Business Question

McCracken

McCracken

Logan Can't See This
Joined
Jul 9, 2005
Location
With your mom at a nice seafood dinner
So I started a farm and it's going pretty good. We grow hops in the western part of the state. I plan to expand it in the near future but in the meantime we're going to figure out what we need before we get in over our heads.

Anyway, we made a couple shirts for me and the mrs. and they seem to have gotten a good reception so we've ordered a few more to sell. However, I've never sold anything before. I have my business license and ID# but I'm not sure about what goes into selling stuff (taxes, reporting, etc.). In the future I'd like to sell other stuff like stickers and such. How do I get started? I went to the NC DOR website and couldn't really get where I wanted. Anybody got any insight (Shawn, [insert Fab Shop Name], etc.]?

To be clear I'm not lookin to sell anything on here so please don't take this as a pimp for my stuff. Just need some info. Thanks.
 
You will need a Tax ID number. This is different from your business ID number. Once you apply for your tax ID number, the IRS will send you a packet with forms for your quarterly tax registration and payments.

A good place to start is www.blnc.gov

I hope you enjoy reading o_O
 
we've got one but because we don't have a lot of money coming in we try to keep costs down. so the first thing I do is ask people on NC4x4 :flipoff2:

next question, say I sell something. do I charge sales tax on the price I buy the shirt for or do I charge tax on what I sell it for? sounds like it would be the latter but I r newb.
 
In some states, sales that are used to support farming are not taxed. Not sure if NC is one but you could look into that or similar loopholes.

Don't you have a great hobby of making T-shirts? Hobby income is not taxed (income tax) if it is exceeded by hobby expenses. Does not help w/ the sales tax question but I thought I'd remind you of that...
 
Not sure about the farm support but that's exactly what it's for. It's not like we'll make a killing on these things mainly because I don't want to charge shipping. This means I'll have to eat it. I'm just trying to hook people up with some t-shirts for fairly cheap.
 
McCracken said:
Not sure about the farm support but that's exactly what it's for. It's not like we'll make a killing on these things mainly because I don't want to charge shipping. This means I'll have to eat it. I'm just trying to hook people up with some t-shirts for fairly cheap.
Click to expand...

Look into the flat rate boxes. T shirts rolls up nice and tight.

Or just buy a really big T-shirt cannon and send 'em air mail!
 
The thing about the tax id is that once you get it, you can give that number to the place you are getting your shirts from and get them wholesale (meaning you will not pay taxes on them). Then you only pay taxes when you sell, not when you buy.

Just remember that what you consider not much (25 shirts), the IRS considers reason for an audit if they find out.
 
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