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Learn how to start a handmade business legally with this step-by-step guide on how to register your craft business.

Starting a craft business can be a fun and rewarding endeavor, but it's important to ensure that your business is properly registered and compliant with all relevant regulations. Here's a step-by-step guide on how to register your craft business in 2023.

Step 1: Choose a Business Name and Check Availability

The first step in registering your craft business is choosing a name that accurately represents your brand.

Once you have a name in mind, you should check its availability to make sure it hasn't already been taken. You can do this by searching the internet, social media, and state and federal databases. 

Once you've confirmed that the name is available, you can proceed with registering your business. 

The USPTO allows you to search and register for trademarks.

Step 2: Choose a Business Entity

The next step is to choose a business entity, which will determine how your business is taxed and regulated.

There are several options to choose from, including sole proprietorship, partnership, LLC, and corporation.

Each entity has its own benefits and drawbacks, so it's important to do your research and choose the one that best suits your business goals.

Read more about business structures HERE.

Step 3: Obtain a Federal Tax ID Number

Once you've chosen your business entity, you'll need to obtain a federal tax ID number, also known as an Employer Identification Number (EIN).

This number is used to identify your business for tax purposes and is required if you plan to hire employees or operate as a partnership or corporation. You can apply for an EIN online through the IRS website and read more information about federal & state tax numbers here.

Step 4: Register Your Business with the State

In most cases, you'll also need to register your business with the state in which you operate.

This involves filing articles of incorporation or organization and paying a registration fee. The exact requirements and fees vary by state, so it's important to research the requirements in your state. 

Visit the U.S. Small Business Administration for information pertaining to your state's guidelines.

Step 5: Open a Business Bank Account

Once your business is registered, you should open a separate bank account for your business transactions.

This will help you keep your personal and business finances separate, which is important for tax purposes and liability protection.

You'll need to provide your EIN and other registration documents to open the account.

Additional Tips for Registering Your Craft Business

Here are a few additional tips to keep in mind as you register your craft business:

• Consult with an attorney or accountant to ensure that you're complying with all relevant regulations and tax requirements.
• Consider obtaining any necessary permits or licenses for your business, such as a sales tax permit or zoning permit.
• Keep accurate records of your business transactions and expenses to make tax season easier and to ensure that you're complying with all tax laws.
• Consider registering your business as a trademark to protect your brand and intellectual property.

Registering your craft business may seem overwhelming, but following these steps can help ensure that your business is properly registered and compliant with all relevant regulations.

With a little research and preparation, you can set your business up for success in 2023 and beyond.

Please note that these are only guidelines and we do not offer legal advice or make claims as to what steps are necessary because every location is different. Check with your locality for the most accurate information.

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