Retirement

[Joe Luzich]

I am looking at retirement in a short time and have a few questions. Rather than give away my turnings, I thought I would do some craft shows to supplement my tool buying and have a few bucks left over. What do I need like insurance or anything else to get started. I hear so many conflicting things. Just need some info or where to find it. Any help would be greatly appreciated.

[Toney Robertson]

Joe,

In this litigious society we live in, insurance is never a bad idea IMO but I have a few exhibitions and did not obtain insurance. I would think the risk is low but it is not zero.


I would think your insurance person could hook you up with an umbrella policy that should protect you but ask them if that is all you need.

Post what you find out or maybe there is an insurance guru on here that will chime in.

Toney

[Dave Wagner]

Depending on the area location, you may need a State tax number and a business license too.

[Dick Sowa]

I agree with Toney...check with your homeowners agent. Most homeowners policies have clauses permitting some hobby business activity.

Many years ago, I made wooden toys and sold them at craft fairs. When I told my agent, they about had a cow, and told me to NOT do it. Apparently toys are too much of a risk.

[Bernie Weishapl]

Joe I would check your state reg's on a hobby business or a full fledged business. I have a business license and insurance here in Kansas. Mainly the insurance is for my shop because I do have people stop by to pick up turnings, etc. So have to have it in case some one falls or gets hurt and on the equipment, shop, etc. When I go to a craft show I don't have insurance on that per se but if I sell I am required to charge sales tax so therefore a sales tax license. I did a lot of research here in the state, with my insurance agent and my lawyer.

[Gary Max]

Start as a Hobby----if you like it and make a couple of dollars----then start up a business. This will give you time to decide if you want to mess with the paper work.
Some shows will require you to do the state sales tax thing.

[Brian George]

I'm in Eau Claire, WI and do craft shows. In Wisconsin and Minnesota every show I have attended has required a state business id. You can go on line at WI.gov and get the tax info.
If you are a member of AAW, there is an insurance pool program available. I just got a quote of $500.00 for show liability, inventory coverage, and shop tools, etc. This is my 2nd year going into craft shows and I haven't gotten it yet.
A couple years ago a number of booths blew into the harbor at Bayfield during a storm and trashed other booths and inventory so there is a liability. Some shows require an insurance affidavit. Milwaukee has an AAW chapter.

[Bill Bolen]

Another good way to gauge the acceptance of your efforts is to find a "consigment shop" in your area. Just walk in with a few pieces and see if the owner is interested. Not much effort on your part and 0 expense for all concerned. Look for a 60/40 split on the price. It has worked well for me and the extra check once a month keeps me making shavings...Bill..

[Joe Luzich]

Thanks to everyone for the suggestions and help

[Kyle Iwamoto]

I'm doing the same thing. I HOPE to retire in a few years. This is the plan. Buy EVERYTHING that you think you need while you still have a paycheck. Trying to buy a drum sander for instance, may require you to sell 20 bowls...... May be easier to buy it now. Will you need a drum sander? Depends on where your woodworking takes you.....

[Paul Engle]

Wal Mart is the only one I know of requiring PLI , about 1 million $ worth to start depending on the product. Home owners insurance will not cover commerical products you sell unless they offer a rider for such . PLI can get spendy at best if you sell products with finishes that contact food, even though you cannot control how something is used , contact a lawyer if you are uncertain or check out the PL laws of you state also. I my self have never had it, as I use only finishing chemicals generially accepted as food safe by the FDA, if a food contact item. And in the case of a complaint I would refer them to the manufacturer directly.

[Daniel Heine]

Hello,

I would investigate a limited liabilty business. That way you can avoid losing your personal belongings if a lawsuit is ever brought against you.

Good Luck,
Dan