Should I form an LLC or business entity for selling at fairs?
An LLC can help with liability protection and organization, but it comes with setup and maintenance costs.
The Narrative
The Empathy
You want to be professional, but you are not sure if forming an LLC is necessary for a small craft business. The fees and paperwork can feel daunting.
The Education
An LLC can separate personal and business liability, which is useful if you sell products that carry risk. Tax treatment is flexible, but you still need to keep records and file returns. Some vendors start as sole proprietors and form an LLC later when revenue grows or liability concerns increase. The decision depends on your risk tolerance, local requirements, and long-term plans.
The Solution
Evaluate your risk exposure, projected revenue, and state fees. If you want liability protection or plan to scale, forming an LLC may make sense. If not, keep clean records and revisit the decision after a season or two. Consulting a tax professional or small business advisor can help you decide with confidence.
Stop Guessing. Start Growing.
Stop waiting until the end of the month to see if you made money. Get instant clarity on every sale, even without Wi-Fi.
