Do I need a business license to sell at all craft fairs?

Question

I make baby blankets and would like to start selling them at craft fairs, church bazaars, etc. I am finding lots of conflicting information as to whether I need a business license and sales tax permit for all of these. It seems like the answer is yes for some, but that some fairs actually offer sort of a temporary "blanket" business license and sales tax permit for all of their vendors at the festival. Is this possible? I mean, for those of you who sell at craft fairs on a regular basis, what is the normal policy? Have you found that fairs can be this different and that some offer temporary licenses for you and some do not? Or am I incorrect and will absolutely all craft fairs and church bazaars require me to have my own business license and tax permit?

Might it make a difference if it is a craft fair held at a park or private facility vs. a bazaar held at a church or public school, like some do as fundraisers (by renting out booths to artists and crafters)?

P.S. If it makes a difference I live in Las Vegas, NV. (Clark County)

Answer 1

I don't live in Nevada, so I can't answer specifically for your state. However, the information is easy to locate.



Every state law on sales tax applies to any retail sale--that is, a sale by a person whose goal is to make personal profit (which is different from "fundraisers" where all income goes to the exempt fund--if you rent a booth at a fundraiser, you are still aiming for personal profit). Your state wants to collect the tax, not prosecute you, so they make it easy for you to get your questions answered. This is from the Nevada Department of Taxation:



"The Nevada Department of Taxation has established a new call center to address questions regarding sales tax, use tax, modified business tax, general tax questions or information regarding establishing a new account. The call center can be reached at 866-962-3707. The call center hours are from 8:10 am to 11:50 am and 1:00 pm to 4:45 pm Pacific Time. The call center is closed for lunch between 11:50 and 1:00 pm Pacific Time."



In my state, you might not need a business license or you might need one on a county-by-county basis. Apparently in Nevada, there is a state-wide requirement that you should know about even if it does not apply specifically to you. Read about it here: http://www.nvsos.gov/index.aspx?page=267



In all likelihood, you will have to file and ask to be exempted from needing a state business license. According to the FAQ, a number of entities are exempt, including



"These businesses must still initially submit the form, WITHOUT FEE stating the specific exemption."



"(c) A person as defined in Title 7 of the Nevada Revised Statutes, who operates a business from his home and whose net earnings from that business are not more than 66 2/3 percent of the average annual wage, as computed for the preceding calendar year pursuant to NRS Chapter 612 and rounded to the nearest hundred dollars. The average annual wage generally fluctuates each year. 66 2/3% of the average annual wage for 2010 is $26,241. "



In other words, if you don't earn more than $26,241 from selling your crafts, after subtracting your expenses from your sales income, you have to file the inital request and ASK TO BE EXEMPTED.



In addition to just wanting to comply with the law, remember that once you have a tax number and collect sales tax, you no longer have to PAY sales tax on the raw materials you buy.

Answer 2

Depends on the jurisdiction. I had to get a sales tax permit when I went into Phoenix (from Dallas) to try to sell at a conference, but did not need a business license. Sales tax is at the state level and most states require it, although that blanket coverage may exist in some states, as for churches and schools. Business permit would be more local and is usually from cities, so might apply to parks and street fairs.

Answer 3

As pointed out by others, the regulations differ in each locality.

Since licensing compliance can often get complicated, you can contact a business license professional for help. Call Business Licenses, LLC at 1-800-679-3611 or visit them online at http://www.businesslicenses.com/services_corporate.php

Business Licenses, LLC provides software and services for the procurement and management of business licenses, anywhere in the USA.

Good Luck!

Answer 4

Most fairs, street shows, carnivals, or art fairs that are public events do not need a license. . That would only be for if U had a store front. Check with local chamber of commerce.

Answer 5

http://www.nvsos.gov/index.aspx?page=267