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what happens when someone asks for a print? I am going to an event this weekend which I attended last year. I am taking a bunch of photos from last year to display, purely for people to look at and enjoy. However, if I am fortunate enough, someone might ask me for a print. I don't have a photo business. I do wonder about starting one but I have no idea how to progress. So in the meantime, if someone wants a print, should I charge them? (I'd like to, obviously!) Should I charge sales tax? Can I put this on the tax form as "income from a hobby"? I'd very much appreciate some advice! Thank you for reading. Jo |
Short answer, and others will chime in, too: • To sell a print, you have to collect sales tax • You cannot collect sales tax until you have a state sales tax ID number • Then you will have to pay that sales tax to the state on their schedule (mine is quarterly) The application process for an ID number can take a few weeks, so it depends on how long you have before the event. Otherwise, you might be out of luck on selling prints this time around. |
If you are going to charge for your images then you have to charge sales tax. You will need to get a sales tax license before you ever start accepting money for your work. It is easy and can be done online. |
OK, thank you for your advice. I guess I will need to start looking into this stuff. Is there such a thing as a small business advisor who I can go to and find out what else I need to do? I am not at all familiar with the US way of doing business so I'm a bit lost. I am in Hays County if it makes any difference. |
The Small Business Administration usually has local branches that can help you get all your ducks in a row to be legal. Their services are free. |
Thank you, that looks like exactly what I was after. |
What happens when someone asks for a print? My money travels from their pocket into mine! :) Don't just hand them a business card, as they will more than likely they will not contact you back. Have a list that others can sign so you can contact them with a price list and a web page address that they can see the images on. |
OK, I went to see the business advisor. He was very helpful. He wants me to write a business plan and become a sole trader. However one question was not really addressed -do I actually have to go down the road of starting a business just to sell a few prints? Or can I get a sales tax ID without doing all that? What would be the scenario if I took a SmugMug Pro account and sold prints that way? I know they deal with tax issues at their end, so would that cover it? |
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feh..you just want to sell prints? -DBA at the county clerks office -sales tax certificate from the state comptrollers office (http://www.window.state.tx.us/taxpermit/) |
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Wrong, that is NOT all you have to do. You MUST, by law file a Business Personal Property Rendition and pay those taxes Annually as well. There may be other city (local) or county requirements depending upon your location. CJ |
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It is a cost of doing business. You receive benefits and tax breaks on the front end of this that consumers DO NOT, so it works out and isn't just "another tax." If you do't like paying taxes, you might as well move out of the US and find another place to live. Taxes provide the liberties, advantages and way of life in this U.S. of A. They are a fact of life. In business, they are simply requirements of the law. CJ |
Has anyone asked you to sell a print? Are you really interested in starting a business?These are the questions you should ask yourself.Those in Texas know more about this than I do, so I would follow their advise. |
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