From Hertford, NC


Dear TaxMama:

I would like to start selling my hand made soaps and bath products. I already have a full time job, and would like to sell my products "part time". I need to know what to expect and what to do about taxes, and have no idea where to begin! Can you give me some advice?

Thank you.
Hi Marjory,

You've got a bit of reading to do.

Basically, when someone comes to me with a question like that, we sit down for about two hours and go through everything you'll need to know to get started. Then we follow up for about an hour or so each month, to make sure you're on track.

However, you can get there for much less money, although it takes more discipline to do it yourself, by reading Jan Zobel's book:

Minding Her Own Business : The Self-Employed Woman's Guide to Taxes and Recordkeeping (Link Here)

(Barely the cost of lunch at McDonald's!)

In the meantime, open a separate business bank account, and if you can afford it, get yourself a copy of QuickBooks from http://intuit.com/ And Gail Perry's book on how to use it.

Or, if your system already comes with Excel, Get Gail's book on how to turn it into a spreadsheet. Excel 2000 Answers!

Regardless of whether you use software or paper ... keep good records and files. Throw nothing out.

Pay for things using checks and credit cards so you always have additional proof of your spending, in case you lose that receipt.

Read some of these resources, then come back to me with the rest of your questions.

Incidentally, there is also some very useful information right on the IRS site. Read Publication 334 - Tax Guide for Small Business.

Good luck and Best wishes,
Eva Rosenberg