For those of you who sell online at Etsy and others like that do you have an EIN#? I was looking into selling some of my finished cross stitch designs online but didn't know how to go about it. I've found a few designs that I want to do just because they're so pretty but I can't give them to anyone (family) that would want them. LOL I'm sure they would take them to just make me happy. I would love to start selling some finished designs that I put all my work into. :)
Thanks!
Quoting gogetem:
Everyone has one... Its your social security number. In more rare cases, a person has to get a different number assigned, not sure in what cases, but to my knowledge, if it is a small business without employees, benefits, etc, you can use uour SSN.
First off, if you set up shop, do it at Storenvy.com - it's a free e-commerce site that you can customize. Way better than etsy! :)
And second, if you are making money from your crafts, you need to check with your state, city and county to see what taxes you need to file for and also with the Feds - if you operate under your own name as your business name you can file all money on your federal income taxes. If you operate under a DBA to make money you need to have that registered and file your money under that, including business taxes and such.
That's only if you are operating the business under your full name - like Jane Smith. But if you are Darlin' Productions, then you have to file for a DBA (Doing business as) name and a FEIN (Federal Employee Identification Number) to pay federal and business taxes as your business entity. If you are using your name, you can file on your federal income taxes.
Quoting gogetem:
Everyone has one... Its your social security number. In more rare cases, a person has to get a different number assigned, not sure in what cases, but to my knowledge, if it is a small business without employees, benefits, etc, you can use uour SSN.
I'm registered as a Limited Liability Company - LLC. It protects me in the event of a lawsuit. I saw an accountant up front. He told me all the steps to take. I don't have an EIN because I have no employees. I use my SSN. The whole process seems like a lot but it's not. Just take one step at a time and you'll be set up in no time.
I sell on Etsy and LOVE IT! Lots and lots of traffic. It's very well known.
I think you have to differentiate the two regardless of your name. I don't believe there is anyplace on your federal taxes to put earned income,(for a business like venture) You have to have a business name to do profits, losses, right offs.. I could be wrong but it does nothing for you if you file on your regular taxes but increases your income and may put you in another tax bracket.. You need the business ID benefits to do write offs for marketing, your losses. etc..
Quoting The_Monster_Mom:That's only if you are operating the business under your full name - like Jane Smith. But if you are Darlin' Productions, then you have to file for a DBA (Doing business as) name and a FEIN (Federal Employee Identification Number) to pay federal and business taxes as your business entity. If you are using your name, you can file on your federal income taxes.
Quoting gogetem:
Everyone has one... Its your social security number. In more rare cases, a person has to get a different number assigned, not sure in what cases, but to my knowledge, if it is a small business without employees, benefits, etc, you can use uour SSN.
This is true - I was just saying that's how you can file taxes without filing for a FEIN, like if you do it more as pocket change and spending money than as a profressional business with profits, losses, expenses, business taxes, etc.
Quoting Alwaysmotivated:I think you have to differentiate the two regardless of your name. I don't believe there is anyplace on your federal taxes to put earned income,(for a business like venture) You have to have a business name to do profits, losses, right offs.. I could be wrong but it does nothing for you if you file on your regular taxes but increases your income and may put you in another tax bracket.. You need the business ID benefits to do write offs for marketing, your losses. etc..
Quoting The_Monster_Mom:That's only if you are operating the business under your full name - like Jane Smith. But if you are Darlin' Productions, then you have to file for a DBA (Doing business as) name and a FEIN (Federal Employee Identification Number) to pay federal and business taxes as your business entity. If you are using your name, you can file on your federal income taxes.
Quoting gogetem:
Everyone has one... Its your social security number. In more rare cases, a person has to get a different number assigned, not sure in what cases, but to my knowledge, if it is a small business without employees, benefits, etc, you can use uour SSN.
13th Birthday present for my DD
- mom3cutieboyz
on Jul. 31, 2012 at 8:54 AM