I have been selling a bit on Etsy the last couple of years. Sales under 10K/year so nothing major. I will certainly seek out local advice from a business and tax pro in my area, but generally speaking, what do those of you who have a similar side hustle do to minimize your tax liability? I deduct my basic expenses such as Etsy fees and advertising as well as shipping costs and supplies and report my net profit as on taxes, but haven’t done much more than that. My printers and filament are all free with points and I use them for business as well as personal use. This year I am looking to grow a bit more, and may even have a couple of crowdfunding campaigns, So I might be looking to separate the business out as an LLC or something this year. Just looking to hear a bit of other people’s stories, journeys, and tips to grow successfully. Thanks all!
Yes, be sure to consult your legal advisor, tax professional, etc.; this is not intended to be legal advise, etc: There is no reason why your business should get filament, and the use of your models, for free. If you segregate your model designing and posting business, then the points will accrue to you personally. Then you can license the use of your models to your business. And you can sell the free filament that you got for points in your personal capacity to your business. This will create expenses for your business and lower your profitability, while at the same time providing income to you personally. You would still need to manage this for tax purposes on the personal side.
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