Hi everyone! I’m new here and have been trying to find information on the legalities of selling on here, I’m US based (Illinois) and wondered if anyone knows if we have to register as a business before selling, since Stripe is supposed to charge sales tax I’d assume we’d need a business tax id number but I haven’t been able to find this kind of info. If anyone has any information on this that would be a huge help, thanks!.
@paintandcrochet The stripe support/help center might be of some help, you should check that out as well
I can’t help with personal tax as it’s based on your individual circumstances. However I do know you can sign up to Stripe as individual or as a business
You are not charging sales tax, so you do not have to sign up to collect and and turn over sales tax, Stripe does that. I assume Stripe will send an 1099 on earnings for tax purposes, but you need to make more than $600 to be held to income taxes. I’m not positive, but if I remember, Illinois only requires you to register as a business for both sales tax and permits, which you do not need either…or if you have a ton of stock, you would pay property tax on equipment and stock, again, that probably doesn’t apply.
A tax ID number and a business registration would seperate your business liability from yourself, but there is little chance you will run into a situation in a home based crafting business where you would need to do that. If you owned a physical store and had employees and stock, that would be different.
Oh, and the tax ID number is for your employees to use for filing their taxes and for you to use to withhold and report payroll taxes, again, probably does not apply