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

[feuervogel]

Hillsborough Town Code, chapter 8, article 1.

Sec. 8-1. - Definitions.

The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Business includes any trade, occupation, profession or other activity engaged in by any person or caused to be engaged in by any person or caused to be engaged in by him with the object of gain, profit, benefit, or advantage either direct or indirect, except that the term business does not include occasional and isolated sales or transactions by a person who does not hold himself out as engaged in business.

Conducts a business. A person conducts a business when he engages in one act of any business. If a person is listed in the yellow pages of the telephone directory issued by the telephone system serving that town that shall be prima facie evidence that the person is conducting a business.

Within the town. A person conducts a business "within the town" when he maintains a business location within the town or when, either personally or through agents, solicits business within the town, or picks up or delivers goods or services within the town.

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See the italicized section under "business".

[beth_leonard]

So it sounds like in your local town you don't need to register as a business. That's a relief at least. It will also help you with the HOA. In some towns people aren't so lucky.

--Beth