setting up a small business question

[Former_Member]

Hi all,
I'm not sure if this is the right type of question for this team, but I am wondering what legal things are needed in having an etsy shop. There's a lot of different info out there when I google the topic, so am hoping for some clearer answers. I live in Portland, OR where there is no sales tax, so do not think I need to worry about sales tax, even when selling to someone out of state, is this right? I will be moving to CA soon though, so imagine I will need to do something different to account for sales tax then? And then as far as I can tell I just need to register with my city with my business name as a sole prorpetorship and that is it? And what's all this about getting an EIN? I don't sell very much, so don't know if I even need to worry about this stuff and if I just claim what I do sell under hobby on my personal taxes? Thanks for any info in advance! Much appreciated!

[JGouveia]

Hi G.O. - logistically you should run these questions by a tax accountant, but since your sales are minimal, you don't really need to worry about anything right now because your business would still be considered a hobby. Keep in mind you only pay taxes on your profits - so it would be your sales less any expenses (etsy fees etc).

You can look up this subject on irs.gov (hobby vs business). As you generate more income, it will be good for you to understand what you need to do. I'm not sure what the state of Oregon or CA require, but each should have a state tax guideline page.

Good luck on your future sales!
Jacquie Gouveia