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Painted Rose
01-18-2002, 08:39 AM
I need to know if you need a retail license if you only sell a few
paintings a year and sell under a 1,000.00 a year.
Thank you
painted Rose

CarlyHardy
01-19-2002, 12:18 AM
You don't need a retail license to sell your artwork. In fact you are considered selling "wholesale" if you sell direct to the buyer. However, if there are supplies that you can purchase wholesale that will be used in the making of your art, the wholesale company may require you to have a retail business license. If you're not buying any supplies wholesale, you would only need a retail license if you have your own shop or gallery and sell to the public. You are responsible for state or local taxes for sales within your state.

You should keep a good accounting of your yearly expenses and income from your art. You will need this to file your tax form for your business.
carly

TPS
01-19-2002, 01:58 PM
Having a retail license depends on your locality, city, county, state laws. So you need to check with those entities. As soon as you begin selling your work you need a sales tax certificate, that sets you up to collect sales tax and remit it to the state.

Don't know where Carly got the info that selling to your buyers is considered wholesale. This is not true anywhere I'm aware of including Georgia. Wholesale is dependent on how your product is used. If it is used in manufacture of another product, then it can be wholesaled. However, if it is a finished product that is sold to the end user, then it is not wholesale; and you must collect the sales tax. The only instance where you can avoid collecting the sales tax is if you're selling to someone out of state via telephone, internet, mail order. And even then, the buyer is still liable for paying the sales tax in their home state; and some states have agreements with other states that require you to collect the tax for them.

If you sell on consignment, such as through a gallery, then the selling agent collects and remits the sales tax.

CarlyHardy
01-19-2002, 04:12 PM
Thanks for that correction on my statement...after reading it, I realized that I didn't make anything clear! I shouldn't answer legal requests after midnight!
carly