How to Legally Start a Handmade Business from Home (EASY 5 STEPS!) | Sole Proprietorship vs LLC

I know the legal paperwork involved with starting a handmade business online might be confusing. But you don’t need to register for an expensive LLC if you’re just starting out. In this video, I'll walk you through the 5 legal steps to set up your handmade business as quickly and inexpensively as possible.

So, many of you guys are looking to turn your hobby or craft into an income and have been asking me about the legal requirements of running a handmade business from home or whether you need to open an LLC. The good news is that you won’t need an expensive LLC and it’s actually totally easy and inexpensive to legally start a business by following the steps I’ll be sharing with you today. Quick disclaimer before we get started though: As you guys know, I'm not a lawyer or a financial advisor.

I’m just sharing what I know has worked for me and thousands of other sellers following official documentation online. However, if you’re looking for legal advice, I recommend consulting with your local government or lawyer for the most accurate and personalized information to you. Also, I’ll be showing you how to legally set up your handmade business in the United States. If you don’t live in the US., the process may be kind of similar, but you’re going to have to look into it yourself for your specific country.
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[CreativeHiveCo]

🚨NEW FREE WORKSHOP FOR 2022🚨 Learn how to create a PROFITABLE handmade business online without keeping up with social media 🔽

[lisanewman]

Thank you for the information. I was going crazy thinking about all the money I would have to spend on getting my LLC. I'm not stressing out anymore.

[kilo_charlie]

Finances and any legal stuff is daunting! This helps me process what is important to do first and what I may have to do as my business grows.

[CirceAlmendra]

Wow thanks, this is basic, I just recently moved from Mexico to NY and wanted to sell my jewelry online but I want to do it like this and need all this information, thanks so much!!!

[Pylirr_Raerana]

Thank you so much for information! 🌺 This is exactly what I was thinking about for past month.

[lisatavarez]

Thank you so much 😊 this has been giving me a headache as far as legal and what’s the easiest and quickest way to be legal stating out. Much appreciated!

[ucantrustme]

Great video, however, My LLC cost me under $60. You don’t need an attorney to file a LLC. You just go to the Secretary of State for your state and it takes approximately 15mins. With LLC you are not personally liable if someone tries to sue you, the business is liable.

[liziking]

I would like to say how thankful I am for you and this video. I am thinking of starting a business and was wondering how to even go about it. I think this is one of the most crucial steps in starting a business. By the way, I'm a new subscriber and I am binge-watching your videos. I am just so glad that I found you and your Channel. Again, thank you.

[PaperZenCeceliaLouie]

Thank you for helping us understand the legalese Mei! I'd love to learn more about collecting and remitting taxes, especially when selling digital products internationally. It's my main roadblock against migrating from Etsy to Shopify. If I make a handful of sales internationally, I feel the amount of time needed to deal with the paperwork and admin will outweigh any profits. OK, plus I just detest finances...

[heidewilliams]

I just gotta say, I'm so grateful to find your channel. I've been wanting to start my own business making all kinds of things, and the information from your channel is going to be so helpful in getting my business started.

[toothy.monster]

Yo this helped out so much!! Thank you! I do have a couple more questions though.
1. Do you need the insurance if you're only selling digital art?
2. What are the parameters of the *type* of content I'm allowed to sell? (Like do you need other specific documentation for spicier artwork for example? Or artwork that may have political roots?)
3. What if it's a collab project and not inherently hiring a person? Would you still need an EID?
4. Not a question really, your videos are super helpful and I had to say it again lmao.

[ollytwist]

You ma'am...are a legend! Very helpful information, yet oddly difficult to find! Thank you

[moonutella]

Thank you so This topic actually keeps me awake lol

[amiranda]

I'd love to learn on how you automate or scale up in a creative industry where products are your intellectual property and so tied to the maker. I know you said you use videos to train, but how do you QC? How do you protect your creative property? How do you even teach it if sometimes it's so specialized!? Thanks Mei! Your videos are so helpful and inspiring!! I'm finally getting my act together with your help!

[swolfie]

This was so helpful and clear, and exactly the information I've been trying to find. Thank you!

[SandraGonzalez-iwpu]

You was the most clear and helpful you-tuber I can watch here thanks so much for your help I continuously look for you . Was so helpful and relaxing video . ✌🏻

[faithnguyen]

Could you make a video about bookkeeping or how to track spendings and revenue? Love your videos! Thanks!

[robinmbirrellstudio]

Thank you! Just the information I was looking for! 😁👩‍🎨

[Labyrinthine_Complexities]

You Rock!!! ❤️ ❤️ ❤️ THANK YOU SO MUCH! My dream has become a reality!

[alexg]

We will be starting home made doll business but will be doing LLC, im afraid if something happens they can go after our home.