A Crafts Community For Craft Ideas & DIY Projects - Craftster.org
Help | About | Contact | Press | Advertise | Terms | Site Map
Welcome, Guest.
Please login or register.
Random Tip: Need help? Click the HELP link at the top of the screen to read the docs or ask at the Help Desk.
Total Members: 302,542
Currently Running With Scissors:
545 Guests and 12 Users
Home Craftster Community Crafting Articles Craft Tutorials My Craftster Crafting Calendar City Guides Craft Shop


Pages: [1]
Jump to page:
  Show Images Only     Send this topic  |  Print  |  Bookmark  
Topic: Does Etsy count as 'self employed'?  (Read 2726 times)
Tags for this thread:  Add new tag
Share the love... Pin it Submit to reddit add to Wists
1+
 
DustyChica
Offline Offline

Posts: 141
Joined: 09-Jul-2010

The Doctor's Companion


View Profile
« on: August 09, 2010 04:45:05 PM »

This is for people in the US, since I live there . . .

I was looking something up on the IRS website a couple days ago, and it says that if you make more than $400 a year selling something - be it handmade stuff or a service - then you have to file taxes as a self-employed business. But I assumed this is only if you have a proper business license and whatnot . . . does Etsy count as being self-employed? I mean, you'd have to sell a lot of crafts to make $400, but I don't want to sell things, make money, and get in trouble at the end of the year.

Anybody have any idea?
THIS ROCKS   Logged

"People assume that time is a strict progression of cause to effect. But actually, from a non-linear, non-subjective point of view, it's more like a big ball of wibbly-wobbly, timey-wimey . . . stuff."
- The Doctor
[/color]
Eliea
Tutorial Contributor

Proverbs 31:13 "She seeketh wool, and flax, and worketh willingly with her hands."
Offline Offline

Posts: 10463
Joined: 09-Aug-2006


View Profile WWW available for personal swaps
« Reply #1 on: August 10, 2010 07:37:20 AM »

based on that info I'd say it doesn't matter if you have a business license or not if you make that much money you are self employed. I'd also say if you ARE making that much money then you need a business license.
You also should look up your state regulations on self employment. My state has the laws set up so that if you've made a certain amount of money in a year doing anything then you need a business license. it's a lot lower than that 400 dollar amount.
THIS ROCKS   Logged
Pan-Gaia Designs
« Reply #2 on: August 26, 2010 12:04:48 PM »

I've been fiddling with my own stuff for ages and can answer: yes, you are considered self employed if you sell on Etsy.  You may only be making a tiny amount, relative to your 'day job' but it still counts. 

The IRS will want its cut, of course.  So far, it's about 1/3 of your profit.  I suggest getting a decent, small bookkeeping system to track stuff - I've had really great luck with WorkingPoint (www.workingpoint.co m) for setting up and keeping simple books.  It's free and can grow with you until you decide if you need something bigger.

Your state may or may not have different ideas about what you need to do.  In Texas, where I am, you do not need a business license to sell your crafts, but you will be nailed to the wall if you do not properly report, collect, and submit State Sales Taxes.  In fact, at shows that I go to, one of the first things that they check at the door is your license - and they may spot check it onsite too.

I suggest that you do a quick google search on your own home city and state, like "Houston Business License" and then give the appropriate authorities a call.  Believe it or not, the authorities are usually very friendly and helpful.
THIS ROCKS   Logged
MelissaDawnDesign
« Reply #3 on: March 17, 2011 05:47:12 PM »

Also check into your deductions.  WI state but deduct anything we spend money of for the business. Such as gas to get supplies/mail a package, supplies for anything for the business. I'd have to double check with my husband but it deducts the total amount of your taxable income.

Check your state laws and call them so that you don't get bit in the butt later.
THIS ROCKS   Logged

Crafts and Cavaliers that's What I'm about. Wink
DaBunny
Offline Offline

Posts: 303
Joined: 09-Aug-2005

Stay clean. Make soap.


View Profile WWW
« Reply #4 on: May 17, 2011 10:50:47 AM »

You need to check with your state to see if you are required to register as a business to sell on etsy. If so, then yes, you would be self employed even if you did NOT make $400. As a business you are required to report all revenue, but you also get to report expenses. You can safely show a loss of profit for three years in a row. Many new businesses do. So it's not necessarily about how much you make, that would make you self employed.
THIS ROCKS   Logged

Rebecca's Soap Delicatessen - Buy soap.
Soap Deli News - My soap blog.
CraftyChef
Offline Offline

Posts: 2843
Joined: 26-Jun-2005

Am I retired yet?


View Profile WWW
« Reply #5 on: May 28, 2011 06:39:36 AM »

Someone needs to change that $400 to a LOT more. $400 is NOT making a living!
THIS ROCKS   Logged

flhusker
« Reply #6 on: July 18, 2011 06:05:21 AM »

I just applied for membership to the craftster team on etsy.  What's the next step?
flhusker
THIS ROCKS   Logged
Threads you might like:
Pages: [1] Jump to page:
  Send this topic  |  Print  |  Bookmark  
 
Jump to:  



only results with images
include swap threads
advanced search



your ad could be here!

How-To Videos
Coachella Style Guide With Alessandra Ambrosio
Music Festival Fashion Must Haves on a Budget
We Spy: Will You Wear the Socks With Sandals Trend?
How to Update Your Spring Wardrobe on a Budget
How to Rock the Midi Skirt Trend
Latest Blog Articles
DIY Summer
Craft Challenge 101 Announced - Stash Buster
July 8, 2014 Featured Projects

Comparison Shopping




Support Craftster
Become a
Friend of Craftster

Buy Craftster Swag
Buy Craft Supplies
Comparison Shopping

Craftster heartily thanks the following peeps...
Moderators

Follow Craftster...






Powered by MySQL Powered by PHP Powered by SMF 1.1.11 | SMF © 2006-2009, Simple Machines LLC
SimplePortal 2.3.5 © 2008-2012, SimplePortal
Valid XHTML 1.0! Valid CSS!

Copyright ©2003-2014, Craftster.org an Internet Brands company.