In the world of permanent jewelry, knowledge is key. In this episode of the Permanent Jewelry Podcast, Terri Berry, a seasoned permanent jewelry artist based in Florida, generously shares her extensive experience and valuable insights. Join us as we dive into crucial topics that can help you navigate the intricacies of the permanent jewelry business, with a special focus on taxes and machine safety.
Understanding Taxes and Sales Tax
Terri provides a clear and essential distinction between selling a physical product, such as jewelry, and the service that goes into crafting it – welding. This differentiation is the foundation for understanding tax obligations.
She stresses the importance of understanding your state's sales tax regulations. If your state imposes sales tax, it's your responsibility to collect it from your customers.
Terri strongly recommends reaching out to your state's Department of Revenue to determine your sales tax obligations. Their guidance can help you ensure compliance.
Sales Tax Collection Methods
When it comes to collecting sales tax from your customers, Terri offers two practical options. You can either add the sales tax amount to the customer's total price, or you can collect it separately. Terri personally prefers adding it separately, as it offers transparency and clarity.
Unlocking the Power of Resale Certificates
Terri elaborates on the significance of obtaining a resale certificate for your business. This certificate allows you to make untaxed purchases when acquiring materials for your jewelry.
These resale certificates are issued by the Department of Revenue in your state. By presenting this certificate to your suppliers, you can avoid paying sales tax on business-related purchases.
Tax Deductions vs. Tax Credits
In the complex world of taxation, Terri clarifies the difference between tax deductions and tax credits. Deductions are expenses you can write off to reduce your taxable income, while tax credits are direct reductions in your tax liability.
Terri highlights that some states offer tax credits for collecting and remitting sales tax on behalf of the state, which can be a financial benefit for your business.
Keeping Immaculate Records
Terri emphasizes the importance of meticulous record-keeping. It's essential to maintain receipts for all your business-related expenses and purchases throughout the year. This organized documentation is invaluable when calculating your taxes at year-end.
Ensuring Proper Vehicle Coverage
If your business involves transporting jewelry-making materials or equipment in your personal vehicle, Terri offers a practical tip. She advises adding business coverage to your personal vehicle insurance. This ensures that you are fully covered during business-related activities, providing peace of mind and financial protection.
Embracing Business Growth
Terri's journey in the permanent jewelry business is a testament to the industry's potential. Over the past three and a half months, her business has experienced significant growth, in part due to her participation in the PJ launch program. Her story serves as an inspiring example of what's possible when you're committed to learning and growing within the industry.
Demystifying the Unbranded Machine
Terri delves into her experience with using an unbranded welding machine, addressing concerns and myths surrounding its safety. She emphasizes the importance of safe practices, including maintaining a gap between the jump ring and the ground, and using a protective barrier between the skin and the metal during welding.
Terri goes further to highlight her dedication to promoting safe usage and learning through her Facebook group, "The Original Unbranded Machine Group." It serves as a supportive environment for artists to discuss and educate themselves about unbranded machines.
Championing a Supportive Community
Terri and the host, Jake, engage in a thought-provoking discussion about the prevalence of unfounded fear-mongering within the industry, particularly concerning machine safety.
Terri passionately advocates for a supportive and informed community where artists can freely ask questions without fear of judgment. A united and knowledgeable community fosters growth and collaboration.
In conclusion, Terri Berry's insights cover various aspects of running a successful permanent jewelry business, from tax considerations to machine safety. Her experiences and expertise provide invaluable guidance for both seasoned professionals and newcomers to the field.
The key takeaways from Terri Berry's journey and advice include understanding tax regulations, leveraging resale certificates, mastering record-keeping, and promoting safe machine usage. The industry's potential for growth is limitless, as evidenced by Terri's remarkable business expansion.
In the spirit of collaboration and support, Terri's dedication to educating and nurturing a thriving permanent jewelry community is an inspiration. The journey to mastering permanent jewelry is a rewarding one, and Terri Berry's insights light the way to success.