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Member since 2/23/04
Posts: 170
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Posted on: 4/28/09 7:45 AM ET
I live in Illinois near the Indiana border. I am starting a home based craft business and would like to find information on selling items in each of these states. Does anyone have any detailed information on how to go about this or a good resource for this info? I would like to start out selling at craft fairs and then maybe advance to internet sales. Do I need to register with both states and charge sales taxes on the items I sell?
  
Member since 7/27/05
Posts: 3783
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Posted on: 4/28/09 9:15 AM ET
I suggest you start with your local county - they will probably have free classes for you to attend about setting up a small business. One of the tricky parts is you need to conform to town, county, state, and federal rules. For example, your county may require you to have a permit to operate a business in your home (mine did). The state may require you to register your business (and yes, collect taxes). Sometimes, if your anticipated sales are under a certain amount the formalities are much less onerous, sometimes they're not. It's all so location-specific. The IRS treats hobbies differently than businesses so you'll need to read up on that and see which category best describes your plans.

Good luck.
-- Edited on 4/28/09 9:16 AM --
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"The trouble with quotes on the Internet is that you can never know if they are genuine." --Abraham Lincoln
  
Member since 10/19/05
Posts: 323
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Posted on: 4/28/09 9:58 AM ET
In reply to namakb
You will have to pay sales tax and will need a sales and use tax permit from each state. You probably won't have to file every month -- the rules will vary based on how much you take in, but basically small sellers don't have to file that often.

You can probably file on-line with the state's tax policy division. You can Google "indiana sales tax and use permit" and "illinois sales tax and use permit" (or some similar permutation) to find out how.

The IRS cares about your income taxes, the states care about sales taxes.
-- Edited on 4/28/09 10:00 AM --
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Joey
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30% sewing ...
70% damage control

http://www.using-sewing-machines.com
  
Member since 4/23/04
Posts: 1383
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Posted on: 4/28/09 11:24 AM ET
Hi I use to live in IL. and ran a sewing hobby business out of my home...if you reside in IL you should only need a IL tax number...just either phone or fill out the downloadable forms off the net and then you file a tax collecting form every month even if it is 0....I use to just put my income made on my husbands tax return as it was nominal but then i paid the taxes on my earnings.....craft sales I am not sure of I think you sometimes get some kind of temp vendors permit to sell in another state but if you phone them they are usually helpful....when I moved I cancelled all my stuff but someone forgot and I was in Canada and received all theses warnings so I phoned them and explained again and they apologized for the overlook....hope this helps you out....Chris
  
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