the other main local guys that make rigs either. If I see someone milking Welfare or S.S. or disability, I will drop the dime on them in a heart beat.

 

One day you are going to be on S.S. or Disability and when you find out that you can't make ends meet because you make so little. I promise you are going to change your tune. Sometimes people just don't care about others and have no idea what they are going through. Who knows one day you might be hungry and i hope you remember making this statement......I will keep you in my prayers....who knows you might just need it. For those of you on S.S. or Disability i understand and i will buy the stuff you have for sale whether i need it or not...God bless

[BLT]

One day you are going to be on S.S. or Disability and when you find out that you can't make ends meet because you make so little. I promise you are going to change your tune. Sometimes people just don't care about others and have no idea what they are going through. Who knows one day you might be hungry and i hope you remember making this statement......I will keep you in my prayers....who knows you might just need it. For those of you on S.S. or Disability i understand and i will buy the stuff you have for sale whether i need it or not...God bless

    Think you are not understanding what my point was, and I guess I could have been more clear. I am talking about the folks abusing the system. If you on on it and legit, you deserve it. There are to many people living off the system that should not be on it. That is my point.    Abusers of the system, not the legit people. I can't "drop the dime" on people that are legit.

    Sorry for the confusion, but my tune will never change for the abusers. 

[ING]

Some people with disability or SSI don't making lures for life - they are selling drugs and "worriers" against "abusing of system" pretending that do not see that because it is dangerous - drug dealers could retaliate. Therefore they are dropping dimes on the poor and defendless - it is much safer but looks disgusting.

Edited August 22, 2016 by ING

[LimpNoodle]

You can't "milk" Social Security.  

 

You can mill SSDI, Social Security Disability Insurance.  If one is on SSDI then one is assumed to not be able to work or do substantial gainful activity.  If someone is spending 8 hours a day painting and pouring lures with the intent to sell them then they are able to to substantial gainful activity.  

 

I've been on SSDI for a few years now.  Sometimes I can spend time at the bench making lures.  Other times, like the last eight weeks you can't do anything like that.  It's been since late June since I've even sat at my bench.  Major lower back flareup and the depression that goes with chronic pain pretty much put a stop to just about everything.  Haven't even been fishing in almost two full months.

 

MAYBE next week I'll feel like either fishing or making some lures.  

[Painter1]

We use Quickbooks Pro and log every transaction, buy sell, or donate. We also use that system for the rental property we own. Every month my wife balances the accounts with the bank statements and emails the Quickbooks file to the CPA. Easy, peasy. Make tax payments quarterly on the 15th.

There are so many complicated rules, depreciation schedules, deductions and credits that it can be difficult to keep up.

[BLT]

We use Quickbooks Pro and log every transaction, buy sell, or donate. We also use that system for the rental property we own. Every month my wife balances the accounts with the bank statements and emails the Quickbooks file to the CPA. Easy, peasy. Make tax payments quarterly on the 15th.

There are so many complicated rules, depreciation schedules, deductions and credits that it can be difficult to keep up.

 

Heard a lot of good things about that Quickbooks. I only use the Turbo tax small business at the end of the year for my tackle sales. I've been doing my own taxes for years now. Now if I had the rental props like you.....I would probably have someone else do it. Little more complicated.

[mark poulson]

We use Quickbooks Pro and log every transaction, buy sell, or donate. We also use that system for the rental property we own. Every month my wife balances the accounts with the bank statements and emails the Quickbooks file to the CPA. Easy, peasy. Make tax payments quarterly on the 15th.

There are so many complicated rules, depreciation schedules, deductions and credits that it can be difficult to keep up.

 

If you're going to make a business out of it, factor in the cost of having a CPA do your books.  It is much cheaper than an IRS fine, and you'll sleep better knowing you've done things right.

If you can't afford a CPS, rethink being in business, because it needs to pay for itself and give you a profit, or it's not worth doing.