How to Legally Start a Handmade Business from Home (EASY 5 STEPS!) | Sole Proprietorship vs LLC
Вставка
- Опубліковано 26 лип 2024
- I know the legal paperwork involved with starting a handmade business online might be confusing. But you don’t need to register for an expensive LLC if you’re just starting out. In this video, I'll walk you through the 5 legal steps to set up your handmade business as quickly and inexpensively as possible.
So, many of you guys are looking to turn your hobby or craft into an income and have been asking me about the legal requirements of running a handmade business from home or whether you need to open an LLC. The good news is that you won’t need an expensive LLC and it’s actually totally easy and inexpensive to legally start a business by following the steps I’ll be sharing with you today. Quick disclaimer before we get started though: As you guys know, I'm not a lawyer or a financial advisor.
I’m just sharing what I know has worked for me and thousands of other sellers following official documentation online. However, if you’re looking for legal advice, I recommend consulting with your local government or lawyer for the most accurate and personalized information to you. Also, I’ll be showing you how to legally set up your handmade business in the United States. If you don’t live in the US., the process may be kind of similar, but you’re going to have to look into it yourself for your specific country.
____________
Enjoyed this video? ⭐ I teach a FREE workshop that deep dives on How To Create A Profitable Handmade Business Without Keeping Up With Social Media.
Sign up here: 📌 bit.ly/3EFstnz
____________
🎥 WATCH RELATED VIDEOS:
Starting a Candle Business from Home 🕯
• Starting a Candle Busi...
Fiverr Review: I Paid Fiverr to Make My Logos... Is It Worth It? (LOOK AT THE RESULTS)
• Logo Design on Fiverr....
Subscribe for more videos like this:
bit.ly/SubscribeCHC
____________
Join our FREE FACEBOOK group for getting the support you need in your handmade business. Ask the questions that keep you up at night, help each other out, celebrate good things and grow your creative business!
👉 / creativebizmarketing
____________
CONNECT WITH ME:
🖥 Website: www.creativehiveco.com/
📷 Instagram: / creativehiveco
👤 Facebook: / creativehiveco
✉️ Business Inquiries: mei@creativehiveco.com
#etsyshop #handmadebusiness #craftbusiness - Навчання та стиль
![Lp. Последняя Реальность #107 РОДНОЙ ДОМ [Финал] • Майнкрафт](http://i.ytimg.com/vi/IK3QKzKUlHM/mqdefault.jpg)
🚨NEW FREE WORKSHOP FOR 2022🚨 Learn how to create a PROFITABLE handmade business online without keeping up with social media 🔽
Watch the free workshop here: bit.ly/3EFstnz
Thank you for the information. I was going crazy thinking about all the money I would have to spend on getting my LLC. I'm not stressing out anymore.
Glad it was helpful, Lisa! Thank you for watching!
Finances and any legal stuff is daunting! This helps me process what is important to do first and what I may have to do as my business grows.
I'm glad it's helpful to you, Kilo!
I just gotta say, I'm so grateful to find your channel. I've been wanting to start my own business making all kinds of things, and the information from your channel is going to be so helpful in getting my business started.
Thank you so much, Heide! That means a lot!! Good luck to you and your future business!! ❤️
Thank you so much for information! 🌺 This is exactly what I was thinking about for past month.
I'm so glad it was helpful, Veronika!
I would like to say how thankful I am for you and this video. I am thinking of starting a business and was wondering how to even go about it. I think this is one of the most crucial steps in starting a business. By the way, I'm a new subscriber and I am binge-watching your videos. I am just so glad that I found you and your Channel. Again, thank you.
Welcome and thanks for being here! This is exciting that you're ready to start your business!!
The best place to start is with my free workshop The Three Secrets to Selling Online.
After that I recommend watching this UA-cam playlist!
Let me know if you have any questions along the way!
Thank you so much 😊 this has been giving me a headache as far as legal and what’s the easiest and quickest way to be legal stating out. Much appreciated!
Glad I could help, Lisa! Thank you so much for watching!
This was so helpful and clear, and exactly the information I've been trying to find. Thank you!
I'm so glad to hear this! I love knowing that the information is helpful. Thanks so much for watching!
You was the most clear and helpful you-tuber I can watch here thanks so much for your help I continuously look for you . Was so helpful and relaxing video . ✌🏻
Thank you so much, Sandra! That means a lot to me!
Wow thanks, this is basic, I just recently moved from Mexico to NY and wanted to sell my jewelry online but I want to do it like this and need all this information, thanks so much!!!
