Selling harmonicas on the side?
Answer:
Did you know that you will end up saving more money by having a Tax Number and "all that jazz?" because you can deduct your expenses from costs of business. You would qualify for wholesale pricing (saving you money), be able to write off website advertising fees (saving you money), and all kinds of costs from your business expense instead of out of your own pocket? If you sell anything you are supposed to charge and pay sales taxes (in your state only) but also supposed to pay IRS taxes on income over a certain amount. There's no such thing as "just a hobby" in the eyes of the IRS but the 20 or whatever percent you are paying for taxes will easily be made up by being able to reduce costs and sell for a higher profit margin. Now, as for wholesale prices, go to the library and get ahold of manufacturers of harmonicas. Also find sources for related items like sheet music, cases, and whatever else harmonica players want and need. You do not have to incorporate your business. Businesses do that to protect themselves against lawsuits so unless your customer accidentally swallows a harmonica and sues you, you should be okay. You should definately look into the costs of setting up a business, even if part time because in the long run, you may end up making more money and enjoying your hobby of going to the bank just a little more.
repairing, collecting, playing. these are hobbies..anytime you are selling something you are in a business.sorry but ive dealt with peoples "hobbies" before and have seen them get into loads of trouble with irs..its only a small investment to incorporate (and its a one time thing except for the annual filing) the id #s are free and you can file minimal paperwork (some even quarterly or annually) .as far as getting bulk harmonicas i dont know about that one except that you could call a # and see where it leads.try this one (866) 616-4277
HARP DEPOT
(740) 382-0770
NO SALES TAX Except OH
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