Julie Berninger and Janet LeBlanc of Paper and Spark discuss the steps to take when starting an Etsy shop from a CPA's perspective. They cover topics such as understanding the difference between a business and a hobby, obtaining a DBA permit, opening a business bank account, and the importance of bookkeeping. They also touch on the issue of Etsy shop suspensions and the need for proper tax ID information. The conversation emphasizes the importance of treating an Etsy shop as a business and making informed decisions based on accurate financial data.
This is not legal or tax advice. Please obtain your own professionals.
Before starting an Etsy shop, it's important to understand the difference between a business and a hobby, as well as the legal requirements for running a business.
Obtaining a DBA permit (Doing Business As) is often necessary for running an Etsy shop under a name different from your own legal name.
Opening a business bank account can make bookkeeping and tax filing easier, even if it's not legally required.
Proper bookkeeping is crucial for tracking expenses, understanding profitability, and making informed business decisions.
It's important to provide accurate tax ID information to Etsy, and to keep track of all business-related transactions for tax purposes.
Etsy shop suspensions can occur for various reasons, and it's important to understand and comply with Etsy's policies to avoid suspension.
Sellers should be aware of their tax responsibilities, including sales tax and income tax.
Janet LeBlanc's GetLegit Toolkit is a valuable resource for product sellers to navigate their financial responsibilities.
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