New Here, Transitioning From Hobbyist to Pro

Hi everyone. I'm Gordon, living in the beautiful SF Bay Area. I've been buying and selling as a hobby for nearly 40 years, learning from my father who was a professional antiques dealer. I lost my day job, and I've decided to give it a shot.

I'm currently accepting any advice as it comes to getting the books in proper order for tax purposes. There's no real "start date" and inventory comes and goes in a variety of ways. How do you get it right when you're starting in the middle? If you're a pro, what did you do?

 

Welcome to Antiquers!

I'm probably not the best person to answer accounting questions, so will leave it to other members.

 

Welcome to Antiquers, Gordon!

 

Quickbooks?
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https://www.score.org/

 

Be sure to set up a separate checking account for the business, separate from your personal accounts. Get a separate credit card that's only used for business expenses.

That way even if you didn't set up any special bookkeeping, your bank and credit card statements can be used to figure your revenue and expenses for the biz, the two basic categories you need to figure taxes. Those statements are also the basic backup documents you need for IRS matters.

The IRS hates to see "co-mingled" biz and personal accounts.

Use checks or plastic to purchase everything so you have a record of the basis for all expenditures except a small percentage you may need to do with cash such as minor purchases at flea markets etc.

Read up on cash vs. inventory accounting methods as you will have to pick one to use for biz taxes, and indicate on your tax forms which one you are using. Read up on estimated taxes to see when you have to send in so you won't get hit with a penalty. They are due 4x per year if required.

Consider having a lawyer set up an LLC for you, protecting your personal assets. Get local business licenses if required, usually there are some fees and taxes that go along with those. Get sales tax number, will save a lot of $ if u buy merch at auction.

 

Wow, Spring. I don't sell, but were I to do so, I'd print out that answer and pin it over my desk!

 

Welcome!

 

Welcome!

 

welcome