Wife's side business , time to get a business license?

We married to the same chick?

Interested in this as well. I thought it was a hobby and then she made enough over Christmas to reinvest it and bought a computerized embroidery machine.

Want to know the pros and cons of getting a business license. I assume llc?

Haha yea I bought her the silhouette to get her to stop buying overpriced shite on etsy, the damn thing has paid for itself

She shared a Mardi gras shirt this morning on Facebook and has almost 20 orders for it in a few hours

Made almost 2k during November and December

We buy the 30oz rtic in bulk and sell for around $24 each

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computerized embroidery machine

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bought her the silhouette to get her to stop buying overpriced shite on etsy, 

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If you don't mind me asking could you guys list a link of equipment you guys have, or the name of them? Very interested to get my wife into this stuff.

What kind of license is required for that kind of stuff?

You don't need anything to put the income/expense on a tax return.

She should be collecting sales tax and sending it to the local tax office

Our record keeping is sketchy at best especially the expenses part because I wasn't expecting her to make enough to claim but if we start going through all that I'm gonna wanna work in some deductions which is why I feel l need to go the small business route

Track it on quickbooks. Easiest one to use

This is not your question but you need to let whoever writes your homeowners insurance know about this side business or at least read your policy to see what exclusions apply. If you make over a certain amount of money in a home based business depending on the policy your insurance might not cover related liability claims. Like if some lady comes over to pick something up and she slips in your driveway and sues you might not have coverage. Or if one of her machines burns the house down you might not have coverage without the specific endorsement. It's not that much more a year but it's worth it for sure.

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As far as a local business license goes I would simply wait until they ask you to buy one.

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When does a hobby become a taxable business? How does the taxing body know? When does a pond become a lake?

Unless its a regulated business that would require certification there's not usually a license needed.

BUT, you do need to look into sales tax and income tax as those will get you into trouble. Contact your local tax collector's office to get sales tax info.

If she is doing more than say $2500/ year the best thing to do is open a separate checking account and run ALL expenses and income through that. Get a ziploc bag for receipts or a couple and organize them that way. Doing those two things will allow you to have a very easy tax time.

We got the separate account set up. Mostly because I was tired of her saying, "I made 30 bucks on this shirt."

Well yeah, you used our checking account to buy the shirt, then sold it and kept all the money. So now she has to account for her own overhead.

The application I'm making her tracks all orders, dates, prices, products, etc. It will make it a no brainer.