Business license and home occupation use permit in Raleigh, NC

Do you need a business license in order to sell jewelry? The answer to that depends on where you live. I live in Raleigh, North Carolina, so that is what I'm going to talk about. For other cities, you can Google "(your city) business license" and you should be able to find what you need.

Here is the link to the Raleigh Business License page

Here is a link to the City of Raleigh "Starting a New Business" page

If you are planning to make jewelry that you are going to sell, and you are making it while living in the City of Raleigh, you must obtain a business license from the city - even if you are selling only at craft shows or on the Internet. The only exception is if you sell solely at the flea market, then you don't have to have a business license. (You will, however, still need a tax ID number.)

If you click on this Business License link, you will be able to open a PDF file of the Raleigh Business License application. You can print it, fill it out, and mail it to the address on the form.

Here are some tips I was given by the Raleigh business license office:

1) You are not considered "Peddlers by foot, vehicle, pushcart, or without a retail location" if you are selling on the Internet and/or via craft shows. This only applies to people who sell door-to-door.

2) On the line for "Business Name," you put your FBN or DBA. But if you're not using one, just put your own name.

3) What if you don't have a "Business Location Phone Number"? My business is home-based, but my home phone number is unlisted and I never use it for business. THE PHONE NUMBER YOU ENTER HERE WILL BE PUBLIC RECORD. So, if you want to keep your number private, leave the space blank.

4) There's a section called "Schedule II: Business License Tax Based on Business Activity" but nothing there applies to jewelry makers. Again, the "CJ Merchant/Peddler- No Retail Store" does not apply to jewelry makers, unless you plan to go door-to-door or operate an independent, mobile jewelry cart.

5) "Schedule III. Business License Tax Based on Gross Receipts" is the main section for us. In this section, you are being asked to ESTIMATE your expected gross receipts (total amount of money collected by selling jewelry). For most people, this will safely fall within the first category, "$ 1 - $ 50,000" which means your annual business license tax will be $ 50.00.

Include your check for $ 50.00, made out to the City of Raleigh, when you mail your application. Applications are processed within 3-5 days, and a renewal will automatically be sent each year to the address on file.

HOME OCCUPATION USE PERMIT

Businesses operated from a home within Raleigh must also obtain approval from the Zoning Division of the Inspections Department by applying for a Home Occupation Use Permit (clicking on this link will open a PDF file of the application). This is a one-time fee of $ 72.00.

I called and spoke with a very nice lady named Faye at the zoning department, to make sure I had the most recent, accurate information for this blog post. Faye said there should be no problem getting a home occupation use permit as long as everything you sell is handmade. You can't be buying jewelry wholesale, storing and reselling it from home, I guess. You have to be buying materials and making the jewelry yourself.

Under "Describe business activity that will take place on the premises" she said to put down that you are doing Internet sales only, filling orders through the mail, that all jewelry is handmade by you only, you have no employees, and no customers will be coming to your home. Assuming these things are all true, of course. If you have other circumstances, you'll need to talk to the City of Raleigh Zoning Division at 919-516-2555.



Jen Hilton makes one-of-a-kind jewelry sold through her website JLHJewelry.com. She is the founder of the Triangle Jewelry Makers and is featured in the books "Steampunk Style Jewelry: Victorian, Fantasy, and Mechanical Necklaces, Bracelets, and Earrings" and "1000 Steampunk Creations: Neo-Victorian Fashion, Gear, and Art" available at Amazon and other booksellers.