Is selling products illegal?
I purchased a cricut machine and bought plain mugs, bottles ect.and selling them on personalised at reasonable prices online.
I work and I do this as part time in my free time.I have been doing this for 2 months now and was wondering do I need to register as a business or is it illegal to be doing this as part time or can I continue doing this as I have been. Just want to cover myself or know if it's okay.Thanks for taking the time to read.
- ?Lv 62 months ago
If you are in the USA then...because it is November you wait until Dec 31st and add up all of your sales. If you have less than $1,000 in sales for this year, you can consider it as Hobby Income and declare it on your tax return. You may owe state sales and use tax on it depending on your state. At the most that will be $80.00 on $1,000 of sales.
As a Hobby - you do not need a business license.
Now...if you made $1,000.00 in 2 months of this...then in 2021 you can reasonably expect to repeat that performance so that means....maybe $6,000.00 next year. So...sometime in January go to the IRS website and get an EIN. Then with that you can get your CRN (or sales and use license) for your area and work to expand your business.
Check with an organization called 'SCORE' in January for hep in setting up your business the right way.
And selling thing is not illegal...if it were.... the USA and most of Europe, China and Africa would be in prison.
- 2 months ago
It depends on your state.
If you sell with the intent to make a profit you have a business whether it's registered or not. If it's a hobby you still have to follow specific tax laws and report all your income.
Anyone who tells you that a corporation or LLC will shield you from personal liability doesn't know what they're talking about. With a single-member entity with the owner operating the business, there is no way to shield yourself from liability other than a good business insurance policy. If there's a damage claim attorneys will pierce the liability veil so fast it will make your head spin.
It's also foolhardy to think you can run a corporation or LLC just because it's so easy to fill out the paperwork. It's like jumping into a plane and starting it, then saying, "How do I fly this thing?" You can probably get it to take off, then you'll end up crashing in the woods because you don't know what you're doing.
- Anonymous2 months ago
Depends on the laws of your country and/or state. Some places there's a specific limit on how much money you can earn on a "hobby" before you need to registre it as a business.