If I am going to sell in an art fair and is my first time, and I am not a business yet, do I have to charge sale taxes and have a sales taxes I D to file? I am lost and inexperienced, I don´t know what to do! Please someone tell me my show is in 3 weeks!!!!! and I don´t know if I need to file paperwork before! Thank you... Misha
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Thank you Jan,
I got my sales ID and I started filling monthly as you said,
Thank you very much for the advice. It seems that I have everything I need.
Have a great week! Michele
Jan Raven said:
Whenever I am accepted to a show in a new state, I check with their Department of Revenue online. Some states require anyone selling in the state to register for a business license while others do not. Some states make it very easy to calculate, file, and pay the sales tax (Nebraska is the current gold-standard in my experience) while others are infuriating, complicated, and just an overall PITA. Illinois is somewhere in the middle. Even if you only do one show in the state, for the first year you have to file (online) on a monthly basis and then wait for them to send you a letter in February saying, Gosh, we think you should just file annually. Duh. Anyway, do your own research with each state's Dept. of Revenue; don't just rely on the information given (or not given!) by the show organizers. Collecting and paying sales tax is YOUR responsibility.
Whenever I am accepted to a show in a new state, I check with their Department of Revenue online. Some states require anyone selling in the state to register for a business license while others do not. Some states make it very easy to calculate, file, and pay the sales tax (Nebraska is the current gold-standard in my experience) while others are infuriating, complicated, and just an overall PITA. Illinois is somewhere in the middle. Even if you only do one show in the state, for the first year you have to file (online) on a monthly basis and then wait for them to send you a letter in February saying, Gosh, we think you should just file annually. Duh. Anyway, do your own research with each state's Dept. of Revenue; don't just rely on the information given (or not given!) by the show organizers. Collecting and paying sales tax is YOUR responsibility.
The benefit you will get is that you will not have to pay sales tax on the materials you buy to make your art. Have a copy of your new sales tax certificate and bring it with you when you go shopping for supplies.
You absolutely do have to register as a business, have a tax number and collect and pay sales tax. Filing is fast and free online at https://www.revenue.state.il.us/app/ibri/regguide.html. It takes just a few days to receive your certificate.
I don't know the laws in Ill., but theoretically yes. Most shows expect you collect sales tax and file at the appropriate times. In some states you don't have to get a tax id # if you only do occasional shows. You just fill out a form and pay the taxes due at the end of the show. I also know some people who do not have sales tax #, don't collect sales tax and don't file. I don't think this is legal but... Did the show not ask you for your tax# in the application? How big a show is it? The bigger the show I would think the more important it is to follow the letter of the law.
Replies
I got my sales ID and I started filling monthly as you said,
Thank you very much for the advice. It seems that I have everything I need.
Have a great week! Michele
Jan Raven said:
Sue