You must register with the Idaho Secretary of State’s office in order to receive a business license in the state of Idaho. Forms must be filled out, fees must be paid, and details about your company, like its name and address, must be provided. After obtaining your business license, you must additionally apply for a seller’s permit.
You are able to charge sales tax on the goods you sell if you have a seller’s permission, often known as a sales tax permit. The majority of tangible personal property, including handcrafted goods sold on Etsy, is subject to sales tax in Idaho. You need to register with the Idaho State Tax Commission in order to get a seller’s permit.
It’s crucial to remember that self-employed people must pay their own taxes in addition to obtaining a business license and seller’s licence. This implies that you must file an annual tax return and settle any tax debt. However, if you work for yourself, you might be able to claim some business expenses as a tax deduction, which could lower your overall tax liability.
The most prevalent type of self-employment is that of the sole owner, who owns and runs their own company. You are solely liable as a sole proprietor for all facets of your firm, including any obligations and taxes due. This is distinct from being self-employed, which only means that you don’t have an employer and work for yourself.
In conclusion, you must obtain a seller’s permit and a business license in order to sell on Etsy in Idaho. Additionally, you’ll be in charge of paying your own taxes as a self-employed person and you might be eligible to write off some business expenses. It might be beneficial to conduct your business successfully and stay clear of any potential legal or tax concerns by being aware of the legal and financial requirements for selling on Etsy.