I'm so glad that it's helpful to you, Circe, and I hope you had a good move and you're enjoying NY!
You ma'am...are a legend! Very helpful information, yet oddly difficult to find! Thank you
Thank you for watching!
Thank you so much!!!!!! This topic actually keeps me awake lol
I hope you found it helpful!
Thank you! Just the information I was looking for! 😁👩🎨
Thank you so much Robin!! ❤️❤️ Happy to help.
This was very handy information. Thank u 😎
My pleasure! Thank you for watching!
This was very helpful. Thank you.
I'm really glad to hear that! Thank you so much for watching.
Great video. Thank you so much!
You're very welcome! I'm glad you enjoyed it!
You Rock!!! ❤️ ❤️ ❤️ THANK YOU SO MUCH! My dream has become a reality!
That's amazing! I'm so happy to hear that!
Thank you for helping us understand the legalese Mei! I'd love to learn more about collecting and remitting taxes, especially when selling digital products internationally. It's my main roadblock against migrating from Etsy to Shopify. If I make a handful of sales internationally, I feel the amount of time needed to deal with the paperwork and admin will outweigh any profits. OK, plus I just detest finances...
Finances are the worst! They really should make it more streamlined so it's easy for everyone to understand.
Thank you so much for this video!!
Thank you so much for watching! I really appreciate it. 💗
Thank you so much for this!
You're most welcome Davita!! 💕💕 Thank you so much for watching!! ❤️❤️
Thanks for the information
You're welcome, Domenique! Thank you so much for watching!
Yo this helped out so much!! Thank you! I do have a couple more questions though.
1. Do you need the insurance if you're only selling digital art?
2. What are the parameters of the *type* of content I'm allowed to sell? (Like do you need other specific documentation for spicier artwork for example? Or artwork that may have political roots?)
3. What if it's a collab project and not inherently hiring a person? Would you still need an EID?
4. Not a question really, your videos are super helpful and I had to say it again lmao.
Hi there! 1. Your risk of anything like injury is certainly less when selling something digital. However it is good to ensure that your equipment is covered.
2. This can be more specific to your location but in general you can sell anything as long as it complies with whatever platform you are selling on.
3. Having some kind of terms that you agree to in writing is always a good rule of thumb!
4. Thank you so much!
Could you make a video about bookkeeping or how to track spendings and revenue? Love your videos! Thanks!
I actually have a blog post for that! www.creativehiveco.com/review-top-bookkeeping-apps-makers/
I'd love to learn on how you automate or scale up in a creative industry where products are your intellectual property and so tied to the maker. I know you said you use videos to train, but how do you QC? How do you protect your creative property? How do you even teach it if sometimes it's so specialized!? Thanks Mei! Your videos are so helpful and inspiring!! I'm finally getting my act together with your help!
You could start by hiring someone local to you so that you could sit with them to teach them your way of doing things. You could have them sign a contract that does not allow them to copy your process or ideas. Or, if it's so specialized that it's not something you want to or think you can teach to others, you could look to outsource other aspects of your business - social media, supply ordering, shipping.
Great video, however, My LLC cost me under $60. You don’t need an attorney to file a LLC. You just go to the Secretary of State for your state and it takes approximately 15mins. With LLC you are not personally liable if someone tries to sue you, the business is liable.
Yes, that's true - you don't necessarily need an attorney but some people may feel more comfortable doing it that way. Even something like LegalZoom can file the paperwork if you are unsure. But your Secretary of State's office should have forms and instructions, though the fees will vary by state.
ucantrustme10 or Creative Hive--on the LLC form they ask for business street address. I do a craft business out of my home. Do I need to put my home address down or can I use a PO Box? If not, will home address be public? I live in Wisconsin. Thank you
Linda Llanas in my state they would not allow me to use my P.O. Box. They required a physical address. Luckily I was moving soon after so my current address is not on file for the world to see. I would say get a virtual address. It’s a physical address you can use for mail and for business reasons and personal actually. You can find them online and not pay that much. UPS offers it but it is a little more expensive than the others. Good luck!
In Massachusetts and LLC is $500 and then $500 every year for filing the mandatory annual report ($250 by mail)
@@snowvalleylodge8553 that’s insane
Thank you thank you so much!🌺❤️
You're so welcome! Thank you so much for watching - I appreciate it!
You are an amaizing person 😊😇
Thank you so much, Pedro! You are too as well!! ❤️
Thank you
You're most welcome! Thank you so much for watching!! ❤️
Thank you very much
You're welcome! Thank you so much for watching!
