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Questions about ... selling stuff

Kerry Burton

Kerry Burton

Member
Messages
1,163
Location
Orem, Utah
I'm not really sure how to approach my question, but I'm hopeful that someone here will be able to send me in the right direction.

My wife and I are thinking about going to an upcoming weaver's conference in Reno, to sell some shop-made items from a booth in the "marketplace". The Vendor Book for the event says,
The Vendor assumes responsibility for securing a vendor license and collecting all applicable federal, state, and local sales taxes.
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We don't know the first thing about this kind of stuff.
  • I assume a "vendor license" equates to a "business license"?
  • Does that mean we would need to create an actual business in order to see this through?
  • I read something (elsewhere) about the option of forming an LLC in "tax-free Nevada", but not sure how appropriate that might be since we live in (and would normally operate from) Utah.
I'm not looking for free MBA-level advice here, just a pointer or two on how to start figuring this stuff out. :doh:
 
Check with the state and municipal authorities in Reno, Nevada and pose your questions to them. They would be the issuing parties and they will direct you correctly.
 
Wish I knew more about whatis required here in Nevada, but I've got no idea. I'm trying to figure out how it would be any different from selling something on Etsy, or having a booth at a community garage sale.

We did the community garage sale earlier this year. Some of the folks there looked like they do it a lot more than just 'sporadic', but I didn't ask anyone about it, because it didn't even cross my mind.
 
Having been a vendor at a 'show', I remember the city wanting money for a temporary business license and the state making sure sales taxes are collected. Often the venue can also tell you what is required. Remember, this is just another way to collect money off of you and the show promoter/venue coordinator are in collusion, errrr, cooperation, to collect the fees and taxes and you become the equal opportunity provider of same.
 
Carol Reed said:
Check with the state and municipal authorities in Reno, Nevada and pose your questions to them. They would be the issuing parties and they will direct you correctly.
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Doing this online might be more informative than asking a clerk who might not know but will possibly give misleading answers. Plus, online is anonymous.
 
Respectively disagree, Frank. There is no advantage to being anonymous. Work through the venue (the place where the show is being held). They do this all the time. They are also the ones responsible for compliance. Problems they don't need, especially at set up time. BTDT.
 
Found this, basically says that the promoter needs to help you out (as per Carol):

https://tax.nv.gov/uploadedFiles/taxnvgov/Content/Forms/One Time Instructions.pdf
VENDORS–EXHIBITORS–PARTICIPANTS
If you are an exhibitor attending a one-time special event, tradeshow, convention or a participant in a flea market, contact your event promoter to declare if you will be a vendor transacting sales of tangible products at the vent. The promoter will provide those VENDORS a “one-time sales tax return”. Vendors will be required to complete this return and remit it with the sales tax collected back to the promoter at the end of the event. The romoter will forward the completed return and your payment to the Department on your behalf. All checks should be made payable to the Nevada Department of Taxation. If you sell at more than two events in Nevada during twelve month period, you must register with the Department and obtain your own Sales & Use Tax Permit. If you require further assistance contact the Department’s Call Center at (866) 962-3707.

Reno has a short faq with some further contacts if you have other questions.
https://www.reno.gov/government/dep...division/resources/frequently-asked-questions

Temporary permits
Applicants that wish to conduct a business on a temporary basis must apply for a Temporary Permit. Please contact the Business License office at (775) 334-2090.

Special events, activities or other public events
Apply for a special activity or event permit through our office. A special activity is an indoor/outdoor activity or unlicensed business activity on private property. Examples include a trade show, craft show or fair, off-site public sale or various charitable activities. A special event involves street/sidewalk occupancy or City of Reno parks. Examples include any organized activity conducted by a person for a common or collective use, purpose or benefit, parades or formations, concerts, circuses, fairs, festivals, community event or mass participation sport (such as marathons, running events and bicycle races and tours). Additional information is available at www.reno.gov.

Do I need a sales tax permit?
Every business operating in the State of Nevada requires a Sales Tax or Use Tax Permit, or exemption, issued by the State of Nevada Department of Taxation. To apply or for questions regarding sales or use tax, contact the Nevada Department of Taxation call center at 866-962-3707.
 
as for me, i needed to get a minnesota tax id, for paperwork purposes, under the company name. then i went on to register the company with the state, then modified to LLC. i pay the sales tax to the state myself.
 
When I was doing shows in California, my experience was much like Dan's. Most shows required me to have a state tax number, and some required an LA business license, so I acquired both, and both were done online. (After setting up a Sole Proprietorship business, also done online.) At the one show I did in Brentwood, a rep from the City of Rolling Hills came by my booth and sold me a temporary business license on the spot for $25 (as I recall). I suspect the city made a few thousand bucks that day for giving us vendors the privilege of selling their residents needed and wanted items. :rolleyes:

As an aside, for at least 6 years after I shut down my business and moved to New Mexico, I would get yearly notices from the City of Los Angeles telling me that my business license had expired, and they wanted me to send in the fees. And every year, I would reply back with a formal letter telling them that the business was closed and no longer even located in California. And every year, a few weeks later they would send me my new business license...for free. They finally stopped after I wrote 1" high letters on the application with a bold Sharpie pen and reiterated the fact that the business was closed and I was no longer in the state, followed by as many exclamation points as I could fit on the rest of the page. They finally got it, lol. Reason #742 why I'm glad I moved away from Los Angeles. :rofl:
 
One trick I learned... My business name is .... Charles Plesums ... and I have a birth certificate to prove it. Therefore any question about DBA - doing business under an assumed name - goes away.

In Texas I applied for a sales tax permit for the business Charles Plesums (clever name, huh), and since I would be sending them money, got it almost instantly at no charge. If I go to a trade show or craft fair, they will gladly send me an additional certificate that I can post in my booth with a ...-01 or ...-02 number for that additional jurisdiction.

There are questions about having a business license in Texas, but without a DBA those questions never seem to come up. What kind of business is it? I am an artist who makes furniture and accessories out of wood. But my sales tax license is good, as is, if I start a Lemonade Stand. (Of course, that may trigger a health department inspection of my kitchen).
 
Carol Reed said:
Respectively disagree, Frank. There is no advantage to being anonymous. Work through the venue (the place where the show is being held). They do this all the time. They are also the ones responsible for compliance. Problems they don't need, especially at set up time. BTDT.
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You are in California. Authorities there are a different breed than our Ozark folks. Thousands of craft shows are held in Arkansas, and surrounding states, each year. None I have ever seen enforce sales tax laws. Technically, the sellers should have licenses and collect tax but those that do are rare.
 
Frank, I have done shows all over the country, though never in Arkansas. I can tell you with certainty that all of them collected sales tax for the state in one way or another. And I am sorry to see that you are among the many people that think bashing California is an OK thing to do. Each state has its own idiosyncrasies, including yours. Kindly keep your negative implications to yourself.

Yes, I took my cranky pills this morning.
 
Yep, we were thinking about attending the Convergence event put on by the Handweavers Guiild of America (HGA). Apparently this event moves to a different venue each year, so this would be a rare chance to get good exposure without travelling very far.

However, my wife and I decided that we don't have enough time to pull together both a business and a manufacturing setup in time for this to work out. There's still a chance that I/we will attend though, to man a Marketplace booth for a friend of mine. If he gives the green light, I'll be there! If not, maybe I can use those vacation days to go to Burning Wood II. :biker:
 
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