Crafts? Arts?

[GreenView]

Hello everyone.

I want to start a small work at home business. I am keen in crafts work, arts, some graphics, and more. But I am afraid to get started.

My main goal is to keep the IRS off my back and go about this legally...what should I do? Do I trademark/copyright everything and then get a DBA name?

I will be using paypal for the moment...do you know if there are any legal issues to this as well as the whole concept of selling something that I make online?

Any advice will be appreciated.

[babygifts]

Best wishes to you on your new business venture. It's a great idea to venture into an area where you feel confident and enjoy the work. ;) My advice to you would be to visit a local bookstore. There are several wonderful books about starting a craft business. You might even be lucky enough to find a few in your library. Issues regarding tax vary from state to state especially where online products are concerned. I'm not sure about the crafts and copyright, but I'd definitely copyright your graphics. Watermark your graphics. "But I am afraid to get started." Getting started can be scary and exciting all at once. Focus on one step at a time and before you know it everything will become routine and more comfortable for you. Best of luck! :)

[eelkat]

Never sold stuff online, so not sure about all that, but my mom owned a "brick and mortar" Craft Shop back in the 80's. So my comments here are based on that.

First go to your town hall and ask them about permits and liscenes needed. A craft shop, regardless of outlet (a store, mail order, or online), must have a retailer's licene. Your town cleck can tell you what permits are needed for you locally, be sure to ask about selling/shipping out of state, if you need ant extra forms to do that. It cost my mom less than $20 to get all the permits and such she needed.

Secondly go to your bank and open a business account, in the name of your business....NEVER, NEVER, NEVER!...never put your business income in your own personal bank account! That is the quickest way to get in trouble with the IRS! Without a seperate account, you can't prove that money you deposited from your great-grandmas birthday gift to you was not an income from your business, and if you get audited, the IRS well check you bank account records...so it's very, very important that your business have it's own seperate account, with no connection to your personal accounts. You mentioned staying out of trouble with the IRS...Opening a seperate account for your business is one of the best ways to prove to them that you are a business and not a hobby, and it well help keep them looking only at your business income. Lack of a business account was one of the misstakes my mom made with her store...personal money getting mixed up with business money can lead to disaster.

The best way to stay on the IRS's good side is to continue to file your taxes, on time and honestly. If you need help, go to your local libray and ask for the free tax info brochures, that are provided at all libraries. The librarian will be able to recomend local tax help offices if you need them.

You don't mention what kind of crafts you are selling. My mom was a seanstress and doll/toy maker...in other words she made childrens fancy dresses, cloth dolls, teddy bears, and stuffed animals. Okay, assumeing you well be useing fabric, cloth, and/or stuffing, you should also note that one of the quickest ways to end up with a lawsuit, is to not have a permit to sell items made from these things. You must have child saftey (age 3+, etc) tags, and you must send samples of actual products to your State offices to be eamined for allergins (if you own a cat...they WILL find a cat hair...and not allow you to sell the items...believe me...I know!) This means that your work area must be free of pets, children, food, dust, mold, smoke, etc...because that is what they are testing your materials for and that is what they can shut you down for if someone buys your items and than complains to the Better Business Bearue.

Another note: items made of bone, antlers, fur, or feathers, require special permits, sometimes seperate permits for each state you ship them into.


I'm gonna agree with the previous poster...head to your libray and ask for books on starting a home business...if they don't have them, ask about inter library loan.

If you make crafts from a pattern...exp..Raggedy Anne Dolls, from a McCall's pattern, you not only can not copyright the item, you can go to prison for selling it...be sure to read the copyright info on any commercial patterns, or patterns from a book...some allow you to sell the item IF you mention the companies copyright to it; some allow you to sell the item at local fairs but not through a business, but most inforce the copyright infringment law very strictly...and well take you to court if you get caught. So be very carful when selling items made from a commercial pattern or from a craft book.


If you have created your own pattern that you are useing to make your items...by all means get it copyrighted...it only cost $20. The copyright office has a web site, just google it and read the info.

You only need a trademark registry if you have a logo...example...Coke-a-Cola's red symbol with the white wavy line...Or if you have created a character that you own the copyright to...example...The Smurfs. If you plan on having a logo that you use on all of your letterhead, business cards, web site, etc, than you can look into get it registered as your trademark, but that's not neccassry.

Graphic, art, photos, and the written word, all all automaticly copyrighted the instant you created them, all you have to do it state...Copyrighted by Your Name Here 2006...there is no need to register the copyright....by law the copyright is automatic. The only reason to register the copyright is if you are afraid of a lawsuit...you can not fight for reembert from a copyright infringer unless you register the copyright.


I hope that some of this info helps you out. Like I said, I'm only speaking from personal experiance, so be sure to check your local laws, as they may be differant. Good luck!:)




For my mom, in the end her store lasted 3 years before closing down, due to the fact that keeping up with legal paperwork was more of a hassle than she had anticipated. She ended up making items and selling them on commision to other local shops, because once she started running her own shop, she no longer had the time to do what she loved: making crafts.

[Darrenbin]

How is business going? Keep us updated on your progress. Lets' motivate one another.