ETSY and TAXES | Do You Need An LLC for Etsy? | Is Your Etsy Shop Considered a Business?

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  • เผยแพร่เมื่อ 28 ธ.ค. 2024

ความคิดเห็น • 128

  • @AlissaRose
    @AlissaRose  4 ปีที่แล้ว +6

    💖 FREE TRAINING 💖 *"The 3 Secrets to Digital Product Etsy Shop Success!"* 💸 ➡ www.alissarose.co/mmafreetraining 🥳 Let's work SMARTER not harder! 🤑

    • @freddysarmiento8287
      @freddysarmiento8287 10 หลายเดือนก่อน

      Alissa, so you started as a sole proprietor. and then switched to an LLC; did you work with printify as a sole proprietor? I'm on the fence, 'should I start as a sole proprietor on Etsy?' and can I work with a provider like Printify as a sole proprietor? Or should I just register an LLC just to avoid any unforeseeable issues? Would really like your help on this. Already been to a CPA, but I need to hear from a business owner.

    • @AlissaRose
      @AlissaRose  10 หลายเดือนก่อน

      @@freddysarmiento8287 I don't know much about printify. But yes, I started as a sole proprietor and then once I started making thousands I got an LLC (mostly because I was selling glassware and wanted to separate my personal assets from my business assets if someone were to break a glass, cut themselves, and sue... but it was also nice to separate the two because having a separate business bank account made bookkeeping much easier).

    • @freddysarmiento8287
      @freddysarmiento8287 10 หลายเดือนก่อน

      @@AlissaRose Hey! Alissa! Thank you so much for replying. I appreciate you taking the time to reply back. This really helps. In that case, I think it is worth just to register an LLC. I just felt like I shouldn't do it only because I'm a newbie at this - and wanted to wait to see if this venture fares well for me or not. But I guess business is business: whether you win small or win big.

  • @Katie-ki5be
    @Katie-ki5be 4 ปีที่แล้ว +96

    Thanks! Great info. One thing I know to be true is if you make 12,200 a year or less regardless of whether you are self employed or work for someone you don't have to pay taxes. I am a mom with child support and starting an Etsy store. My child support is not taxed so that income doesn't count, and if my Etsy store makes less than 12,200 a year in profit I can file as a non-filer meaning no taxes are owed. Just a note I wanted to add for anyone out there in my same position.

    • @saraitomblin9246
      @saraitomblin9246 4 ปีที่แล้ว +3

      Hi, im 18 and want to start an Etsy shop to get rid of stuff and make a little money. Do i still have to file for taxes? (I dont think I'll make 12,000 Haha)

    • @shaunware1232
      @shaunware1232 4 ปีที่แล้ว +2

      I want to start an etsy shop as well, and I also don't think I'll make 12,200 lol! Do we have to file still?

    • @---nj7hl
      @---nj7hl 4 ปีที่แล้ว +3

      @@shaunware1232 I would consult with your Tax Advisor. But if we filed our taxes that's how we got our 1st stimulus check right?

    • @linram6611
      @linram6611 3 ปีที่แล้ว +1

      Does this apply for minors?

    • @Katie-ki5be
      @Katie-ki5be 3 ปีที่แล้ว

      @@linram6611 I think it applies to everyone.

  • @h2t26
    @h2t26 3 ปีที่แล้ว +3

    I love how she tells everyone that she isn't a tax expert and to speak to one. Yet so many comments are asking specific tax and legal questions to the TH-camr. She is basically just telling you her experience cuase yours might be similar.

  • @Baobasaurawr
    @Baobasaurawr 4 ปีที่แล้ว +11

    I'm surprised how long I had to scroll to find what I was looking for. Great vid. Would like to see more like this.

  • @Lewi.s
    @Lewi.s 10 หลายเดือนก่อน

    Your video quality is top notch!

  • @mw7882
    @mw7882 4 ปีที่แล้ว +6

    Thank you. This was extremely helpful in explaining the one of the liability implications of filing as a sole proprietorship versus an LLC.

  • @floridabrit9572
    @floridabrit9572 4 ปีที่แล้ว +8

    This is the most super helpful information out of everyone. It explains everything you need to know to get your business started. Thank you thank you thank you 😘🙏

  • @mustard3687
    @mustard3687 2 ปีที่แล้ว +1

    God, this was the absolute best videos I've come across, thank you !!!

