Many jewelry artists start by creating pieces for family and friends, selling locally, and eventually progressing to a full-fledged business. If you are starting out with a home business, you may wonder at what point you should register your business and get appropriate licenses and permits to sell your jewelry on a larger scale. You may wonder what the benefits are, especially if you reside in an area where a home business does not need a business licence.
You Need More Wholesale Options to Increase Profits or Expand Your Line
Most wholesale distributors are business-to-business operations. This means that you will not be able to purchase their products unless you have a business licence and/or a business tax identification number. Once you register your business, you will have a greater choice of wholesale vendors. Wholesale savings on items you buy in bulk can significantly increase your overall profit, and you may gain access to more options, such as imported beads and components, that are not otherwise available.
You Want to Travel Out of State for Shows or Sell Online
While you may not be required to get a business license to sell your items locally, once you start going to trade shows and selling your jewelry online, it is much more likely that you will encounter a venue that requires you to have a business license. Having your business license ready to go will give you the freedom to register for a larger variety of shows around the country. It will also make you look more official when approaching other vendors to sell your jewelry for you.
Income From Sales Provide the Majority of Your Income
Whether you have a business or are working as a self-employed individual, you will need to file report all of your income and file taxes. In the beginning, it may be easier to only have to file one tax return and remain self-employed. However, registering your business will allow you to take different business deductions that are related to your business and can protect you from financial liability in certain cases. For this reason, as soon as you begin making a significant amount of money, you will want to create a business and register it for tax purposes.
Whether you are just starting out or have several years of jewelry-making experience, it is important to consider the many benefits you receive by registering your jewelry business. Contact a company like Har-Man Importing Corp for more information.