*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 state.

*Do you collect sales tax if you visit another state to teach a workshop or give presentations and sell items while there?

These and other scenarios raise questions.

So….visit Kelly, the Taxgirl.  She has a great post about this topic, Ask the Taxgirl: Internet Sales.  Here Kelly will answer some of the questions you may have about the sales tax issue. 

Post from: Blisstree

Sales Tax & the Quilt Business Owner

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 for their transactions, but you generally have to pay fees for other types of banking, too, especially when they involved other countries. 

PayPal continues to expand its services so that more and more companies are using it, making international banking and business less difficult.

Mark at Digital Money World informs us that PayPal just announced its partnership with GPShopper, enabling it to offer Mobile Checkout.

“Mobile Checkout is a simple payment mechanism for consumers on-the-go and merchants with online storefronts. ”  Through Mobile Checkout, consumers (in your case your quilting and fabric art customers) in the U.S., U.K. and Canada can purchase items securely through PayPal by using their mobile phones!  Has the world just become easier?

Although I’ve not used PayPal to pay for purchases, I’ve found it great way to receive payment promtly, especially from companies and individuals in other countries.

Also, PayPal is being utilized by the travel industry…something to consider when you travel to quilt shows. 

 Northwest Airlines announced it will begin using PayPay as a way passengers can pay for their tickets, opening up the area of airline flight to this method that’s recognized internationally.  Mark at Workboxes has more on this topic and PayPal’s new look.

Post from: Blisstree

Using PayPal for your Quilting Business

“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,” mentioned Tammy

Her tips and experiences on this topic also can apply to quilters and fabric artists.  In the US, craft businesses do have to report earnings, expenses, and pay taxes and self-employment.   

Her post, Tax Bead-Time Cometh, gives you her insight into what works for her.  Tammy also mentions why she has begun having an accountant prepare her taxes.  This may or may not be something you want to consider. 

Tammy posted again when her taxes were nearly finished, Bead Taxes Almost Done.  Here she mentions where you can find forms on-line at the IRS site and why she uses Schedule C as a check list as she gathers her tax information.

Do you have information to share about taxes for a quilting business?

Post from: Blisstree

Tax Tips from a Craft Business Owner That Also Apply to Quilters

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 deal with state income tax or a business profits tax.  Check with your state or accountant to see what is required.

(If you’d like to give your input about quilters and taxes in other countries, please do so in the comments.)

Below is one of many book about taxes.

Post from: Blisstree

Quilters Pay Taxes, Too

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. 

Post from: Blisstree

Bookkeeping – Important for a Quilting 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 consulting an accountant for your taxes who can advise you for a home business.  Any bookkeeping you do on your own does help your accountant.  With some bookkeeping and tax preparation systems, you may find you can do it on your own.

These are just a few ideas to research.  

Post from: Blisstree

Bookkeeping for the Quilt Business Owner