Whether you collect sales tax for mail order and Internet sales or in a quilt shop, you may find yourself in a quandry at times. 
*What if you live in a no tax state but sell to customers in a state where there is a sales tax?
*What if you have a sales tax in your state and sell to someone in another sales tax state?
*What happens when you and your customer both live in the same state that has a sales tax?  Sometimes, too, sales tax will vary from town to town, city to city, county to county within the same …read more

Getting paid from customers who live some distance away, or with whom you do business online or by mail, can be a lengthy process and occasionally leave you with a check that isn’t good.  PayPal has become one way to make doing business easier. 
Many home businesses doing business online utilize the PayPal banking services for receiving payment and purchasing.  This is a quick way to undertake these transactions.  You also can transfer payment deposited into PayPal to another bank.  Or you can withdraw money from PayPal by having them send you a check, for a fee.
PayPal does charge slight fees …read more

Preparing taxes returns for a craft or quilt/fabric  business occupies us this time of year.  Some have already filed theirs, while others are wondering why they have to and what they need to do.  Tammy Powley, who writes b5media’s Jewelry & Beading blog, has written at least two posts about getting the information ready for her taxes.  It’s sometimes interesting and informative to learn what someone else is doing. 
“This [taxes] is one of the things a lot of jewelry makers [and other home/craft business people] don’t think about when they want to start doing jewelry and beading as a business,” …read more

Quilters, who earn income from their art, often don’t consider that they’re in business and that they must pay taxes in most situations.  If they receive a 1099 Misc Income form, then it might occur to them that they have to report something.  Even then I’ve heard some remark they didn’t realize they had to include quilting or fabric art income on their tax return.
In the U.S., quilting, fiber arts, and craft income generally is taxable over a specific amount, and you usually need to include a Schedule C form with your tax filing.  In most states, you also have to …read more

Many quiltmakers and fabric artists have turned their hobby into an income producing business.  It’s important that they develop a bookkeeping system for income and expenses.  If they’ve developed a business large enough that they have employees, there are other bookkeeping matters to consider.
The post about bookkeeping at my blog, HomeBizNotes, will give you a place to start with this topic. ( If you have employees, you may be interested in the post on minimum wage.)
Some of these topics seem far afield from quiltmaking and artistic creations.  However, if you have developed a business, whether small or larger, you must be concerned about keeping good records. 
          …read more

Many quiltmakers and fabric artists are involved in a fascinating hobby.  Others begin to see this as a way to earn income and develop a home based business.
Once you’re involved in a business, you’ll need some way to keep track of earnings and expenses, a way of making sure your checkbook is balanced (this is a good idea even if you’re not in a business!), and the ability to determine what aspect of your art is worthwhile.
You’ll find various bookkeeping systems to consider if you aren’t using one.  Nowadays there are systems to put onto your computer.  Perhaps you already are …read more