I am a firm believer that everyone has a dream on their heart that will help propel them into their purpose. Many times, people use “Not having enough $” as an excuse to not keep reaching for their goals. Well, my goal is rebuilding Dallas, and because I don’t have a gazillion dollars yet, I use Etsy as a platform to make my dreams come to life. You can utilize Etsy as a way to get extra funds…maybe you want to get out of debt, save for that family vacation, or renovate the kitchen…yep, Etsy helped me do all of that too. Don’t let theunknown scare you from jumping in. Here is all the pre-work I wanted to give to future Etsy sellers so that you are unstoppable.
Annual Taxes: You will need to claim your Etsy sales on your annual taxes. Etsy will not send you a 1099-K form unless you make over $20,000 or have over 200 payment transactions. When you do your “normal taxes” there is an additional spot that you can claim other profits you have made throughout the year. Typically, with smaller sales, I did not pay quarterly to the IRS. As our sales grew we did start paying quarterly tax payments to the IRS. You can learn more about tax info here: https://help.etsy.com/hc/en-us/articles/360000336447-Will-I-Receive-a-1099-K-Tax-Form-From-Etsy-?segment=selling
Sales Tax Registration: Before your Etsy shop goes live, you will want to create a Sales Tax Registration, so that you can pay quarterly taxes on it. Don’t let this deter you from setting up your shop. You can set up your shop first to get everything in place before you register. In most states it is under $200 (one time fee). In Texas, it is $189, typically quarterly taxes when I first started off were under $50 per quarter. However, if you do not pay on time, there is a $50 penalty, so make sure you set calendar reminders for yourself. For Texas, you can find due dates and FAQs here: https://comptroller.texas.gov/taxes/sales/
**There are a lot of ads for sales tax registration, so make sure to find your specific state (typically has .gov at the end of the web link). For Texas Sales Tax permit Registration, go here: https://comptroller.texas.gov/taxes/permit/
To collect sales tax, you do not need an LLC, but with a social security #, you can enter into Etsy as a Sole Proprietorship. You can choose which type of business is best for you, but for those just starting on Etsy registering for sales tax under your social security works as a good option. People register for LLCs because it limits your liability. However, if you are selling from home on Etsy, I don’t expect anyone is going to try to sue you for unfair business practices and most current Etsy shops are Sole Proprietorships. You can learn more about choosing your business type here: https://www.etsy.com/seller-handbook/article/3-legal-tips-for-starting-your-etsy-shop/45727872134
Materials: Etsy is all about being handmade! So you should have a good idea of where to source your materials from before you start your shop. Here is where I source my materials from for my graphic prints.
- Heavy-weight matte paper (they also have a variety of card/envelopes and will send samples) https://www.redrivercatalog.com/
- Canon Pro 100 Series Printer https://www.amazon.com/Canon-Wireless-Professional-Airprint-6228B002/dp/B0095F5BCS/ref=sr_1_4?dchild=1&keywords=canon+pro+100+series+printer&qid=1590428529&sr=8-4
- I use a continuous ink system, so that I am not always having to purchase small ink cartridges. There are a variety of these systems and places to purchase ink at scale, but here is a link to give you an idea in case you print. https://www.garmentprinterink.com/products/spectra-ciss-bulk-ink-system-with-ink-cartridges?variant=29240498683956¤cy=USD&utm_campaign=gs-2019-11-07&utm_source=google&utm_medium=smart_campaign&gclid=EAIaIQobChMI8JrVzcnP6QIVwZJbCh0-2gZ3EAQYASABEgLfnPD_BwE
Shipping: Endicia.com OR ShippingEasy.com (I pay monthly fees, but totally worth it and cheaper than the post office.)
- Dymo Thermal Printer (for shipping labels) https://www.amazon.com/DYMO-LabelWriter-Thermal-Printer-1752264/dp/B0027JBLV4/ref=sr_1_3?crid=MDQW6OQL2MJD&dchild=1&keywords=dymo+printer&qid=1590428584&sprefix=dymo%2Caps%2C183&sr=8-3
- Shipping Labels: https://www.amazon.com/Rolls-Labels-Compatible-1744907-LabelWriter/dp/B078SQKJM8/ref=sxin_7_ac_d_rm?ac_md=2-2-ZHltbyBwcmludGVyIGxhYmVscyA0eDY%3D-ac_d_rm&cv_ct_cx=dymo+printer+labels&dchild=1&keywords=dymo+printer+labels&pd_rd_i=B078SQKJM8&pd_rd_r=da9dd792-fad8-43b3-a9ec-3f6fd3bc7b0d&pd_rd_w=JnCCJ&pd_rd_wg=YYpOv&pf_rd_p=a0516f22-66df-4efd-8b9a-279a864d1512&pf_rd_r=VY3MQK7TDXY4G4QXWZHX&psc=1&qid=1590428654&sr=1-3-12d4272d-8adb-4121-8624-135149aa9081
- Shipping Tubes: https://www.uline.com/Product/Detail/S-6241/Kraft-Mailing-Tubes/Kraft-Mailing-Tubes-with-End-Caps-3-x-56-125-thick
- Clear Bags for Prints: Uline.com
Outsourcing: We print most things in-house aka out of our garage workshop. However, we do need help printing on other materials or really large prints. Here are some places to look at.
- We use Printful.com weekly.
- Here is a list of 31 Print on Demand sites (including Printful) for you to decide which is right for you. https://www.ecommerceceo.com/best-print-on-demand-sites/