Thank you for this super helpful video!!! Do sole proprietorships need to get a sales tax permit to sell online or in- person?
Yes, anyone who sells anything needs to have a sales tax certificate.
This video is very helpful! Can you please explain more in depth what's the insurance for?
It's for protection against damages and liabilities your business might incur. This is a popular crafters' insurance site, it will give you even more information: www.actinsurance.com/crafts-liability-insurance
@@CreativeHiveCo Thank youu!! 🤍
Thank you Mei, your videos are very informative. You had asked what else a viewer might like to see, and my request is if you could do a video about how to start and run a digital based online business. I do machine embroidery files from my own designs that I create. To sell online they would be done as a digital download. I am in the beginning phases of my business and would appreciate any direction or tips you wouldn't mind providing.
Gail, I think I've got you covered! Let me know if this is what you're looking for: ua-cam.com/video/pq-9rhrZ4C8/v-deo.html
@@CreativeHiveCo Thank you Mei, yes this does help. I guess I just need to jump in and do it - I have never done a digital file product so that is what I am little intimidated by. Also I am working on my photos - I want to make sure they are good quality.
The hardest part is diving in and getting started! 🙂 If you'd like advice from other creative business owners you may want to join my Facebook group for makers: facebook.com/groups/creativebizmarketing. If you'd really like to do a deep dive into your business, I'd love for you to take a look at my A Sale A Day course: www.creativehiveco.com/a-sale-a-day-business/
Thank you so much I'm just starting out again I would like to know when you go to the site USPTO what do you put in to see if your name is being used to not I can't find it🤔🤔🤔🤔
You need to do a trademark search and then just type the name you want to use.
ACT insurance doesn’t cover candles. Do you have any recommendations for a small candle business? 😊
You may want to check in with the company you do home/renters insurance with. Sometimes they offer small business plans, or they may be able to recommend someone to you.
thank you so much for these super helpful tips because starting an llc was super intimidating and confusing to me, but I still have a question if I wanted my business name for example to be “Em’s Crystals and Creations” and it was available where would I register the name, would I still do it through my local/county agency?
Thank you so much for watching Emily!! ❤️❤️ Business registration matters differ from state to state and country to country so I highly suggest you reach out to your local chapter for some guidance. If you're from the US, you can also check out sba.gov for some guide. Hope that helps! Good luck!!
Thank you for this video! I’m thinking on create my own website, Pardon if this question goes beyond permitted ....what do you know about Pattern( Etsy) would you compare it with Shopify?, is it like having “another shop in Etsy “ or it’s completely independent from Etsy. I appreciate your input but I respect if you don’t want to talk about it. Maybe a video about it? Thank you!
Hi Juana! If you have an Etsy Pattern website you are just using Etsy with a website landing page. It's like an Etsy extra. Shopify is its own platform and you can do so many more things with it. I encourage you to watching this series comparing Etsy to Shopify: ua-cam.com/play/PLd52Nr4SNc0kODBjhMgeGv-yfGBzUoOFp.html
Creative Hive thank you Mei, I’m walking slowly towards my own website and Shopify sounds good just because I trust your knowledge
Thank you for saying that, Juana. I really appreciate it!
What taxes other than sales taxes am I required to pay as a Sole Propriertor ? Thank you!
Note: I have a : Minimal activity business license in Tennessee.
Income taxes! You need to include your profits for the year in your federal income tax using a Schedule C. I recommend taxjar.com for tax help!
May, can you please go into details about a homemade soap business for ladies ?
Sure can, Leanna! 😉 ua-cam.com/video/LIrtYUYVwBE/v-deo.html
I try to find insurance. However they said they do insure online businesses. Is the name of the insurance called ACT insurance that I should mention or ask for general liability?
The company is actinspro.com. They specialize in craft business insurance.
I've been working on starting up my handmade business. I mainly work with resin jewelry. For things handmade like this, I can sort of make "duplicates" but no piece is the same because it's not manufactured. I had 5 rainbow pendants I made, but even the colors swirl or will run differently in each direction. Each one is still beautiful but never the exact same. It's important that the customer knows which one they're getting. Is the best way to do this to list each one individually? I can't take "stock photos" because what they get will be slightly different than the photo. Right now I plan on listing each one individually, as a stock of 1 item, with really nice and clear photos of the pendant. Is this the best way to do this?
In this case when they are not exact, you need to have a photo of each one so that the customer knows what they are getting. It will save you some time on the back end when you receive messages asking why it doesn't look like the one in the photo.