  • @Skyygems
    @Skyygems 4 ปีที่แล้ว +5

    I started an Etsy crystal shop & tax season is just around the corner. Great info! Thank you SO MUCH!🙏🏾

  • @mariajuan1805
    @mariajuan1805 3 ปีที่แล้ว +1

    Honestly, your channel has every little piece of information I need. THANK YOU!

  • @jinyunzhou6737
    @jinyunzhou6737 2 ปีที่แล้ว +6

    Hey, I also noticed you do digital products as well. Curious did you set up an LLC for your digital product shops on Etsy and why? Thanks!

  • @soothingrainfall7473
    @soothingrainfall7473 3 ปีที่แล้ว +1

    great video, one of the only etsy tubers to address this

  • @brittsar
    @brittsar 4 ปีที่แล้ว +6

    Thank you! Short and simple and straight to the point, thank you for answering exactly what I was asking.

  • @carolinapantelakis9415
    @carolinapantelakis9415 3 ปีที่แล้ว +2

    Thank you soooo much! Halfway through the video I already felt so much better :)

    • @AlissaRose
      @AlissaRose  3 ปีที่แล้ว

      You're so welcome! Thanks for watching!

  • @jacquelinebennett
    @jacquelinebennett ปีที่แล้ว

    I am trying to start up a jewelry company, and My biggest worry concern is the quarterly tax payments…

    • @AlissaRose
      @AlissaRose  ปีที่แล้ว +3

      In NY you pay yearly taxes after the first year of business. Keep track of all your expenses and just learn about it near the end of this year/get an accountant to help you. To be safe, just stash away 30% of whatever you make.
      Don't let the fear of taxes stop you from doing something that is potentially life changing.

  • @TheRebekahShowTV
    @TheRebekahShowTV 4 ปีที่แล้ว +3

    I’m SO THANKFUL that my mom is my accountant. She handled everything for me 😭

  • @JS-jj1vg
    @JS-jj1vg 11 หลายเดือนก่อน

    Do you need a vat number to sell if you don't have a business or a national insurance number for UK citizens

  • @stellatez
    @stellatez 4 ปีที่แล้ว +9

    Hi! Love your vids! I had a quick question; Am I automatically a sole proprietorship when I make my Etsy shop or do I need to fill out other forms?

  • @kelleyzincone
    @kelleyzincone ปีที่แล้ว

    How would this work if there are two people involved? How would the pay be distributed if it is not all being disbursed to one person? I actually don't know how the pay would be distributed with one person either.

  • @antoinette-mays
    @antoinette-mays ปีที่แล้ว

    Thanks for this video. I’m creating an LLC for my business. I’ll have 2 Etsy shops because the brands will be totally different, a TH-cam channel under my name, and the LLC will probably have two DBA’s. For your Etsy shop how did you do with your LLC versus your Etsy shop name versus your TH-cam channel? Is everything the same name as your LLC? Is your banking account name the same as your LLC? If your Etsy shop name is different than your LLC does the LLC or banking name appear anywhere on the shop?

    • @AlissaRose
      @AlissaRose  11 หลายเดือนก่อน +1

      It’s all under the same business name

  • @ALB88977
    @ALB88977 3 ปีที่แล้ว +3

    QUICK AND INFORMATIVE AND CLEAR, ALWAYS! You are appreciated, Queen!

  • @disasterDee
    @disasterDee 4 ปีที่แล้ว +15

    I’m still a little confused. I’m in Florida, do I need to file for an LLC and for an EIN?

    • @kali18
      @kali18 4 ปีที่แล้ว +1

      Actually I’m a sole proprietor and I still have a EIN. I don’t believed using a social security for business. But you can file for an One person LLC if you think your busy is sue-able. Hope that helps :) . If you have a digital download business than a Sole Proprietor with an EIN is just fine.

    • @rosihernandez1210
      @rosihernandez1210 3 ปีที่แล้ว +1

      @@kali18 so what would you recommend. I really don't know wheito startr. First EIN and after that you register your business?

  • @starryreader
    @starryreader 2 ปีที่แล้ว

    Could you please do a digital product only Etsy business version of this video?

  • @Ariasjulie18
    @Ariasjulie18 4 ปีที่แล้ว +2

    This is exactly what i needed, thank you so much !!

    • @AlissaRose
      @AlissaRose  4 ปีที่แล้ว

      julie Arias you’re welcome! Glad to help!

  • @Noa-g1ex
    @Noa-g1ex 2 ปีที่แล้ว

    This is so helpful, tysm 🙌🏻

    • @AlissaRose
      @AlissaRose  2 ปีที่แล้ว

      Happy to hear that, Noa! Thanks for watching :)

  • @lindseyhughes9701
    @lindseyhughes9701 3 ปีที่แล้ว

    The most helpful video I've found by far!

