Taxes for a Small Business
Staff
I have a store on Etsy and am supposed to collect sales tax for the state I live in. Are there any general recommendations for small business best tax practices?
(1) Answer
Guru
Hi Barclay,
Your question is a big one - there are so many things to consider and places to look. Here are some general thoughts:
1, Is your Etsy store a business or a hobby? There is a distinction for federal purposes (income tax) but also for state and local purposes (sales tax). You can get a sense of the differences here .
2, Many small business taxes are very state and local tax specific. Almost every state offers an overview of the taxes that you might be subject to on their web site. The names of the departments vary but try searching for "revenue" or "taxation" to find the applicable page in your state. In Pennsylvania, where I live and work, the URL is www.revenue.state.pa.us
3, The Small Business Administration is also a great resource for pointing you in the right direction. You can look it up online or find your local office.
4, Finally, in addition to web sites and blogs like mine written by tax pros, don't discount the value of the IRS web site. The site for the IRS offers a lot of good information on federal taxes. You can read or download forms and publications online - a great beginning publication is Pub 4591, Small Business Federal Tax Responsibilities.
I hope that helps! Good luck with your store!
Top FiDeals
