I know someone who's looking to make some extra money and I brought up the idea of selling things on Etsy. I know of some things that this person could make that I do think people would buy. I read about their fees and policies and all of that but I was wondering what other information those who may have sold on Etsy have? I'm totally lost on what to tell this person about tax information and all of that that's related to a second income from selling things on Etsy. Any information would be helpful!
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For taxes: the seller would need to call the tax offices at the city, county and state level to find out what kind of sales or use tax licenses and forms they need to submit, and how often.
Sometimes the information is available on the websites, but I've found it's often a lot easier and clearer to call and talk to a person.
They may also need to file for a business / small business / DBA ("doing business as") license at the city, state and / or county levels, and possibly for a home occupation permit from the city. It might also be good to check with the HOA (if applicable) about restrictions on having a business out of the home -- usually it's not a problem if it's an Etsy business, since it won't involve freight trucks and in-house customers.
Those are the non-IRS things I can think of, off the top of my head (not being a tax expert)... I know it sounds like a lot, but a lot of the forms are one-time only, and I think it actually has the odd effect of making you prouder of your Etsy shop! Good luck to your friend.
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