Question to the professional modders...

So a storm's been brewing in the space between my ears for the past couple of days. Suffice it to say that its related to making a flashlight.

I just got off the phone with my machinist friend and he schooled me on making products with other people's hard work (read: patents and making and selling mods based on already existing designs), taxes, setting up a business and all that.

Now, my question is - how do you deal with the source of money that is your custom flashlights? Not pointing out anyone, but a few people really seem to rake in the moolah and i just want to know if there is a proper proceudre i should be going through. (Declaring it as "alternate income" would probably get me audited before you could say "Luxeon!" /ubbthreads/images/graemlins/icon15.gif )

And about selling lights on CPF - how willing have you found people to pre-order and then send the money when the time comes? Naturally, it would be more efficient to have a machine shop make the parts and sell them than make them all by hand (and i haven't even seen a lathe till now!)

Just want to know if i should know anything before i lose my shirt in the fickle flashaholic world. /ubbthreads/images/graemlins/broke.gif

Awaiting critique and help,
Mark

generally speaking, capitolizing on other peoples hard work is a dirty thing to do.

cpf isn't here to be a monemaking venture for those who feel so inclined. if people wish to make/modify flashlights and sell them, it is allowed, but doing so for the sole purpose of profit would be against the spirit of cpf.

i've sold a lot of things via cpf and chat, and i've done limited runs of other things, but it was done more as a favor to my friends and fellow flashalics than to earn a profit. i did make a little money, which has helped pay for insurance, gas, and the occasional frozen pizza, but it's not my intention to do only that.

if you've got a mod idea, and want to sell a couple, that's fine, but if you plan on starting a "business" of sorts, that may not only be patent infringment on the manufacturers, but could potentially be against cpf policy also...
hopefully you don't plan on copying products and cashing in on others hard work and taking away from their market (sf, elektrolumens, arc, cmg, etc)

No no, that's not what i meant. I'm talking more about taxes and stuff. How do you deal with money coming in from flashlights?

I'm not even thinking about capitalizing on others' hard work and intellectual property, but i wouldn't be against making a run of a custom light and selling a few here, with the admins' grace of course.

Check the IRS web site for "Hobby Business". Also do a Google search for the same. I hope this helps.

Dan

You are more than welcome to make a run of a light and sell it here on the forum. I dont see that being against policy.
Maybe even make a donation to the forum /ubbthreads/images/graemlins/wink.gif

As far as patents and taxes. Well, do you turn in tax info for mowing people lawns? NO? Well, your SUPPOSED to. hehe

Its not a big deal if you are just making and selling a couple mods here and there. If you get into the habit of making large runs, that might be different.

i'd tell you how i manage the tax aspects, but i shouldn't online... (that's my answer /ubbthreads/images/graemlins/wink.gif )