Alternatively to posting individual photos of each item, you can show a group photo as well as closeups, and in the listing/description state that due to the nature of handmade items, no two items are exactly the same, as there are variations in color and how the swirls form, therefore, you can not guarantee that they will get the exact item shown in the picture nor can you guarantee that any 2 items will match exactly.
Most mature adults understand and accept this. For the 'karens' out there, the description covers your assets. Even if you offered exactly what was photographed, you can't exactly reproduce the design, and some people will nitpick to death the perception that you sent something different from the picture because they decided so, so it's best you make the variations disclaimer, especially for resin. Unless you plan to spend hours positioning glitter and inclusions exactly, matching colors exactly, photographing each and every item of 100s made, etc. That's just adding unnecessary work for relatively inexpensive items. You'd only want to do that if you were working with precious metals and jewels.
If you choose to make bespoke or custom items, the only time you would offer a refund would be if YOU made a mistake )ie, spelling a name wrong or putting a wrong date, etc). If they provide incorrect information, it's on them. They pay to have it corrected (although if your cost of time and materials is low enough, you might allow one correction for free upon the return of the incorrect item so you can destroy it if you have a quality control in place).
Remember to get a 25%-50% non-refundable deposit before beginning any custom work, including designing the piece.
Hello Mei. This may be a little off topic, but can you make a video on the benefits of growing a Facebook page? I currently do not see many benefits to growing my followers, but I noticed that you do have a large following so there must be some benefit you are receiving.
From what I can see the engagement is super low and the only real way to grow your followers is by paid ads. A video explaining benefits, if any would be really helpful 🙏
Here are some links to start with:
ua-cam.com/video/m8cEtiatTn0/v-deo.html
ua-cam.com/video/Y8NApVMEVnU/v-deo.html
ua-cam.com/video/nbS1dp-SZE0/v-deo.html
One of the biggest benefits to having an active Facebook page is the ability to do Facebook ads to target you ideal audience. It's an invaluable resource.
@@CreativeHiveCo Thank you so much. Your videos have been a big help.
You are so welcome, and know that I totally appreciate you watching and for your comments. 💖
Hi there ! Sorry if this is a dumb question I just want to make sure I’m understanding correctly, I am registering as a sole proprietorship, do I also need to register for a DBA? Also I read something in the comments about sales tax certificate? Can you explain more about that?😅 I am planning on starting a handmade business through ETSY.
If you are a sole proprietor, the DBA is your business name. howtostartanllc.com/how-to-file-a-dba A sales tax certificate is you registering your business with your state's revenue department if your state charges sales tax. You are required to collect and remit sales tax for sales in your state to them.
Do you tested your candles in a Lab (one from every type you have) to get the approval they are not toxic ? Thanks
I don't make candles, but I suppose you could. If you research the ingredients you use, though, you could probably skip this step. Clean burning soy wax or beeswax don't have chemical issues since they are naturally derived. This post may help you with your decisions: theeverygirl.com/non-toxic-candles/
@@CreativeHiveCo you are so much appreciated for all the valuable content you sharing and helping people with their business and gave a response to every question. Thank you so much 🥰 Wish you growth and success in everything you doing. All best 💕
What is the NAICS for homemade products sold online? I will be selling whipped body products, sugar body etc..
You can do a narrow down search here: www.naics.com/search/
Me and my friend's first names begin with M and J. do we need to register if it is called MJ Jewellery?
also does this apply to online biz
You need to register any name you are using for business, regardless of what it's called. This relates to both online and in-person businesses.
Hello , I’m in Columbus Ohio, I try to start clothes homebase business, I just want to sell legally so , for DBA do I need to go county or bank ? And for permits who do I talk ? If I have copyright do I still need to register my business? Thank you
Here is the page on registering your business in Ohio: tax.ohio.gov/wps/portal/gov/tax/help-center/resources/tax-education/starting-a-business-step-2 I would contact the number there if you have questions, that way you will get information specific to your area.
So question, do you have to be earning income from your business to be able to take advantage of tax deductions or does it only have to be a business you created with intent to create a profit? So many questions...
If you have a business set up, then you can take deductions for things like office expenses, supplies, travel, etc. But something like this would best be discussed with a tax accountant just to be sure!
Because I wanna start a small buisness online and post it on tiktok so other are able to see. I just wanna know it I have to do anything to start. A small buisness online. I wanna sale phone cases and lip gloss but try to Luke decorate the phone cases and for lip gloss to try and find some to sell or maybe make some. I just wanna know what to do to start out
Here's a video playlist on how to launch your business from zero: ua-cam.com/video/RIAlRz-0cv0/v-deo.html
I`m looking at ACT Insurance web site....Is this mainly insurance for when you do craft shows??? The 1-90 days of continuous coverage seems short......I`m confused??
