Explain like I’m 5: Etsy Utah sales tax & business registration
January 16, 2017 12:21 AM Subscribe
I sell on Etsy and will be switching my inventory and hopefully making more money. I want to do it all right as I expand. But all of this is making my head spin! Do I need to register as a business too? A DBA? How?
Ok, I’m not a total tax idiot but I’m feeling like it . But I went down a rabbit hole and I’m confused. Please explain these steps like I’m 5. I’m working on expanding and upgrading my business to hopefully make more money.
I made $100 net last year so I assume that it’s still a “hobby” since I didn’t have to file taxes. (I’ve been a 1099 employee previously and done schedule-c forms before.) I live in UT and was going to register to collect/pay sales tax in UT (I only had one sale in UT to a family member so I don’t think that even matters.)
I know I can file annually since I currently make nothing in terms of tax liability. I also know I can set a tax rate for UT buyers or just pay it from my profits. I am only an online seller. No plans to be at any markets (I have a chronic illness.)
So, in order to collect sales tax and pay it, do I ALSO have to register as a business? Get a business license?
Do I have to register as DBA (doing business as)? I have an Etsy shop name/branding etc but it’s not like I have a business bank account for it or anything. It’s [my name] of [my business] when I send mail or whatever.
Can I do everything on online business registration site? Or do I need to do the DBA site too? I'm guessing sole proprietorship?
I think that’s basically this form?
Do I even have to do any of this with the amount of money I made even though I expect to make more?
Literally, from start to finish, what steps do I need to take and where?
I just want to do what I’m supposed to do and not owe some insane multi-thousand dollar fee for my tiny Etsy store.
Ok, I’m not a total tax idiot but I’m feeling like it . But I went down a rabbit hole and I’m confused. Please explain these steps like I’m 5. I’m working on expanding and upgrading my business to hopefully make more money.
I made $100 net last year so I assume that it’s still a “hobby” since I didn’t have to file taxes. (I’ve been a 1099 employee previously and done schedule-c forms before.) I live in UT and was going to register to collect/pay sales tax in UT (I only had one sale in UT to a family member so I don’t think that even matters.)
I know I can file annually since I currently make nothing in terms of tax liability. I also know I can set a tax rate for UT buyers or just pay it from my profits. I am only an online seller. No plans to be at any markets (I have a chronic illness.)
So, in order to collect sales tax and pay it, do I ALSO have to register as a business? Get a business license?
Do I have to register as DBA (doing business as)? I have an Etsy shop name/branding etc but it’s not like I have a business bank account for it or anything. It’s [my name] of [my business] when I send mail or whatever.
Can I do everything on online business registration site? Or do I need to do the DBA site too? I'm guessing sole proprietorship?
I think that’s basically this form?
Do I even have to do any of this with the amount of money I made even though I expect to make more?
Literally, from start to finish, what steps do I need to take and where?
I just want to do what I’m supposed to do and not owe some insane multi-thousand dollar fee for my tiny Etsy store.
Can I do everything on online business registration site?
You can register your business there, yes. You will need to obtain a *business license* afterwards from your county/municipality
do I need to do the DBA site too?
You need a DBA if you are registering a business with a name that is different from your own legal name. You will then be able to open a bank account under your DBA name. You need to file your DBA before applying for a business license.
I'm guessing sole proprietorship?
Yes.
I think that’s basically this form?
Yes, though it looks like that form is part of the registration process in the first site you linked to.
Do I even have to do any of this with the amount of money I made even though I expect to make more?
If you expect to make more this year, you should register.
Literally, from start to finish, what steps do I need to take and where?
Pretty much what you've already figured out. Then go find a nice CPA and sit down with them and have them explain what you'll need to keep track of and what your write-offs can be. Remember you have to file quarterly. Have the CPA do your taxes until you get the hang of it.
posted by ananci at 5:29 PM on January 16, 2017
You can register your business there, yes. You will need to obtain a *business license* afterwards from your county/municipality
do I need to do the DBA site too?
You need a DBA if you are registering a business with a name that is different from your own legal name. You will then be able to open a bank account under your DBA name. You need to file your DBA before applying for a business license.
I'm guessing sole proprietorship?
Yes.
I think that’s basically this form?
Yes, though it looks like that form is part of the registration process in the first site you linked to.
Do I even have to do any of this with the amount of money I made even though I expect to make more?
If you expect to make more this year, you should register.
Literally, from start to finish, what steps do I need to take and where?
Pretty much what you've already figured out. Then go find a nice CPA and sit down with them and have them explain what you'll need to keep track of and what your write-offs can be. Remember you have to file quarterly. Have the CPA do your taxes until you get the hang of it.
posted by ananci at 5:29 PM on January 16, 2017
This thread is closed to new comments.
posted by sarajane at 2:48 PM on January 16, 2017