# Home Business to Supplement Retirement



## Piney Woods (Jul 5, 2006)

I've been thinking about starting a home business now at age 55 to supplement retirement income. I have all the basics I need for retirement, I think this business would help pay travel expenses so I could work at Renaissance Fairs, craft fairs, etc. and travel inbetween. Nothing spectacular - would just like to see all of the US. Two things I want to do in retirement is travel and go to Ren Fairs, Celtic Faires, music festivals, etc. I'm thinking this business could facilitate both. Thoughts?


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## Alice In TX/MO (May 10, 2002)

You didn't say what the business was.


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## Ken Scharabok (May 11, 2002)

I suggest actually going to a number of them and cruising the vendor area to see what they are selling (and what seems to sell). However, then recognize if you try to copy them you become direct competition. Look instead for something which no one else is selling there, such as perhaps the cushioned bamboo poles used in the sword competition.

Tax advantage is if you file a Federal Forum C (I believe - small business) you can deduct your expenses from sales. That would include travel expenses. You may be able to show a loss (off-setting retirement income) for several years without showing up on the IRS radar.

For example, I attend one large blacksmithing conference a year as a vendor. Typically don't sell much, but I can write off fuel, registration fee and lodging. In fact, I buy WAY more than I sell. Almost all of it goes on eBay after my return. I am a stricker for having receipts. If the State of TN were to audit me on collecting and turning over TN state sales taxes on sales delivered within TN, I'll hand them a pile about a foot high of the eBay sale notices.

When I lived in Ohio I knew a couple who had purchased a used school bus. Front was converted into a primitive living area. Back into a workshop. As one drove, the other could be making their line of hand-crafted jewelry in the workshop. They would then campout at the sales site.


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## Piney Woods (Jul 5, 2006)

I primarily make handcrafted soap but want to round out my booth with very select jewelry, clothes, a very few home decor items and natural skin care products. My business theme is based on gypsies and I've thought of building a full size wagon I can roll off a flatbed trailer into my booth, or perhaps a miniature gypsy vardo. 

Good words of advice, Ken.


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## Alice In TX/MO (May 10, 2002)

If you make a vardo, make one for me, too, please!


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## hanlonfive (Jun 20, 2003)

I second that Alice! Me too, me too!!!!!!


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## clovis (May 13, 2002)

Ken is right...a Schedule C is for use of a small business.

One thing to remember is that if you travel extensively, you will have a ton of miles to write off. It might be difficult to show a profit, of course, with all those miles.

Get a Schedule C and study it and how to fill it out. It is a worthwhile investment of your time because it will teach you things you did not know.


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## Ken Scharabok (May 11, 2002)

Also check out state sales tax structures. You may have to collect and then remit back to the particularly state sales tax on any purchases for a resident within that state.

In TN flea market vendors who buy for resale or produce for sale have to charge state sales taxes. Most will say, "Its included in the item price", then not remit to the state. I've heard at a regular flea market in Huntington the state revenue folks showed up. Before they got part way down the first row folks were packing up and leaving.

Technically if you sell produce and such you are required to add on the 6% state sales tax on groceries. Livestock isn't taxed. Nor are yard sale items (which obviously weren't purchased for resale).


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## therunbunch (Oct 5, 2009)

I am a huge fan of hand crafted soap. I was looking for TWO years for some I liked and that actually made me feel CLEAN and not grimey... and I found some at a motorcycle event that my organization hosted back in Oct. I think you'd do well with soaps... but your soaps have got to be unique... special.. because lots of people are doing the soap thing these days. I love the wagon idea too!

One suggestion though.... I would recommend finding no more than 3 things you really love working with (soap, jewelry etc...) and sticking with just those three things. Make those things stick out. Getting involved with tooo many things will make you just another face in the crowd. People tend to get too many things going in one shop because they want to see if one thing will do better than another. It is usually a huge crafter's downfall. Since you are hoping to supplement your retirement, I'd say stick with something you love... and keep it splashy and addictive for your customers!


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## Harry Chickpea (Dec 19, 2008)

Ummm, subchapter C is primarily for larger small businesses (multiple owners, etc,). Subchapter S is more tailored to an individual and allows flowthrough and all the other goodies, and is easier to deal with.

Doing a show circuit is hard work, don't kid yourself. If you are extroverted and have the energy to shlep, put-up, sell, take-down, live out of a motel or camper, and have enough funds to pay for the booth space, it might work. When you get on the road, you'll find that even a steamer trunk full of show materials is a pain. You also have to worry about theft (think entire trailer, not just an item or two), weather, and all the other goodies.

With the economy like it is, plan on a LOT of people looking and pawing over stuff, and fewer buyers than in good times.


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## Jyllie63 (Dec 30, 2004)

We just started selling this www.livethesource.com . We (dh and I) both think the product is awesome so we believed in it enough to begin selling it. This is an MLM company and since it's still in the groundbreaking stage, there is definitely money to be made because people who join now will be at the top of the ladder. Just PM me if you want more info


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## Patriot (Jan 2, 2010)

Harry Chickpea said:


> Ummm, subchapter C is primarily for larger small businesses (multiple owners, etc,). Subchapter S is more tailored to an individual and allows flowthrough and all the other goodies, and is easier to deal with.


They were referring to the _Schedule_ C, which is the federal IRS tax form that needs to be filled out for anyone who has a home-based business that isn't incorporated. I have used it several years now. And you do not have to be a corporation.

If you decide to incorporate, then yes, the subchapter applies. 

MLM is definitely an option. Just do your homework.


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