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Question: How to start a at home business?

(Posted by: on 2010-08-30 18:41:16)

So I would like to start a small at- home Jewelry Business. It is my hobby and in order to support it I plan to sell some of my items at craft shows this fall. I also have some friends that are wanting to buy my items. If my craft shows go well I would like to sell my stuff on a website like etsy, ecrater etc. So I am wanting to apply for a tax id number and also a sales tax account locally in order to comply with the laws etc. My question comes from the all the info I have read. Do I pay income tax annually like when my husband and I file taxes, or do I make payments throughout the year. I do not suspect that I will make TONS of money I just enjoy doing this, and want to share my talent with others. A little extra mad money won't hurt though ya know!

Posted by: capwest5a on 2010-08-30, 23:18:54

Yes, you should get a business license and a TIN, etc. In your first year, you will pay taxes based on the income made in the initial year. After that, the IRS will have a 'handle' on how much you are expected to owe in taxes, and they will put your business on a quarterly estimated tax type system.