Checks can be picked up at the front desk on the 2nd of the month. Should the payout happen during a weekend, checks will be available the following Monday. Payout will be issued on the 1st of the month. Checks can be picked up at the front desk on the 2nd of the month. Should the payout happen during a weekend, checks will be available the following Monday. Checks that are not picked up by the 5th will be mailed.

Craft Collective will collect and pay all sales tax on your behalf. While in many cases, creating a separate entity for your business is not necessary, for those who do have an entity and are required to file monthly sales tax reporting, please report $0 in sales for the portion of goods sold at Craft Collective .

When it comes to taxes, it seems everyone does things a little differently. Some file things themselves, some use a software system, and some hire an accountant. Even each accountant seems to have his or her own way of doing things. When it comes to providing the IRS with the correct tax information you can do things in a few ways.

1) Keep track of your sales, rent, and fees yourself using the settlement report that comes with your check at the end of the month. Add up all the reports for the year and report your sales and expenses to the IRS.

2) If you would prefer, we can provide a document to you with your sales, rent, and fees for the tax year upon request. We call it the financial summary report and it includes everything you should need to complete your taxes.

Sometimes a person will ask if we will send a 1099-MISC for each vendor in the store. After much study and many conversations with different accountants and tax professionals, we want to provide a detailed explanation as to why we do not provide 1099’s to vendors.

As a general rule, “you must issue a Form 1099-MISC to each person to whom you have paid at least $600 in rents, services (including parts and materials), prizes and awards, or other income payments.” In this case, Craft Collective does not pay rent to vendors, you pay rent to us. Craft Collective provides a service to our vendors (You don’t work for us, we work for you!). Craft Collective does not give out prizes or rewards, but we do payout for merchandise sold every month. This often leads to confusion as it seems to fit into the “Other income” category. A careful reading of the 1099-MISC specific instructions from the IRS website found at https://www.irs.gov/ instructions/i1099msc, reveals a list of exceptions:

“Exceptions.

Some payments do not have to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include all of the following...

Payments for merchandise, telegrams, telephone, freight, storage, and similar items. “

Craft Collective’s payments to vendors at settlement constitute payments for merchandise, therefore these payments do not have to be reported on a 1099. This does not mean vendors are not responsible for reporting their sales or income to the IRS. How you report your sales revenue is conversation each vendor should have with their tax professional. We provide the monthly Settlement reports and the Financial Summary report so that you can report all the relevant information on your taxes.

As with much of the tax code, this topic can be a confusing one, which is why many markets do things in many ways. Furthermore, all the material prepared above is for general information purposes only and does not constitute legal or tax advice.

We hope this will bring some clarity to any confusion on the topic. If you would like a copy of the Financial Summary report don’t hesitate to ask our staff.

Securing a space requires payment for the first months rent.  Rent is paid in advance for the upcoming month.  At the end of the first month, you’ll receive a check for your sales minus the next months rent and fees.  

Should your start date occur in the middle of the month, our team will prorate the amount and give you a credit for any days before the start date.  This credit will apply to the next month's rent.

For example, if your agreement begins on the April 11th and your monthly rent is $300, our team will calculate your daily rate:

        $300 rent divided by 30 days in April = $10 per day

Then you’ll be charged for 20 days in April:

        $10 per day X 20 days in April = $200

You’ll receive a credit for the remaining days to be put towards May’s rent:

        $10 per day X 10 days = $100 credit towards May’s rent

What about upcoming and new stores?

The same process is used when a new store opens to the public.  The first month's rent and deposit will be collected to secure and hold your space until opening.  

If we open to the public on April 11th,  we’ll prorate your rent for 20 days in April and give you a credit for the remaining amount to go towards rent due for the month of May.  

If the total sales do not cover the cost of the next months rent and fees, a balance is owed on the account and will be invoiced.  Should a balance of more than $250 be carried for more than 30 days, your actions will be considered abandonment of your space, inventory, furniture, and fixtures and Craft Collective will immediately become the default owner of your space and all its contents.  In the event that a balance persists, Craft Collective will try to create a payment plan that is feasible for both parties.  As a last resort, Craft Collective will pass on the balance to a third party collector to try to recover the losses.