Answers

Tax ID for stained glass products hobby

Asked by: valerie  — 18 February, 2013

Hello, if I make stained glass products as a hobby will I still need a tax id number? Is there a specific amount of that has to be made before it is no longer classed as a hobby?

Answered by: admin  — 18 February, 2013

Valerie,

If you are selling your glass products then you are conducting a business. Every business (with a few exceptions, such as single member LLC with no employees) is required to obtain a federal tax id (also called Employer Identification Number).

If you would be selling any of the stained glass products to buyers in your state, you would indeed require a state sales/use tax id to collect sales tax from those buyers, unless your state and local jurisdiction do not have sales tax.

There really is no specific amount of sales required or allowed before you would require this permit, although some jurisdictions do allow small amounts of sales being done with no need to report.

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