|
As I understand it, at least in NJ, if you sell it here then the state gets a cut. Enforcement officials occasionally do sweeps of art and craft shows to make certain that the law is being adhered to, even by out-of-state participants. I file quarterly and it's no big deal here. It takes me about five minutes to send off the check. And I think when you collect sales tax it makes it clear to your clients that you take your profession seriously enough to consider yourself a business.
A tax number also enables you to buy materials without paying sales tax on them, since the presumption is that it will all come right when you collect sales tax from your customers or clients for the product. And being businesslike allows you to depreciate large ticket items like studios, and to write off computer and camera repairs and other art-related expenses. I also have a separate business account at the bank at my accountant's recommendation, and I try to pay all art-related expenses out of that account. I provide my accountant with records detailing expenses and receipts at tax time and it makes it all pretty easy.
HTH.
|