Anyone know anything about setting up an etsy store and taxes?

I am looking into setting up an etsy store. (I will not be soliciting business on this site) But I am not exactly sure how it works with NY state tax. I know I would need a tax id but I am probably going to be laid off from work and I want to know if this would affect my unemployment and how I would claim the income. Any insight would be great!

Re: Anyone know anything about setting up an etsy store and taxes?

If your doing a etsy store I would just do it as a shop for now and not worry about making it official yet. As long as you don't net in a year (I think its $900) its not really a concern. Since paypal will be most likely the means of payment as long as you don't hit that amount there is no reporting. Your accountant (personal) can really tell you more info on that if your really concerned. BUT don't expect then to write off expenses if your not collecting sales tax or have a EIN.

If you want to collect state tax, then you have to file with the county your in as a business, then apply NYS to do taxes info and you will probably do business as a DBA since etsy really doesn't lend itself to be a LLC/INC unless you want to protect your personal assets. You would also apply to the fed. gov't for a EIN number which that is free.

Re: Anyone know anything about setting up an etsy store and taxes?

BTW i just went through filing as a LLC and it was $$$$$ but i don't sell anything on etsy yet. I Plan on putting up fine art prints eventually when the economy is a bit better when people start getting interested in buying prints as art in specialized frames again.

Re: Anyone know anything about setting up an etsy store and taxes?

Yes Paypal takes care of the 1099 if you hit a certain number. I'm an eBay seller and will have to pay in.
It's all on Paypals site. Igot my friend into selling her stuff on etsy and she was featured in their daily email which got her a ton of exposure. Good luck!

Re: Anyone know anything about setting up an etsy store and taxes?

I have an Etsy store, and am not really worried about because I don't make much money at all. As long as you aren't making tons of money, you should be fine. I do plan on talking to my accountant about it, because I want to get a tax resale number to do some of the bigger craft shows this year. I am registered as an s-corp for my freelancing business, and it wasn't that expensive at all to set up.