Hi! ACT Insurance is tailored for artists, crafters, handmade jewelers, sculptors, clothing vendors, potters, art & craft show vendors, etc. You can also refer to this link for some info: www.actinsurance.com/who-qualifies-for-act-insurance-2 If you have any questions or clarifications about coverage, it would be best to reach out to their Live Chat support (just click on the button that says "Chat now" at the bottom right corner of their website). Hope that helps! 😊
How long will it take to complete this process in California
Right now due to COVID I couldn't say for sure.
We will be starting home made doll business but will be doing LLC , im afraid if something happens they can go after our home.
Registering as an LLC is a good way to keep your personal assets separate.
I'm so confused on all this. Which one of those things give u a tax id? I thought the EIN did. I would be sole proprietor, only myself working.
Yes, the EIN is your federal tax ID. You may also need a sales tax ID for your state.
My wife want to start a small business with Paint Pouring, but I`d like to to the online sales/design etc, would a Sole Proprietorship be the right way to go about it or would that fall under General Partnership??
Hi! It would be best to consult this with an expert or your local government. Laws differ from state to state and country to country.
Can I just register my name under a assumed name/DBA under my state before a business? I'm just doing handmade stickers from home and as a sole proprietor.
It will depend on where you're living. This article from the SBA might help you: www.sba.gov/business-guide/launch-your-business/choose-your-business-name
I registered for business licenses I asked them making sure it was a dba how do I know I registered a dba
Typically, if you've successfully registered a DBA, the paperwork or licenses issued by the appropriate authority should clearly state the DBA name alongside your business's legal name.
If I’m trying to start a small business how would I register in California
I would go to the Secretary of State's site and see what they say you need to do: www.sos.ca.gov/business-programs/business-entities/starting-business
What if I don't make the minimum for taxes on a small business? Is getting all this worth it? Or should I wait till I am making that mininum amount to do this?
No, you shouldn't wait to make your business legal.
@@CreativeHiveCo Then what should I apply for? Only my friends and co-workers have and are buying from me. I say that b/c I have a few (2-3) projects in working progress for those people. I am just not making the min for taxes as of now with my business, so its kinda a side job. That is why I asked that question last week. I will talk with my local gov't about this, so any help is appreciated. Thanks, Mei!
Just to confirm to be come a sole proprietor the business name is my own legal name and we could add something like “illustrations” after it and still be fine🤔...what if it’s a nickname followed by your last name and then “illustration” after it...would that still be ok?🤔
Yes, this would definitely work. You can also contact your state's Secretary of State's office - they are incredibly helpful with business registrations.
@@CreativeHiveCo thank you! I was thinking... I have an Etsy shop and the Etsy shop name is not my name...do you know if I have to get a dba for it even if another sellers Etsy shop name is similar to my Etsy shop name?🤔
Can you please give me the website for the insurance for crafter if I’m berely beginning. Thank You 😊
Hi Myriam! Here's ACT Insurance's website for your reference: www.actinsurance.com/ 😊
Thank You 🙏🏽 ☺️
Just subscribe of all the usefull tips
Welcome aboard! ❤
Hello Mei! Do I need to be 18+ to start selling?
Legally you need to be 18 to register a business, but your parents can help you before that. You might also like this video: ua-cam.com/video/HYWWQT4lqdA/v-deo.html
@@CreativeHiveCo oh okay. But I'm not even a teen yet but my parents are okay with me starting a small business. I'm 12 lol
What is an LLC?
Hi Carole! Here are some articles that explains LLC:
www.sba.gov/business-guide/launch-your-business/choose-business-structure
www.forbes.com/advisor/business/what-is-an-llc/
i want to sell crafts i made from home just on facebook not etsy. just like wreaths, paint on glasses and wine glasses and plates, some other things. I don't want a huge full time business. I'm a single mother of 2. Im in indiana. I don't know if i need permits or the tax thing. I just want to sell to people around me not ship to people. I don't want to sell at craft shows i dont have the time for that since i'm a single mama. I just don't know who to ask i have these questions. i haven't found any youtube videos to help me answer my questions. i don't want to get in trouble and go to jail.
If you are selling anything in your state, then you need to look at your state's selling regulations and standards. inbiz.in.gov/start-business and www.in.gov/sos/business/2428.htm