feuervogel: photo of the statue of Victory and her chariot on the Brandenburg Gate (Default)
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?

Date: 2013-04-20 01:48 am (UTC)From: [personal profile] firecat
firecat: damiel from wings of desire tasting blood on his fingers. text "i has a flavor!" (Default)
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.

Date: 2013-04-19 09:47 pm (UTC)From: [identity profile] 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.

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feuervogel: photo of the statue of Victory and her chariot on the Brandenburg Gate (Default)
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