Posted on 02/08/2015 4:12:46 PM PST by goodwithagun
I was thinking about selling my arm knit infinity scarves on Etsy. I've discovered I need to get a fed tax ID number, register my business with my state (Ohio), create a sales tax payment account on the state's tax site, get a vendors license, and potentially charge and pay local sales tax. All this for what I'd consider my "egg money"? If you sell on Etsy or know somebody who does, could you share the experience?
All that for some friggin’ SCARVES ?
I don’t use etsy (I sell at a local farmer’s market), but know a couple of women who do have an Etsy shop. The one who sells cards told me it’s good for her as she has been there from the beginning so her store shows up at the top of people’s searches on Etsy. A friend of mine said it was great for her at the beginning (custom artwork), but business has slowed as there are so many sellers.
Not for me as what my husband and I make (wood toys) are already well represented there. But it is probably much easier than doing farmer’s markets...exhausting!
Sabo sells on Etsy. That’s where I got my Ted Cruz “blacklisted and loving it” t-shirt.
There used to be laws against selling goods like that that were made at home. Don’t know if they are still out there, but that’s another pitfall.
Getting a federal tax id is fairly easy - you can do it online (watch out for the scamster sites that are mining for your personal info - only do business with IRS.gov.
But you shouldn’t need a separate tax id if you are doing this as a sole proprietorship, should you? Maybe some CPAs or tax lawyers could chime in. But decades ago, when I ran my own business as a sole proprietorship, I just used my SS number as my tax ID.
My daughter has an etsy shop. Not much volume, but it covers her materials cost and such. Plus it’s stuff she enjoys making.
I have an etsy shop, as well. Same thing, not much volume, but I have sold several thousand dollars of stuff over the last couple of years.
I generally find etsy to be a good tool. They take a cut of the sale, but it keep me from having to mess with invoicing, customer files, etc., it’s well worth it, to me.
Pretty easy to set up items and means of sale, shipping, etc.
I’d rate the experience positive, so far.
Apparently it is now legal, but difficult, to sell your own knitting.
http://www.nytimes.com/1984/11/06/us/us-ends-ban-on-home-knitting-for-sale.html
Good grief! They must have state by state laws. I live in WI and didn’t have to do any of that to sell on ETSY.
I must tell you though that the fees for listing items have cost me more than the profit I made for selling one item. My stuff just wouldn’t sell. So I am letting my listings expire.
It’s a real business, so you have to follow the rules, same as the rest of us.
There are only a few states in which you don’t have to charge sales tax. According to the website Wisconsin sellers have to charge sales tax to Wisconsin residents. It’s not just an Ohio thing.
I don’t have any information that could help you, but I bet your scarves are pretty. :)
It is all about having something people really want to make it worth even selling there or even making it worth starting that business.
I would take a look at all the products in your category and see if yours is better than those already selling there and if your price is at an equal level. If you do not have a better product or price then skip. If it is better then it might be worth it. Going to most fairs and craft shows you will also need a tax number, a second option after joining Etsy for more sales.
That’s the thing: Selling a few handmade items shouldn’t require a consult with attorneys or accountants. I just want to make a few bucks to stash away for vacation, kids’ shoes, a nice gift for hubby.
It’s almost like Big Gov doesn’t want us to be financially independent!
They are starting to crack down on kid’s lemonade stands too.
Also, I’m the one who gets caught. I always get caught. If I sold one scarf without filing it in triplicate with Uncle Sam, they’d use me to make an example of lol!
(It doesn’t.)
Sad Esty Boyfriends - a compilation of guys who aren't happy about modeling.
You might try finding a Facebook group that lets you do that kind of selling- they are very popular around here, for all kinds of things.
I make post office box banks (the best in the country!), among other things, and I find gun shows to be a cheap, easy place to sell them. You pay your money and show up (if you’ve never been to a gun show, there are almost always people selling jewelry and often clothing to women). I do also sharpen knives at shows, and sell other items (mostly things I make or modify myself).
That Sad Boyfriends of Etsy reminds me of when I followed “The Dark Side of Ebay” on LiveJournal many years ago. There were some truly warped things people were trying to sell.
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