Baskets and Sales Tax

Hello there!  It has been a long time since I have posted here.  I needed a bit of a break.  I still post at Sew Cool for the Tween Scene once or twice a month and definitely am still reading other people's blogs and enjoying seeing everyone's creativity.

So why am I writing this?  Well this month I am doing something a bit different for me.  I have been sewing and crocheting for a long time but it is almost always for my family or for the occassional gift.  Lot's of people say "you could sell this" but I really have never believed them or I don't think I could sell enough to really make it worth my while.  I did not really want the pressure of a business.

BUT, and you knew the "but" was coming, our church is having a craft bazaar and the fee to participate goes to support our youth and children's programs.  So, I thought I would make some stuff and then sell them at the bazaar.  And since I have a limited profit motive at this time, I figured any profit I make, I can give over to the church in addition to my table fee.  How's that for motivation?

So, I have made some random stuff that I am not sure will sell but has been fun to make.  And I have learned some things about a hand-made business so that I can be all legal for my one day show.  I thought I would share some of my 'product' and some of those lessons this month on the blog because who knows, one of my 10 readers may just want to know this stuff.  :D

The first thing I learned is about sales tax.  Nebraska, where I currently live, has a 5.5% sales tax and some municipalities have an additional amount.  I looked to see if craft bazaar or hobbyist that occasionally sell things are exempt.  Alas, they are not.

"The Nebraska Department of Revenue would like to remind sellers making sales at craft fairs, art shows, flea markets, trade shows, and similar events of their obligation to collect and remit sales tax on sales of taxable merchandise sold at these events."

But really, in Nebraska at least, it is not too hard.  Here, you fill out a Form 20 and apply for a tax permit.  Then, you will have to fill out a Form 10 to actually pay the tax.  I called the Department of Revenue and the lady that talked to me was super friendly and helpful.  And, they do not charge any registration fees!  Now, if this was going to be an ongoing business venture, she recommended registering as a business, but as a sole proprietor doing a small scale enterprise, she said it was not required.

So what am I selling?

wool baskets

One thing is crochet baskets.

I made several small ones out of blue merino wool.

pink basket

And some out of man-made materiel.

little pink and lavender baskets

I used this pattern ... and looked at several other free ones online and then adjusted them to my needs.

I know I like them and think they are a fun storage idea for small stuff.   What do you think?   If you can crochet, I recommend making a few ... if you can't would you buy one (not from me, but in general)?

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