    • @AlissaRose
      @AlissaRose  3 ปีที่แล้ว

      Hi Lindsey! Happy to help. Thanks for watching!

  • @mindsofgreatness
    @mindsofgreatness 4 ปีที่แล้ว +2

    Great info, keep it up. Learned a lot and subscribed!

  • @luhvleeladii
    @luhvleeladii 4 ปีที่แล้ว +8

    Thanks for this video! When you were a sole proprietorship, did you have to register or anything with the state or county? I want to start my etsy soon, only digital for now.

    • @AlissaRose
      @AlissaRose  4 ปีที่แล้ว +3

      No, I did not, but that same year I applied for my LLC and then filed all my income from my small business my first year selling on Etsy.
      You're already a business if you intend to make money online if you register for an LLC or if you don't.

    • @luhvleeladii
      @luhvleeladii 4 ปีที่แล้ว +2

      @@AlissaRose Thanks! I've created my shop but only have one item so I have to build it up🙏🏾

  • @valb4184
    @valb4184 ปีที่แล้ว

    This was extremely informative. If my state requires me to file sales tax on a monthly basis. Does Etsy handle those or do I need to file it?

  • @gabbysoto04
    @gabbysoto04 4 ปีที่แล้ว +4

    Due to start up cost and research expenses, my business income is lower than my expenses can I still file taxes and get the write offs? I do have a full time job as well so I will have a w2

  • @cristinajones6277
    @cristinajones6277 4 ปีที่แล้ว +7

    This was exactly the info I was looking for. Thank you!

  • @thuzarthatforyou5889
    @thuzarthatforyou5889 2 ปีที่แล้ว

    Thank you it help a lot 🥰

  • @raymondesquibel941
    @raymondesquibel941 4 ปีที่แล้ว +3

    Thank you for the information.

  • @joannalee8581
    @joannalee8581 3 ปีที่แล้ว

    Which quickbook option is the best to go? There's a "Self-Employed" option and "Small Business".

  • @CupcakeCottage
    @CupcakeCottage 3 ปีที่แล้ว +2

    $500 and you are handing them a quickbooks print out that’s already done for them? Omg, that’s a lot!

  • @mrsjessica77
    @mrsjessica77 3 ปีที่แล้ว +1

    what if my etsy shop is only carrying digital products? what will be different, do i still need quickbook or what other advice i need to know, for taxes for digital products, your advice will be greatly appreciated.

  • @TheFerclauflo
    @TheFerclauflo 4 ปีที่แล้ว +3

    Super useful! Thank you

  • @wilapblkhistory8310
    @wilapblkhistory8310 4 ปีที่แล้ว +2

    Awesome! Thank you for the info!

  • @melle1003
    @melle1003 4 ปีที่แล้ว +1

    Thank you for all the info

  • @LennyYT
    @LennyYT 3 ปีที่แล้ว

    Do you have a separate routine for keeping track of your self development purchases outside of quickbooks?

  • @mommyscribbles
    @mommyscribbles 4 ปีที่แล้ว +2

    I didnt know you could use quick books for book keeping!! Thanks for this video :)

  • @jenniferknight1511
    @jenniferknight1511 4 ปีที่แล้ว +1

    Thanks! That was helpful!

  • @Meoxypoo
    @Meoxypoo 4 ปีที่แล้ว +2

    Idk if you'll see this but I am planning on starting my business on Etsy, just selling stickers and art prints. I have some tech and printers to buy but should I get a Chase business account first so I can make those purchases with that account? Or can I do it with my personal card for now and then get a business account, or will that be too much of a hassle for tax time? I'm not sure what to do.

    • @lisasmith1798
      @lisasmith1798 4 ปีที่แล้ว

      Maybe a dba you can still get a business account. Look into it it’s a lot cheaper than an llc

    • @saraitomblin9246
      @saraitomblin9246 4 ปีที่แล้ว +1

      @@NostalgiaBoiLofi did you apply for a business license? I want to do this for fun, but this video stressed me out 😭😭 i didn't think I'd have to do taxes or bookkeeping

    • @saraitomblin9246
      @saraitomblin9246 4 ปีที่แล้ว

      @@NostalgiaBoiLofi at what amount of money do i start filling for taxes?

