Hi Folks ~ I went to my bank this morning to see about opening a DBA account for my Etsy shop. I have to have a fictitious name certificate before I can open an account, which costs $50, I just checked online. There will be a bank fee of $17 a mo. unless I have a certain amount that will stay in the account. SIGH!
To get a sales tax # doesn’t sound hard, but I think I will have to get the certificate mentioned above first.
From what I can figure out from online is that I also need a business license even for an online store. I will be sole proprietor.
My mind is reeling! I wish I had someone to talk with and walk me through this. I am not good at figuring out this kind of stuff. DH was, I’m ‘FlowerLady’, he took care of all of geek/business stuff while I took care of home, gardens, worked for 17 years at my job, and create my needleworks.
I’m wondering if it is even worth it.
I’ll take a break again from thinking about all of this, in other words, procrastinate some more, and pray about it too.
I did read on Etsy that in order to do business there, you really do need the business license and the tax #. I think there are a lot of sellers who don’t realize this. We are led to believe we can just start selling on Etsy.
Other than that, I am thankful today for, flowers, shade, a.c. food to eat, a nice bed to nap/sleep in, bills are paid and my feet aren’t hurting.
This is a short little post to vent my somewhat frustrated feelings.
I’d appreciate prayers and any feedback with this issue. ~ FlowerLady
***
Indecision becomes decision with time.
Author Unknown
Do not plant your dreams in the field of indecision,
where nothing ever grows but the weeds of "what-if."
Dodinsky
Everything is something you decide to do,
and there is nothing you have to do.
Denis Waitley
***
I love to create! Right now I’ve been working on things that are to give to others rather than things that are for sale. This was the last piece I created for my Etsy shop and it is sitting, waiting for my shop to open up again.
14 comments:
Oh, that is the loveliest of hearts, dear Lorraine! Don't be discouraged.....take it one step at a time. Save up for that bank fee and take the plunge. The business license shouldn't cost much and that gives you a tax ID. They send you quarterly statements. If you make under a certain amount of money, you can file under 'hobby business' and not pay taxes. Here in WA state it is $500 a year. Otherwise, just keep records of each transaction for your taxes in a little book and put that money aside to pay the taxes. It won't be that much. You can do it! Your hearts are so pretty....hugs xo Karen
Sorry,I am not the person you need to talk to when it comes to this kind of advice.I hope you can work your way through these roadblocks.I do understand the missing your dear husband.I miss mine all the time,but somehow we must cary on.
Hugs
I don't know anything about Etsy, I hope some helpful comments are made by folks who have Etsy shops. Your lace and pearl hearts are darling and I hope you can find a way to open that shop again.
I have sold on Etsy for quite a few years and even ran an Etsy store for the business I used to work for. Please check this out: Easy Peasy: Sole Proprietorships https://www.etsy.com/seller-handbook/article/law-101-a-guide-to-setting-up-your/22726776478
You do NOT have to have anything other than a sales tax license which you can get just using your name, not a business name, unless FL is extremely different from TX. You don't need a separate bank account because the sales tax license is in your personal name, not a business name. If you have more questions I would contact someone in the forums to see if they would help guide you through.
The only thing I can see that may be different for you from me is the state laws you may be dealing with. Otherwise it sounds to me like people are just trying to get money out of you for things you don't need. Etsy does not even provide 1099 forms unless you sell over a certain amount AND over a certain number of items per year, a place which most sellers never reach.
Please don't stress over it, it's not worth it.
Are there any credit unions you can join, Rainey? They usually don't have those high fees for accounts. If not, I guess you'd have to figure out if $17 X 12 months plus the $50 ($254) is worth the trouble. You have to be wary of banks, they have all sorts of fees; fees when your account dips below a certain amount, then fees for not paying the penalty quickly enough (because you hadn't received the notice), then they withdraw that penalty and your account drops lower and they charge you a fee again! That's what happened to one of my bank accounts. A five dollar purchase ended up costing me over two hundred dollars in fees. That's when I quit banking there and went strictly with a credit union. Hopefully, you'll find someone with a business to help you out.
Hugs
Jane
Sounds like you should look into the suggestion by Ladyhawthorn. This is an absolutely beautiful heart. Sure wish you could find a great craft show to enter and sell everything you have!!
xx, Carol
It's only worth it if you make a lot of money. I have a DBA business account but I wished I had just had all my clients pay me by name only and not to the business. I can easily keep business income separate from other income. For you it might be different since you have an online store. I guess you don't have your name on the Etsy site? Maybe have it go to your name? Then I'd think you could use your regular account. For us in our county we only need a business license if we make over $3000 a year. The fee is $30. Florida will of course be different than Tennessee. I wish you luck!
