# outsourcing printing to a printer wno business license



## Islandfever (Jan 10, 2012)

Am I able to legally outsource my screen printing to a small time, garage based screen printer who has no business license? In other words, once I get legit (licenses, permits, etc.), do I have to report to the IRS/Dept. of Revenue who does my screen printing?

The answer to this seems like a 'no-brainer' to me (answer being NO) but is there away around this, like having him file as an employee of my (soon to be) business? Just too hard to beat his pricing 

My intentions are to do everything 'by the book' and not break any rules of business or ethics but I am very new to business practices at this point. Thanks.


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## Monte (Nov 5, 2012)

What kind of numbers are you talking about under 8k annually it's better if you intend to establish a business credit. How's are you accepting payment? But ultimately you're it's really a non issue for now.


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## Islandfever (Jan 10, 2012)

Monte said:


> What kind of numbers are you talking about under 8k annually it's better if you intend to establish a business credit. How's are you accepting payment? But ultimately you're it's really a non issue for now.


Very low numbers now, just a few local side jobs here and there for now. I'll be launching a line of resort tees to sales reps soon though and should have much bigger numbers. Accepting payment by cash or check now. Can also accept CC now but haven't yet. Under 5k for the year so far so I don't even have to report it -just wondering about when I do have to finally report earnings, etc.


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## Islandfever (Jan 10, 2012)

161 views but no one has any advice? C'mon guys, I know there is intelligent (and experienced) life here


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## GraphixGuys (Jan 16, 2012)

Not sure what question you are asking. So here is a breakdown of some of your questions.

Am I able to legally outsource my screen printing to a small time, garage based screen printer who has no business license? 
For the purpose of taxes the answer is Yes. There can be some other legal issues on your local and state level regarding how he opperates his business.

In other words, once I get legit (licenses, permits, etc.), do I have to report to the IRS/Dept. of Revenue who does my screen printing?
Yes. If you are wanting to do this "by the book" then, all earned income must be reported legally.

So if you want to be completly legal you must report your extra income. If you do that, then you will want to show your expenses so you won't pay as much taxes on your earned income. In order to show expenses you will need to give your shirt printer a 1099 on how much you paid him. Thus, exposing his earned income for him to report as well.


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## Islandfever (Jan 10, 2012)

GraphixGuys said:


> So if you want to be completly legal you must report your extra income. If you do that, then you will want to show your expenses so you won't pay as much taxes on your earned income. In order to show expenses you will need to give your shirt printer a 1099 on how much you paid him. Thus, exposing his earned income for him to report as well.


So he must have a business license for me to 1099 him?


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## GraphixGuys (Jan 16, 2012)

Islandfever said:


> So he must have a business license for me to 1099 him?


 No. When he files his taxes he would just have to show the 1099 as earned income from a hobby.


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## Islandfever (Jan 10, 2012)

Great! Thanks -that's what I was hoping to hear. Didn't want to have to give up this guy when I get license/permit. etc.


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