The Etsy Seller's Simple Guide to Taxes - A Time and Money Saving Guide for Makers and Crafters
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About this ebook
Updated for Current Tax Laws and Forms
Are you an Etsy shop owner, product seller, or owner of a handmade business? When you began creating your handmade products, you may not have considered the tax rules associated with product selling. Now it's tax time, and you have no idea what to do! Enter the Etsy Seller's Simple Guide to Taxes. Don't let tax concerns take away from the fun of making and crafting. With this easy to read guide, you can quickly understand small business taxes to save you time and money!
After reading this book you will know:
-If your handmade business or Etsy shop is a hobby or a business
-What business structure to choose
-How to register your business with your state and the IRS
-Easy tax deductions you can take as a product seller
-What tax form to file as a product seller
-Easy tax deductions you can take on your tax return
-How to take an inventory and calculate your cost of goods sold
-What income to record as revenue
-How to do your Etsy shop bookkeeping
-If you need to pay self-employment tax
-And much more!
This book is for you if:
-You are a product seller who needs to understand taxes for small businesses
-You have a handmade business
-You are a product seller of any kind
-You have an Etsy business and want to understand Etsy seller taxes
-You want to understand home-based business taxes
-You sell products online on Etsy, Shopify, Amazon, eBay, or anywhere!
Running an Etsy shop, creating handmade products, or selling other products should be fun! Don't let taxes make you worried. Quickly understand all you need to know about taxes as a product seller so you can spend your time focusing on what you love most . . . . crafting and selling!
Why trust my advice? I'm an accountant and an Etsy Seller! Been there, done that!
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The Etsy Seller's Simple Guide to Taxes - A Time and Money Saving Guide for Makers and Crafters - Sarah Korhnak
Sarah Korhnak
The Etsy Seller’s Simple Guide to Taxes
A Time and Money Saving Guide for Makers and Crafters
Copyright © 2018 by Sarah Korhnak
All rights reserved. No part of this publication may be reproduced, stored or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise without written permission from the publisher. It is illegal to copy this book, post it to a website, or distribute it by any other means without permission.
First edition
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Contents
Introduction
1. So You Opened an Etsy Shop
2. Choosing a Business Structure
3. Registering your Business
4. Business Recordkeeping
5. Schedule C
6. Revenue
7. Expenses and Tax Deductions
8. Raw Materials, Inventory, and Cost of Goods Sold
9. Travel Expenses
10. Home Office and QBI Tax Deductions
11. Bookkeeping for Etsy Sellers
12. Self-Employment
13. How to Pay Yourself and Filing Your Tax Return
Conclusion
More From Sarah Korhnak
Notes
Introduction
You have finally done it! Opening an Etsy shop has been on your To Do List for quite a while, and you just listed your first item! Congratulations!
Before long, you will make your first sale, and you have already incurred your first expenses for supplies and materials. Eeeeeek! Now you are wondering, What does the IRS expect me to do about this revenue and these expenses? Am I a business or a hobby? What is tax deductible? What counts as a business expense? Is self-employment tax applicable?
Slow down, slow down. You have lots of questions, and this book is here to answer them as simply as possible. Yes, the IRS and your state have lots of rules, but with a little knowledge you can navigate those tax waters without capsizing.
Although I titled this book, The Etsy Seller’s Simple Guide to Taxes, I want you to know that the information presented is applicable for all types of product sellers. The same tax principles will apply to makers and crafters who sell their products at craft shows, on eBay, through Shopify, or on Etsy. No matter how you sell your products, or what products you make, the tax and accounting principles will be the same.
You may be wondering if I’m the right person to help you, so let me begin by telling you about myself. I graduated from college with a B.S. in Accounting, earned my CPA (Certified Public Accountant) license, and worked for a public accounting firm that specialized in audit for 7 years.
Throughout the last decade I have started several small businesses of my own (including an Etsy shop) and have been employed as a bookkeeper for several more. For better or worse, the IRS website and I have become well acquainted over the years!
Although the IRS tries to clearly explain everything on their website, all the rules, exceptions, and accounting jargon can be confusing for people new to small business and the world of taxes and accounting. That’s where I come in.
This book will cut through all the gibberish and explain the tax rules for your product selling business in an easy to understand way. The guidance I provide comes directly from the IRS website, but is summarized for your ease of use. Throughout this book you will find links to the IRS website where a particular topic is discussed. Click on the links if you would like to see the IRS information or for more nitty gritty details on a particular topic.
Like all good books about taxes and accounting, I need to give you a disclaimer! The information I have presented in this book is accurate, but every tax situation is unique. If you still have nagging questions after reading this book, do your own research on the IRS website or consult a tax accountant. I am not a tax accountant, just an accountant with lots of tax experience! I am not a tax attorney