A while ago I began making my own jewelry and wearing it out and about. After people started asking me where they could get their own I have started selling a few pieces here and there to family and friends. How do I know when and how much money needs to be exchanged before I start charging taxes? And how do I go about doing that?
The scenario you described above is how many many jewelry makers get their start. Check in with your municipal, county and state tax offices about how to operate in compliance with their regulations. An accountant can also help you understand what your obligations are in terms of collecting and paying any applicable sales taxes. If you're doing well now, plan for future success!
- Dr. David Weiman