Your heart is a work of art.
You just need the sales tax license, that is all, and it only pertains to sales in Florida, not other states. As long as you keep track, as in simple records, you don't need a different back account. Lady Hawthorne is right...a simple accounting book for record keeping can be found at an Office Max or Staples store...just keep track there and there's no need for a different bank account, business name, nada. :)
Hi Lorraine, your heart is gorgeous. So delicate and I love the crocheted edging.
As for etsy, I've had a tax id number for years which simply means you have to charge sales tax for your area when selling something to someone within the state. It does not apply outside your state. When you set this up with etsy, they don't even ask for the id number. You just elect to charge sales tax. YOu can also use that number to save sales tax on supplies you purchase. Keep all receipts for filing at the end of the year.
For a business name, each state can be different but I went to the county offices, filled out a form with my sole proprietorship name, paid about 25 dollars and it's good for 10 years. I've had to renew but that is done just the same.
You then use that name or your sir name to file for a tax id. You have to get the DBA first if you want to have a business name otherwise, collecting tax under your own name is fine.
Your state will send you a tax filing letter every 3 months to fill out and send in the sales tax you collected. It can also be done on line and paid through paypal if you have collected tax for your state. If not, it is simply zero for that quarter.
On etsy the best area to find answers is to go to your account settings at the top of your shop under the You area. Click on account settings and then you will see across the top, taxpayer id and more icons to choose from. Here they explain exactly what happens and about filing for taxes etc.
Etsy will only send you a 1099 if you have had 200 sales or 20 thousand dollars in sales through direct checkout only for the year.
As far as banking goes, you can use your personal bank account for direct checkout with etsy. If you are a bigger business then you might consider a business account with the bank, if not, why pay all the fees!!~
It really is not as scary as it sounds and if you need more help, I am glad to walk you through this process. I've been on etsy for 10 years and it really is not difficult to set up.
People get tax id for sales tax, mixed up with a business licence which is not the same thing. A business licence is either your SS# or and EIN which does have to be used to open a business bank account. I don't think you need to worry at all about that.
You don't even have to give etsy your social security number to charge sales tax.
Paypal can be your business account with your DBA and so forth. I've had mine this way for 17 years and it works great along with direct checkout on etsy.
I know I have bombarded you with so much info so I will end by just saying. Don't be discouraged, it is not complicated at all.
List, sell, keep your totals and file at the end of the year. That's it!!
Have a great weekend. Blessings xoxo
Wondering if there is a Small Business Administration office or contact in your area? Perhaps the local Library could connect you with one. They might be able to help you through the maze.
It just seems like one can never get ahead doesn't it! I wanted to sell some of my aprons at the Farmers' Market, through my daughters, but they would have to charge sales tax and probably go through a lot of red tape such as you're facing, so I just let the thought go. If you decide to "go for it" I'm wishing you the best of luck.
The details would certainly discourage me! From the comments though, it appears it CAN be done. I'm sure you'll make a good decision. Praying for you as I type this out.
Hello sweet friend! Ah, what a beautiful heart! I love seeing your creations as they are all lovely, but this one is extra lovely.
You have gotten ome wonderful words of wisdom from your blogging friends about Etsy and I hope their advice has helped. Celestina was very informative.
Hugs to you!
That lacy heart is lovely.
Of course, I can only speak from being a resident in North Carolina, not Florida. I got a tax # from the NCDept. of Revenue. It is free to get one. They send me a booklet and envelopes so I can pay my taxes to them for the wares I sell. But I'm charging the taxes, so I'm only transferring that money from the customer to the state gov't.
I sell at a farmers' market, and I don't have to have a business license in order to do so. The man who owns the parking lot that we set up in lets us do it for free, and he doesn't require anything of us. I imagine it's just Etsy. If you sold elsewhere -- at a local market or fair, or even if you set up a shop right there in your home -- I wonder whether you'd have to have a business license. I mean ... is it an Etsy requirement, or is it a requirement from Florida?
Your other option would be to set up your own website (or maybe you already have one?) and sell from there, drumming up business here on your blog, and setting up a facebook page for your business too, and working hard to spread the word about it among friends far and near.
Good luck!
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