Jump to content
Rings of Salvation

Legal stuff for selling online?

Recommended Posts

I can't see your country. That's relevant for business stuff, if you choose to officially operate as one which you probably don't have to bother with if you're just hobby size. Apart from that, if you're selling through somewhere like Etsy, make sure you comply with their conditions. And don't make money off big commercial franchises without some level of allusion - see the Firefly Jayne knitted hat debacle on Etsy. HTH a little.

Share this post


Link to post
Share on other sites

In Washington state, one needs a state business license in order to have an internet presence.  That way one can sell across state lines.

Share this post


Link to post
Share on other sites

currently, if you stay below a certain income level on paypal, they, as of yet, can't be compelled to release your information.  i think it's something like $10,000 USD per month, but dont' quote me on that.

 

what this means is that you can sell a certain amount without being forced to report it...cash money = tax free.

 

 

BUT!!!!  since we're all being on the up and up.  you're not going to be penalized for having too much.  get a license if you're in doubt, I can't see them being too much.  keep records of your expenses and sales.  odds are, by the end of your first year, you're not likely going to post any profits anyways.

 

specifics tho, i can't speak to because i'm located in canada.  i don't know the ins and outs of american tax law.

Share this post


Link to post
Share on other sites

At least in Australia, you can offset other income such as partner's, with business losses. Expected for the first few years with documentation. They might get suss after that. But many people here don't bother going official unless they're earning a lot, and even then, well, sometimes tax people go round to the big markets and try to catch out the big fish. 

Share this post


Link to post
Share on other sites

I have also been exploring this issue.

So far other craft businesses have suggested

The small busness administration website.

The local Cornell cooperative extension office.

And the local chamber of commerce/ farmers market.

Some comunity collages will have classes and your local library may have additional resources.

For me the cooperative extension office as less than helpful, it was suggested I try the office for the next county over.

The SBA website has been a lot more promising.

My accountant quoted a $400 profit mark before I need to start dealing with NYS taxes. On the strate equivalent of the 1040 form.

Share this post


Link to post
Share on other sites

As I recall, you don't have to claim it on your federal taxes if your profit is less than $450 or some such.  However, if your state has a sales tax and you want to sell at craft fairs, farmers markets, ren faires, etc. they often require you to have a Tax ID to reserve a vendor space.  If that's the case, you're going to have to register as a business to get one.  I was going to go through the process a few months ago here in VA when I was starting to get serious about selling things again (do to looming furloughs)...but I've been too busy with school and the furloughs haven't hit my department yet, so I haven't actually done the leg work like I was going to.  You can kind of dodge the issue by selling online if you're small time (like most of us are).  It all depends on how honest you are and how much you're willing to risk getting caught.  Myself, I like to play by the rules so nothing bad happens.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×