How to Start a Jewelry Making Business at Home

If you're crafty and you want to cash in on your talents, starting a home-based jewelry-making business may be just the thing for you. Plenty of low-cost materials are available for you to experiment with, and jewelry is always popular, even during economic downturns. Find out what you need to start your own jewelry-making business.

Things You'll Need

• Business cards Price stickers and/or tags Website

Instructions

Naming Your Business

1. Choose a name. Don't limit yourself to only one type of business, such as Brenda's Bangles. You may later decide to branch out into necklaces and your business name will no longer fit. Be unusual and creative. Think about the adjectives that best describe the jewelry you make. Use an online translation program to see what those words look like in other languages.

2. Search the Internet to see if any of the names you like are in use. Check the U.S. Patent and Trademark Office website to see if any of them has been trademarked. Search your state's corporation or secretary of state website to see if anyone has registered any of your possible names as a corporation or trade name.

3. Test market your names among family and friends. Don't tell them which name you favor. Ask them which of the names they prefer and why.

4. Register your final decision as a website domain name.

Legalities

1. Get your name on file with the Secretary of State in your state, and if you decide to incorporate, get that paperwork filed as quickly as possible.

2. If you want to trademark your business name and logo, talk to an attorney about the process and get the paperwork going.

3. Check if you will need a business license or permit from your county or city clerk's office. If you need to get a license or permit, the clerk can point you in the right direction to fill out the appropriate paperwork.

4. Obtain a resale tax number from your state's department of revenue. You will have to collect sales tax on the items you sell and report that tax and pay it to the department of revenue every quarter. If you sell items in other states in person, you will also need a sales tax permit for each of those states, and you will be responsible for paying any taxes collected to that state's department of revenue as well. The items you sell online to people from other states will not need to have sales tax collected on them.

5. Familiarize yourself with the IRS's self-employment requirements. Hiring an accountant is also an excellent idea so you won't have to worry about all of the tax laws and financial pitfalls out there.

6. Open a separate bank account for your business, since the IRS requires a clear separation between business and personal income and expenses. This also makes record-keeping easier.

7. Order business cards and sales slips with your company name on them.

Pricing

1. Add in time and labor as well as cost of materials. Many people equate price with quality, so don't be afraid of charging too much.

2. Build a discount factor into your prices for jewelry shows so you can offer discounted prices, if necessary.

3. Consider offering a discount for multiple purchases on website sales.

Tips & Warnings

• Always consult with an attorney if you have any law-related questions.

References

• Home Jewelry Business Success Tips