If you’ve landed on this blog you’re probably finding success from selling your homemade crafts and you’re wondering “Should I register my business?” You likely started selling your handmade jewelry or furniture at some farmers markets, or started your own Etsy shop, and you’re making more profits than you initially thought you would. Maybe you’re still making your creations as a hobby, or you’re just diving into the world of selling your handmade crafts and you’re quickly finding out that a craft business is going to be a very successful opportunity.
We’ve Got The Answers!
If you’ve had some interest from other people about wanting to purchase your homemade crafts, but you’re not sure what exactly qualifies as a craft business, here are some examples:
- Furniture and Decor
- Cosmetics and Home Remedies
It is hard to find accurate information online about whether or not you need to have a business license for these types of craft sales, and whether or not you need to register your business.
We’ve got some answers to the questions you’ve likely asked yourself on your way to find this blog, as well as some first steps to getting ready to register your online creations – because after reading this you’ll be wondering why you didn’t register a while ago!
How Do I Know Whether To Register My Etsy Shop or Craft Business?
If you’re wondering whether or not you need to register your handmade creations business, ask yourself the following questions:
- Am I making a profit?
- Do I want to grow my business or am I doing it as a hobby?
If you answered yes to both of these questions, then you need to register your business and operate it as a legal entity. If you are making a profit from selling your crafts, then you will need to account for this on your taxes. If your goal is to earn more profits and operate your sales as a professional and proper business, then you will need to register. There are many benefits to registering your Etsy shop or other craft businesses including higher profit margins, more opportunities, and protecting yourself from getting into trouble with Canada Revenue Agency (CRA).
The good news here is that technically, the minute you began selling your crafts for a profit you became a sole proprietor, so it’s just a matter of going through the next few steps and making yourself an official business owner!
CorePro8 can help you with this.
What Are The Steps To Register My Business?
- Determine where you will be operating your business from
Have you been making your crafts at home and sending out your orders yourself? Or do you have a space that you work out of?
2. Choose a business name
Maybe you’ve thought about this since the day you started making your pieces, or maybe you’re stumped on what to name your business. Either way, check out Etsy’s top tips for naming your business!
3. Determine whether you will register as a sole proprietorship, partnership, or incorporation
This is where CorePro8 will be your much needed guide! There are benefits to each of these options, but it is difficult to determine which is best for you if you are starting a business for the first time. Our program will walk you through each of these options, and help you decide which one is best for your Etsy shop business or other handmade craft business.
Check out this blog to learn more about partnerships and whether this is the right direction for your business. You can find several other blogs on our website that will give you some great information on business structure!
What About Bookkeeping, Accounting, and Taxes?
After you’ve registered your business there are some other areas such as finances and business accounts that you might be wondering about. CorePro8 has all of these answers for you.
The CorePro8 program gives you a step-by-step guide on how to prepare for registering your business, how to actually register, and what to do after you’ve registered. Once you’ve completed the program, CorePro8 has a ton of great business tips for you. We will provide you with all of the information you need on how to do your bookkeeping, how to find a good accountant, how to file your taxes, how to pay yourself, and even how to hire employees or contractors once your business grows!
It’s wonderful when a hobby or passion can turn into a successful business. As you thrive and grow as a self made entrepreneur make sure you take the appropriate steps to keep your business healthy and follow the guidelines of Canada Revenue.