There used to be laws against selling goods like that that were made at home. Don’t know if they are still out there, but that’s another pitfall.
Getting a federal tax id is fairly easy - you can do it online (watch out for the scamster sites that are mining for your personal info - only do business with IRS.gov.
But you shouldn’t need a separate tax id if you are doing this as a sole proprietorship, should you? Maybe some CPAs or tax lawyers could chime in. But decades ago, when I ran my own business as a sole proprietorship, I just used my SS number as my tax ID.
Apparently it is now legal, but difficult, to sell your own knitting.
http://www.nytimes.com/1984/11/06/us/us-ends-ban-on-home-knitting-for-sale.html
That’s the thing: Selling a few handmade items shouldn’t require a consult with attorneys or accountants. I just want to make a few bucks to stash away for vacation, kids’ shoes, a nice gift for hubby.
It’s almost like Big Gov doesn’t want us to be financially independent!