Licence Required?

bobbywett

bobbywett

Joined
Jul 23, 2006
Messages
1,231
Hey Folks,

Just got an email from my sister who works for the PA State Police. She said that I need a license to sell my knives. Anyone with info about PA licensing requirements, or any other state's regulations, regarding sale of knives would be greatly appreciated. :confused:

Thanks a Bunch,

Bob,

Hershey, PA
 
what kind of knives you making

PA business license is all i have ever heard of and yes i have mine
its so they dont miss out on any taxes
 
bobbywett said:
Hey Folks,

Just got an email from my sister who works for the PA State Police. She said that I need a license to sell my knives. Anyone with info about PA licensing requirements, or any other state's regulations, regarding sale of knives would be greatly appreciated. :confused:

Thanks a Bunch,

Bob,

Hershey, PA
Click to expand...

Respectfully, maybe you read into it too much, and the rule isn't knife related.

some localities require you to submit for permits (temporary business licenses) just to have a yard sale. So a licence to sell knives, maybe a licennse to sell anything.
 
Yep, business license with yer tax number is all that's required in Pa. Ed the Thug wants his share too. You may have local ordinances but for www sales, how they gonna know?
 
I just picked up the application for my tax number/seller's permit. $20 just to file it.:rolleyes: Like the others said, it's so the state can get their cut. But it's also so I can claim expenses. I bought a bunch of tools and stuff already this year; it would be nice to be able to deduct that. Or part of it. I should probably contact a professional...
 
James,
Having a competent professional you can trust is really worth it, don't go with H&R block, pick a local. If you want go and see a few and introduce yourself in a month or so. Just to let you know it is allowed for the business to lose money in the first 3 years, but after that if you don't show some gain and they will consider it a hobby. The profit doesn't have to be much, my second year my profit was something like $20, but it still counted.
Thanks,
Del
 
Del, my Dad went to the same independent guy for many years, he's a family friend. Since Dad passed away last year I need to talk to him about the estate, etc. So I'll bring it up with him then.

Taxes/business are kind of like electrical work... I know just enough to know that I don't really know what I'm doing. :D
 
be aware that if you get a buisness liscense and make deductions on taxes for tools / expenses... you MUST contact your insurance company, because your shop is no longer covered under your standard home owner's insurance because you've become a buisness. Your rates will probably go way up for your insurance for your shop / tools. The last thing you want is an accident to burn down your shop / home, and then your insurance claim to be denied because you were 'running a buisness' which isnt covered under 99% of home owners policies.
 
Thanks for the tip, Justin. I wouldn't have thought of that. I also need to look into local zoning regs... I don't want to get in trouble with the city, either. I heard they can be kind of fussy about home businesses. Do you think the fire dept will want to inspect the shop too?
 
birdog4 said:
Yep, business license with yer tax number is all that's required in Pa. Ed the Thug wants his share too. You may have local ordinances but for www sales, how they gonna know?
Click to expand...

Up here, they're picking on the fleabay power sellers and apparently have the authority to summons sales records of Canadian ebayers so they can make sure that they are paying all their dues.
 
in a way i feel bad for my tax collector here in PA its far and few between that i sell here maybe 2 knives a year instate) in state im right on the state line and the ppl with $$ just dont live here
most locals look at me like im a mad man when they ask how much a knife might cost
 
Thanks for the replies, I'll have to investigate my options with an accountant. Gonna have to do something, cause people are asking me to sell some. Don't want to get the tax man angry.
 
I have sales tax licences in NY (where I live) plus PA and Maine since I do shows in NY, PA, Maine, and New Hampshire (no sales tax in New Hampshire) gettin a business licence in NY is a locality by locality thing, I'm not sure about PA. My first DBA cost $20.00 in 1991, when I moved to Syracuse 5 years ago I think I paid $37.00. My tools are business expenses, and deductible, hammer-ins are deductible, steel is deductible, propane is deductible, travel to shows is deductible, my business insurance is $350 a year for $1,000,000 liability, theft, etc. unfortunately my deductible is higher than the value of the knife that was stolen last year :(
Pennsylvania wants sales tax reported quarterly, takes 20 minutes, and as long as I get the report in on time, it costs nothing unless I have sold something in pennsylvania that quarter.I am low enough volume that I file sales tax with NY once a year, and Maine once per year.

Going legit has its perks, having a real business opens doors with suppliers, I have dealerships for things, I have a line of credit with Grainger if I need it, as a legit jeweler with a DBA, tax numbers etc. I can deal with "to the trade only" suppliers. when it came time to buy parts for my Plymouth Duster project, the local Dodge dealer gave me the wholesale price instead of retail since I have a DBA (not supposed to but . . .)

just make sure you keep accurate accounting, then it will add probably an hour to your tax preparation, simple schedule C form is no big deal, I do my own taxes.

-Page
 
If you're going to open up a "can of worms" with all this licensing business, you'd better go all the way and form an LLC w/product liability insurance.
 
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