  • @stevenchew9662
    @stevenchew9662 4 ปีที่แล้ว +2

    i love this! But something my wife Is pulling her hair out for is - does she need a business license and does she need a business permit? Also... does anyone know this? - Does she need a TIN? Is that the same thing as a business license?

    • @AlissaRose
      @AlissaRose  4 ปีที่แล้ว +1

      Tax ID # Q explained at 2:00 min in

  • @annascrystalshop
    @annascrystalshop 4 ปีที่แล้ว +5

    This video is so helpful, thank you so much 😊

  • @alisonhasselquist7729
    @alisonhasselquist7729 4 ปีที่แล้ว

    So, I guess I won't have much to write off. I do digital prints of my photography and haven't purchased a new camera or anything. Will it still be worth my time to sell on etsy?

  • @AS-zn3zd
    @AS-zn3zd 4 ปีที่แล้ว +5

    well, never ever ever mingle you personal expenses with business. Business bank account should not include your personal expenses especially you have LLC.

  • @Jasmine-kp3vd
    @Jasmine-kp3vd 4 ปีที่แล้ว +2

    i’m totally confused! i’m doing a slime shop on etsy and i’m so confused on if i need a licensee, please help!

    • @lisasmith1798
      @lisasmith1798 4 ปีที่แล้ว

      Look into a “DBA” it’s cheaper than an llc and sole proprietorship might be a little risky. I would contact your cities department of finance.

  • @pinedovestudio2816
    @pinedovestudio2816 3 ปีที่แล้ว

    I just created a LLC and EIN, but once switching on Etsy and updated the tax legal info. Etsy says it can’t be verified? Did this happen to you? If yes, what steps did you have to take for Etsy to verify new legal entity?

    • @AlissaRose
      @AlissaRose  3 ปีที่แล้ว

      This did not happen to me no. I would contact Etsy

  • @donnathao40
    @donnathao40 2 ปีที่แล้ว

    So is product liability insurance even necessary if u got a LLC?

  • @shariparker4823
    @shariparker4823 2 ปีที่แล้ว

    Can't you just get insurance as a sole proprietor?

  • @JamieDedeaux
    @JamieDedeaux 3 ปีที่แล้ว

    I currently live in Nevada and I'm opening cottage business as LLC through the state. Do you know if I'm allowed to sell on Etsy as well because I have a cottage business and not commercial?

  • @SusyMaldonado
    @SusyMaldonado 3 ปีที่แล้ว

    Nice video! Do we have to file a paper to become sole proprietor? And do people have to pay quarterly taxes for running an Etsy shop🤔

    • @AlissaRose
      @AlissaRose  3 ปีที่แล้ว

      I'm not a tax professional, so I can only really share what I shared in this video! I would seek out a different video where a tax professional can help you with your questions!

  • @Rosario_Ruiz
    @Rosario_Ruiz 4 ปีที่แล้ว +1

    Hello, I'm mexican but I have a account in USA and I start to sale in Etsy and use my USA account, I want to know how I paid taxes, if I living in Mexico but my deposits are in USA? I hope u can help me with this

    • @annyxo8764
      @annyxo8764 2 ปีที่แล้ว

      Did you figure it out? How did you do?

  • @AlissaRose
    @AlissaRose  4 ปีที่แล้ว

    🎉 *ENROLLMENT IS NOW OPEN for MMA 2.0!* 🎉 - bit.ly/enrollmma
    ⚡Doors Closing Soon!⚡

  • @hopetennill4892
    @hopetennill4892 2 ปีที่แล้ว

    Would a digital business need a EIN?

  • @dezmarie36
    @dezmarie36 2 ปีที่แล้ว

    Thank you thank you thank you

  • @ChadLubinski
    @ChadLubinski 3 ปีที่แล้ว

    Thank you!!!

  • @cierrablue
    @cierrablue 3 ปีที่แล้ว

    Helpful. A++

  • @AS-zn3zd
    @AS-zn3zd 4 ปีที่แล้ว +1

    What is CFB file from bank?

  • @Lalyipod21
    @Lalyipod21 4 ปีที่แล้ว

    Ok now im scared cause i live in puerto rico and i have no idea about taxes and stuff cause here the laws are different

    • @---nj7hl
      @---nj7hl 4 ปีที่แล้ว

      I would suggest to reach out for a reputable, good Tax advisor/CPA to answer your tax questions. Also, look up your state website and see what their requirements are in regards to taxes. Buena Suerte!

