It costs money to woodwork. Buying new tools, bits, blades, sandpaper, wood, hardware… well, it all adds up.
This week’s quick poll deals with how you handle the finances of woodworking. Do you use the general family funds? Have you set up a separate account for woodworking? Do you keep a mason jar full of cash buried in the back yard?
[poll id=”119″]
Hey Tom,
That’s an article I’d like you to write, regarding having a side business in woodworking. I’m planning on meeting with an accountant and financial planner after tax season is complete to discuss my options and the best way to proceed. I know I’ll need to also get with my insurance folks for what needs to happen on that side, too.
Vic
OK, Vic, I’ll put that idea into the hopper…
Hey Tom:
Before I started my woodworking business, I would only spend paper money and put the change aside. It is amazing how much you can save using this method. It is also relatively painless. In addition, I was a football referee and would put all my football checks in this account. Over the past twenty + years I have acquired a large amount of tools with little or no strain on our household budget. Now my wife and her shoes.. that’s another story!
Mike
A simple side business is easy to set up and covers the cost of my woodworking supplies and equipment. I obtained a resale number (no charge in California … at least not yet) and participate in a few local street fairs and “boutiques” each year. The IRS has no problem with this as long as you show a small profit three years out of five. It’s fun and you meet lots of friendly people and all the local woodworkers always stop by.