Craft Business Expenses: How to Keep the Tax Man Happy
There are many tax expenses involved in running your own professional craft handmade business - we guide you though some of the most common ones.
If you are just starting your craft business and need some advice, or need some guidance on what to do next in order to grow your handmade business further then definitely consider arranging a mentor meeting with SCORE.
SCORE is the largest network of volunteer expert business mentors, with more than 10,000 volunteers in 300 chapters across the US.
Try Craftybase - the inventory and manufacturing solution for DTC sellers. Track raw materials and product stock levels (in real time!), COGS, shop floor assignment and much more.
It's your new production central.
It is a completely non-profit association dedicated to helping small businesses grow and achieve their goals and is completely free. Most SCORE mentors are working or retired business owners and managers who have extensive experience.
If you are just starting your craft business and need some advice, or need some guidance on what to do next in order to grow your handmade business further then definitely consider arranging a mentor meeting with SCORE.
You can arrange to meet a mentor online or face-to-face at a chapter nearest to where you are based. To begin, you can search for a mentor using their Find a Mentor page. Alternatively, you can contact your local SCORE chapter and they can help you to be matched with someone with experience in your industry.
Once you have had your first one hour meeting, your mentor will then schedule another appointment, or alternatively assist in finding the right resource for you. Meeting regularily with your mentor from this point is a good idea to maximise your chance of success.
It’s a good idea to bring more than what you’ll anticipate you need as then you can refer to it if it comes up in the chat. Things like your business plan, goals, profit loss statement (if you have one) and a list of questions that you would like to ask would be a great start.
To give your mentor a good idea of your business and what you sell, you might like to consider bringing your laptop so that you can show your online store with product listings, and you might even like to bring a couple of product samples so that they can really get a feel for your product lines.
Nicole Pascoe
Nicole is the co-founder of Craftybase, inventory and manufacturing software designed for small manufacturers. She has been working with, and writing articles for, small manufacturing businesses for the last 12 years. Her passion is to help makers to become more successful with their online endeavors by empowering them with the knowledge they need to take their business to the next level.
There are many tax expenses involved in running your own professional craft handmade business - we guide you though some of the most common ones.
We discuss how cash based accounting may not be the best option for your handmade business.
We discuss the considerations around how to select the best bookkeeping software if you are a handmade business.
Confused about your tax obligations as a handmade seller? Read on to find out how to stay on the right side of the tax man.
We discuss the different structures available for US businesses, and show you the advantages and disadvantages of each one.
Wondering if your handmade business is considered a hobby or a business? This article will explain the finer details from a tax perspective.