The best course of action for you may be to file for a sole proprietorship if you intend to launch a solo firm. The simplest and most direct way to run a firm by yourself is with this form of organizational structure. To make sure you are functioning lawfully, there are a few things you must accomplish before you can begin running your firm.
You must first register your company with the state. The Secretary of State’s office is where you may register your business name and get a business license in the majority of states, including Tennessee. You can do this in person at one of their locations or online through the state’s website. Make sure your company name is original and not being used by another company before registering it.
You might also need to apply for a seller’s permit and a sales tax permit in addition to registering your company name. You can legally sell products and services in Tennessee if you have a seller’s permit. Depending on the kind of business you operate and the goods you sell, a seller’s permit in Tennessee might cost anywhere between $15 and $100.
If you intend to charge customers for their sales tax on your goods or services, you must have a sales tax permit. A Tennessee sales tax permit is free, but depending on the specifics of your business, you might need to put down a security deposit. By registering with the Tennessee Department of Revenue, you can get a sales tax permit.
You might also need to disclose your revenue for tax purposes if you want to sell goods online, like through Etsy. Your tax return must include information about the self-employment income you get from selling goods on Etsy. To ensure that you pay the proper amount of taxes, it’s crucial to maintain precise records of all your sales and related expenses.
Sole proprietorship formation necessitates a number of actions to make sure that your company is running legally. Your company name must be registered, you must have a business license, and you might also need to get a seller’s licence and a sales tax permit. You must record your income for tax purposes if you intend to sell goods online. By taking these actions, you may launch your company with confidence and stay out of trouble with the law in the future.
Yes, you will want a tax ID number, commonly known as an Employer Identification Number (EIN) if you are selling on Etsy as a sole proprietor. This number is needed when filing taxes as a sole proprietor and is used to identify your business for tax purposes.
It is not stated in the article “Filing for a Sole Proprietorship: What You Need to Know” how much Etsy costs to sell. The company does, however, charge a $0.20 listing fee for each item and a 5% transaction fee on the sale price (including shipping fees), according to Etsy’s website. Depending on the buyer’s chosen payment method, there can also be processing fees.