Do I need a vendors license to sell jewelry at flea markets and small shops?
(Ocean City, MD, USA)
I would like to sell my handmade jewelry at flea markets and small shops in the area. Do I need to have a vendors license?
You probably won't need a "vendors license" to sell at flea markets and small shops but you should consider registering your business and applying for a vendors permit or retail sales tax number.
There are two main benefits of registering your business the first one is to be able to declare deductions and the second gives you the ability to buy supplies from wholesale suppliers.
You need to prove to the government and wholesale suppliers that you are an official business producing handcrafted items for sale and not just as a hobby.
Once you are "in business", and not just producing crafts (jewelry) as a hobby you'll find you are entitled to a great many tax deductions. (such craft show entry fees, automobile expenses, your workshop or studio in your home, advertising and marketing expenses, and all the other expenses you have incurred against your business income. Generally what ever costs you money to make money should be deductible.) Make sure you keep ALL receipts.
Wholesalers typically sell for about half the price of retailers (and have better selections.) Purchasing your jewelry making supplies WHOLESALE will allow you to price your work more competitively.
If you plan on selling your jewelry at craft shows then most shows require that you have a vendors permit (resale tax number) when exhibiting and selling your jewelry. Check you show guidelines.
Laws regarding business registration requirements vary from place to place. Contact your local business development office, chamber of commerce or town or city clerk’s office to determine the registration requirements in your own location.
Many states also require that you apply for a retail sales tax number. Your responsibilities to sell jewelry and other items retail is to charge the correct retail sales tax on the total value of all taxable goods and services.
Your local retail sales tax district office will provide you with more information and also issue you a vendor's permit or retail sales tax number which is a certificate of authority to collect the tax, send you reporting forms and all the necessary instructions, and advise you of dates (usually monthly) for remitting tax collected.
I hope this helps.