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View Full Version : Need Advice: Starting a cosplay shop.


Sakura_Chang
06-02-2007, 10:24 AM
Hello everyone!

Just as the title says i'm needing some advice. I am currently working on creating a store online to sell some cosplay and non-cosplay items. As i am getting closer to finishing my site i'm getting worried about what i should consider doing regarding taxes and the like. i have been told that if i make under 4k a year that it's considered a hobby and that i do not have to show it on my taxes. but i've also been told that i need to get a sales license for my parish. My question, i guess, is what have you(or any one else you've known) done about the business end of starting a cosplay shop? i don't want to get in trouble with the government for anything and i want to do this correctly. I still have a full time working job. so i know for sure that i have to show that. but i don't know what to do about this "hobby" of mine. if you have any info/advice regarding starting your own arts/crafts/cosplay shop, pleeease let me know.

also if this is in the wrong category i'm sorry. please move it to where it belongs.

Jonetsu
06-03-2007, 12:03 AM
what you may want to do is actually call your city council, town hall or the like. some sort of municipal building-they should be able to give you some more specifics

heki-chan
06-03-2007, 01:49 AM
In most cases you can just report your cosplay shop earnings as part of personal income. This is unless of course you want to register the business name, in which case you'd have to do some more paperwork.

Sakura_Chang
06-03-2007, 09:34 AM
so no one has any "hands-on" experience with this? I'd really like to hear from somepeople that have opened up their own shop. as i'm getting info from people here that are completly different. one of my friends has been selling arts and crafts for years and has never filed taxes based on the fact that it's a "hobby" and not a business and makes under 4k a year. while my roommate is telling me to go get a business liscense. so you see why i'm confused. and if i do claim it on my taxes i would most certainly do it as self employeed so that i can take my material costs and other items as a credit. but if i don't have to show it due to it being a hobby. would be nice.

it's hard for me to go/call to the town hall here due to the governement type places are only open while i'm working. mon-fri 8-5. though i guess i could on my 1 hour lunch.

edit:

http://www.irs.gov/newsroom/article/0,,id=169490,00.html

i think from reading this that i will be able to consider opening up my shop as a hobby as i will not depend on it for income. it's a side hobby. now..in the future that i see that it will make a great profit i can quit my job and that it will be a small business. but for now. i highly doubt i'd make over 4k a year on this due to time contraints and other issues.


if anyone reads that differently let me know XD

KittyCanuck
06-03-2007, 11:31 AM
The IRS should have the answer you're looking for (it's their job to, after all) ^_~

http://www.irs.gov/newsroom/article/0,,id=169490,00.html

http://www.irs.gov/businesses/small/article/0,,id=99336,00.html

You can also call them and speak to someone directly if you have specific questions. You may still need to contact your city council and your state/county for full information.

Yunalicia
06-03-2007, 11:32 AM
PSsst! Heki-chan did/does have a cosplay shop! lol! (I don't know if she still has it)


But assuming your in the US it would be different than hers. Just look up as much as you can online then call whomever you need to call for further questions. I am pretty sure you don't need a business lisence until you make over so much so don't rush out to get one yet.

Glance over eBay and see what they have to say there since a lot of people have shops of both natures on their site. eBay has amazing tutorials and look ups so I would give it a search.

Sakura_Chang
06-03-2007, 12:14 PM
^^;; taipa i posted the first link in my post above yous lol with reasonings that i am a hobby currently and not a business. due to the fact that i will not fully depend on this as income. i most likely will put any income into personal income

yuna- ah did not know that lol. but yes i'm in the us. yeah i'm pretty sure about not needing a business lisence either. hmm never thought to check ebay, will have to do so ._. even tho i do sell some items through there.

i think i'll just go as my friend who does the arts and crafts in more detail. i'm sure she'd know for sure.