Crafts
Dear Community,
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any etsy store girls here?
Hi ladies! I am a Bumpie by nature but I was told to ask you girls some questions. I am a huge crafter. I knit and do wood block prints mostly. My husband is an illustrator and we will do work together sometimes too. Anyways he has inspired me to open an Etsy shop but I cannot figure out the tax side. I know I need to charge sales tax but does Etsy take it out automatically? Do I have to mail a check? If I am only selling a couple dozen things do I need to file as a business when I do my taxes? Basically I have no clue. I read all their start up info but half the links they post don't work. Could you please give me some insight? I would like to actually have my shop up and going soon (products are done and pics are taken but I am nervous about all the tax stuff!)
Re: any etsy store girls here?
You need to register with the state to receive a tax ID. They will tell you what % rate to collect and how often you will need to file and pay it to the state.
After that, you can set up your tax in Etsy or Paypal. I prefer to have it set up in Paypal as I sometimes have sales outside Etsy. I keep track of sales taxes collected in a spreadsheet and report them to the state 2x a year.