Craft has a tradition and an important role in the economic development in the Republic of Croatia and therefore it is not surprising that crafts are thoroughly and comprehensively regulated by legislation. In addition to the Companies Act, the Crafts Act is the basic act by which the status and other issues for the work of economic operators are governed. Crafts Act states that the craft is used for economic activities and it determines the craft as an independent and permanent performance of economic activities by natural persons with the aim of achieving income or profit through production, trade or services. Craft is an equal entity in the market, but like any other organizational form of activity in the economy it has its advantages and disadvantages. The benefits of trade are easier bookkeeping and cheaper and easier set up. The disadvantage is unlimited liability to third parties with all its assets, as well as reduced credibility, as it is more difficult for craftsmen to obtain aid and loans. Craftsmen’s books are kept on the principle of Treasury bills. Bills are recorded at the time of payment of its obligations or at the time of payment by customers and third parties. Each craftsman can choose the system of taxation; i. e. will he pay taxes based on, income, profit or lump-sum.