  • @ilsegomez8087
    @ilsegomez8087 3 ปีที่แล้ว

    So if I sell small ceramic soap dishes I need a LLC?? Since there are humans who love to sue and get free stuff

  • @plant-basedtina3833
    @plant-basedtina3833 3 ปีที่แล้ว

    For some reason when I click your link, and I hit open shop, nothing happens. Is there a certain browser I need to be on to sign up through your link?

    • @AlissaRose
      @AlissaRose  3 ปีที่แล้ว

      Nope, it should work. You can try asking Etsy support if you can't figure it out.

  • @mamasaenzcreationsbretinas8136
    @mamasaenzcreationsbretinas8136 3 ปีที่แล้ว

    Is the llc a one time payment?

  • @SarahWheeleeTravels
    @SarahWheeleeTravels 4 ปีที่แล้ว +1

    thank you!!!!

  • @yadyylolzz
    @yadyylolzz 4 ปีที่แล้ว +2

    i have a question, when u are a minor, do you still need to file for taxes ??

    • @choko-lea6244
      @choko-lea6244 4 ปีที่แล้ว +6

      Yes, if you’re confused about anything I suggest going on Avvo and asking legal questions there, I’m a minor too and having avvo really helps out :)

    • @Katie-ki5be
      @Katie-ki5be 4 ปีที่แล้ว +1

      Not if you make less than 12,200 a year in income.

    • @yadyylolzz
      @yadyylolzz 4 ปีที่แล้ว

      Katie ohh okay tyyy

    • @AustinandJax
      @AustinandJax 4 ปีที่แล้ว +4

      Can Minors Buy or Sell on Etsy?
      All Etsy account owners must be at least 18 years of age, as stated in Etsy’s Terms of Use. Individuals under the age of 18 are considered minors on Etsy. A minor may not create their own Etsy account, regardless of whether they intend to buy or sell on Etsy. Read our Minors policy.
      If we believe a minor has accessed an account in violation of our policies, the account may be permanently closed.
      Minors aged 13-17
      Minors between the ages of 13 and 17 are permitted to use Etsy’s services only if they have the appropriate permission and direct supervision of their parent or legal guardian. The account must be registered with the parent or legal guardian’s information.
      Their parent or legal guardian is responsible for any and all account activity conducted by a minor on the account.
      If your child is between the ages of 13 and 17 and wishes to use Etsy, the account must meet the following criteria:
      All financial information on the account must be under the parent or legal guardian’s name.
      The full name on the account must be the parent or legal guardian’s name.
      If a minor has a shop, the parent or legal guardian must be listed as the owner on the shop’s About page. Minors may not be listed as a shop owner.
      The email address on the account must be registered to the parent or legal guardian.
      Minors under 13
      Minors under 13 may not use Etsy under any circumstances. However, a parent or legal guardian may open an account and run it on behalf of the minor.

    • @yadyylolzz
      @yadyylolzz 4 ปีที่แล้ว +1

      @@AustinandJax thank you sm!

  • @daisye2678
    @daisye2678 4 ปีที่แล้ว +1

    Thank you

  • @nataliemonge977
    @nataliemonge977 4 ปีที่แล้ว +1

    Hi Alissa thank you for the information. My question is if I open an Etsy shop do I use a personal bank account or do a business account?

    • @Gigichew
      @Gigichew 4 ปีที่แล้ว

      hi! I personally think business account is just more manageable in the end because you have a credit card and debit card thats separate from your personal stuff. It makes expensing things and categorizing things SO MUCH easier. this is my first year doing expenses and filing for my business and i have to go through 6 personal cards to find ALL my expenses. i wish i just opened up a business account!!

  • @Angela-uq1cs
    @Angela-uq1cs 4 ปีที่แล้ว

    That was very helpful thank you

  • @kylacayasa9803
    @kylacayasa9803 4 ปีที่แล้ว

    Is tin number required?

    • @AlissaRose
      @AlissaRose  4 ปีที่แล้ว +1

      EIN number? With an LLC your use your EIN ID, as a sole proprietor you use your SSN.

    • @followmeintofitness5578
      @followmeintofitness5578 4 ปีที่แล้ว

      Alissa I have a sole proprietorship and an ein. It’s free to apply for and only takes a few minutes.

  • @abigail6210
    @abigail6210 4 ปีที่แล้ว +3

    HUH?

    • @choko-lea6244
      @choko-lea6244 4 ปีที่แล้ว

      What are you confused about?

  • @sugarjones8047
    @sugarjones8047 4 ปีที่แล้ว

    looks like laurdiy

  • @vanninany
    @vanninany 3 ปีที่แล้ว

    Thank you!!