Here are some helpful websites and advice that I found in my research. None of these websites are mine-obviously-and they are to be used as reference materials only. I am not giving any legal advice nor claiming to be an expert in the topic. I am not promoting these websites. They were helpful to me and my situation. I wanted to pass them along so if the subject matter interests you, please feel free to click and read. And, once I get my business name registered and tax ID assigned, we can all celebrate together!
I did a little research before I started RagsReborn last year. I reviewed the Oklahoma Tax Commission website and talked to a vendor friend of mine. I concluded that I would only be participating in occasional sales and the functionality of RagsReborn would be more as a hobby than a business. I would collect taxes and turn them into craft shows as requested but I didn't need my own tax ID. Almost all of the craft shows I attended provided a tax form at the end of the show for me to complete and remit money. I also came across this little article: How To Sell Things You Make Without A License.
Earlier this year, I spoke again with my vendor friend (so much thanks goes out to Marie of Glass Soldier Gifts... she talked me through my first year of craft shows. Her knowledge and friendliness has been much appreciated!!) and she strongly advised that I just get my tax ID. If I don't make any sales in the month, I don't have to report. If I do make sales, then it's a super easy process to report online. Many craft shows ask for your business FEIN anyway so why not have one? It's convenient to remit everything to the craft show, but it's also good to take on that responsibility yourself.
I also called the Oklahoma Tax Commission. I spoke with Monique who informed me that anything more than three craft shows a year does not qualify for "occasional sales." She suggested that I apply for my tax ID online immediately. She echoed Marie's advice in that I only had to report when necessary and the entire process is simple & can be done online. She also stated that if I wanted to register my business name with the Secretary of State (something she highly advised that I do), I would need to get that done before I registered for my FEIN.
Then today, I delved in further. Full on research mode! I want to grow RagsReborn and participate in more craft shows. I want to have a heavier presence on Etsy. I want to really promote my sewing of custom orders and gain an actual customer base. I legitimately want to be a small business! Here's what I found:
Answers courtesy of the Oklahoma Tax Commission website.
Since I started out as a seller on Etsy, I went to their discussion forum first. Etsy has a really good community when it comes to providing knowledge and advice. Etsy advised that I consult the government so that was my next stop.
Oh what fun it is to wade through legal research! At least it's done and I feel better about RagsReborn. I am crossing my fingers that this all goes live before my first craft show on Friday February 26th. That's still weeks away so I should be fine. The registration for a tax ID supposedly only takes 15 minutes online. And, I already made sure that RagsReborn Gifts wasn't taken as a business name in Oklahoma so the registration with the Secretary of State shouldn't be too much of a hassle to approve either. This is me thinking positively.
One more thing I have come across- using licensed fabric (and t-shirts, in my case).
I was worried about this at first but quickly dismissed it since there are "junkers" and "upcyclers" all over Etsy and who participate in craft shows. I have seen numerous quilts, Christmas ornaments, coasters, jewelry & hair bows boasting college logos, movie and TV characters, etc. If you can get your hands on a yard of Oklahoma Sooners fabric, you can craft anything out of it. Very few of these crafters have licenses, myself included.
This spring, I will be participating in a show that strictly does not allow original collegiate merchandise. I called the show organizer and explained my product to her. I wanted to be sure that I could still participate. She said that as long as I am using licensed t-shirts and fabric, my products will be fine. They are not originals and I am not reproducing the collegiate logos. But, she warned, if I sew a pillow that is orange and black with my own interpretation of the OSU logo on it, I will be asked to leave.
Fortunately, I have not had any bad experiences with copyrights and trademarks. (knock on wood) I have a sign stating RagsReborn Gifts is not associated with any of the brands or images on this item and does not own the rights to the image posted on my booth at all my craft shows and the disclaimer is listed on my Etsy shop profile and on each item description profile.
I have been contacted once through Etsy by a member of Fall Out Boy's merchandising team who asked me to remove a pillow I had made using one of the band's t-shirts. No problem. I immediately removed it and wrote a polite and apologetic reply. It was all handled very professionally.
Then a few months ago, I received a message from a fellow crafter who asked if I have ever gotten in any legal trouble over my products. No, I have not lest the Fall Out Boy incident. I wouldn't even call that a bad experience since no harm was really done. She was surprised and expected that I had received numerous cease and desist letters. Since the possibility of product confiscation and forced closure of my Etsy shop is becoming a reality, I better do some research.
From whatthecraft.com
My apologies if this blog was a little dry but I did say in the first paragraph that I would be doing my homework today. And homework is never titillating. But it's done now and it's back to sewing for me! The spring craft show line up will be revealed next week!!
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