There are lots of people all across the country that enjoy patch collecting merely for the joy of it. The thrill of being able to finally find that one military patch to complete a series, or learning about the history of some specific patches, are the types of things that make it a wonderful hobby. But what if you want to turn that hobby into a part-time job for some extra cash? Is that possible?
Patch reselling is a good way to make some extra pocket change in your spare time. You can sell patches online, at local festivals and community events, and among your friends and fellow collectors. But if you're going to do so there are a couple of important tips you need to keep in mind. Below we've listed 3 tips in this first of a two-part blog post.
- Know the Tax Laws in Your State - If you going to sell patches within your state you'll most likely be required by law to collect and submit sales tax. Using New York as an example, they have an 8% sales tax. Any individual selling patches in New York State must collect an additional 8% and remit that to the state tax department four times per year.
- Taxes and Online Sales - In addition to normal sales taxes, sometimes you'll have to collect sales taxes from residents of other states as well. If you're selling through sites like Amazon and eBay, they allow you to automatically add sales tax to the price of your merchandise.
- Electronic Payments - If you're going to sell online, you should sign up with a company that will process electronic payments. Google Checkout and PayPal are two examples of these types of companies.
