So, etsy

[feuervogel]

I'm thinking of starting an etsy shop to sell crocheted things and quilted things and whatnot, but I have no idea about the tax implications of it. If I sell to people *in* NC, I have to collect sales tax (or take it out of the sale price); if I sell to people *outside* NC, I don't.

Do I have to register as a business so I can send the state what meager sales taxes I collect? (I'm assuming I won't sell more than $100/mo.) What's the cutoff for hobby vs business, anyway? The IRS says it has to do with the intent to make a profit. Well, sonny, I wouldn't be selling shit if I didn't want to make money off it. Here is a more plain-English discussion of that.

I don't know, y'all. I just want to make some stuff and sell it to people at more than it cost me to make it.

Does anyone have experience with this sort of thing?

Comments

[firecat]

For the IRS I think you have to pay tax if you make over $400 a year in profits. Also if you want to deduct business expenses.

For NC it's free to get a tax ID and you can get the ID and fill out the tax form online.

[corpsefairy.livejournal.com]

I'm reasonably sure that if you don't think you're going to make more than $100/month, the IRS basically considers it a hobby and doesn't care. You do have to pay in-state sales tax, though.