Does industry selection matter when applying for a federal tax ID (EIN) for my business?

12 Thanks for explaining that! So just to be sure I understand - when I file my taxes with Schedule C, should I put my business under "manufacturing" at that point? Or does it not matter there either? Also, can I deduct my 3D printer as a business asset or just the materials?

8 For Schedule C filing, you'll need to provide a business code which better reflects your actual business activities, and "manufacturing" would indeed be more accurate for 3D printing. This doesn't need to match your EIN application and won't cause any issues. You can absolutely deduct your 3D printer as a business asset. Since it's equipment with a useful life of more than one year, you'd typically depreciate it over time, but you might also qualify for Section 179 deduction which allows you to deduct the full cost in the year of purchase (subject to certain limitations). The filament and other consumable supplies would be direct expenses or cost of goods sold.

7 How does it work with equipment? I bought my 3D printer specifically for this business but already owned one of them before I started selling prints. Would the system help figure out partial business use?

19 I've tried a few tax tools before and they're always too generic. Does this actually understand specialized businesses like 3D printing? And can it handle both the material costs AND the equipment depreciation stuff the previous commenter mentioned?

15 For equipment like 3D printers, the system lets you indicate whether it's 100% business use or partial personal use. If you're using it partially for business, it helps calculate the appropriate percentage deduction based on your usage patterns. The system is actually really good with specialized businesses including maker/creator businesses like 3D printing. It specifically addresses materials like filament as manufacturing supplies and understands the difference between those ongoing supplies versus durable equipment depreciation. It even helped me sort out which client projects could be categorized separately for better record-keeping.

9 Wait, so this service just sits on hold with the IRS for you? How does that even work? Seems kinda sketchy to have a third party involved in tax discussions.

5 Yeah right. Nobody gets through to the IRS these days. I called 14 times last month about my business EIN issue. Either this is some kind of scam or they're charging hundreds of dollars for this "service"...

3 The service just handles the hold time for you - when they get an IRS agent on the line, they call your number and connect you directly to the agent. You do all the talking yourself, they just eliminate the hours of waiting on hold. It's completely legitimate and secure. You're not sharing any sensitive information with them - they're just getting you to the front of the line. Once connected, it's just you talking directly with the IRS agent as if you'd placed the call yourself.

22 So does that mean I need some kind of inventory management system now? I literally just have rolls of filament in different colors and just grab whatever I need for each order. Nothing fancy.

11 You don't necessarily need anything complex. For a small 3D printing operation, spreadsheets can work fine for basic inventory tracking. Simply document when you purchase filament (raw materials), what's being used in current projects (work in progress), and completed items ready for sale (finished goods). The key for tax purposes is being able to accurately calculate your Cost of Goods Sold, which requires knowing beginning inventory, purchases, and ending inventory. This lets you properly deduct the materials actually used during the tax year rather than just what you purchased.

14 I switched to TaxSlayer Premium after having the same frustrations. It lets you customize business categories more and has better expense tracking for manufacturing supplies. Way cheaper than TurboTax too.

Great questions! For mixed business models like yours, you can handle inventory differently for each type. Custom/made-to-order prints can often be treated as direct job costs (materials used immediately upon purchase), while stock items need proper inventory tracking. This actually simplifies your bookkeeping since most of your materials probably go directly into custom orders anyway. As for software integration, I haven't found any tax software that directly connects to OctoPrint or slicers yet, but some people use plugins or scripts to export material usage data to CSV files that can then be imported into accounting software. Might be worth exploring if you're tech-savvy! Most of us still track material costs manually through purchase records and periodic inventory counts.

I haven't noticed any additional scrutiny from switching my Schedule C classification to better match my actual business activities. The IRS seems more concerned with consistent reporting and proper documentation of expenses than the specific industry code you choose. What matters most is that your deductions align with legitimate business expenses regardless of the classification. For woodworking like yours, whether you file as manufacturing or retail, you'll still be able to deduct wood, hardware, tools, and other materials. The key is keeping good records and being able to justify your expenses if ever questioned. I'd suggest going with whichever classification most accurately describes your primary business activity - if you're making more custom furniture than selling pre-made items, manufacturing probably fits better. But honestly, as long as your expenses are legitimate and well-documented, the classification itself shouldn't cause issues.

This is really helpful advice! I'm just starting my 3D printing side business and already feeling overwhelmed by all the record-keeping requirements. You mentioned setting up a simple system for tracking material purchases and usage - do you have any specific recommendations for someone who's not super tech-savvy? Also, I hadn't thought about electricity costs for running the printers! How do you calculate that? Do you use a separate meter or just estimate based on your printer's power consumption? These indirect expenses could definitely add up over time, especially with longer print jobs running overnight.