New business: what taxes do I pay?

New Member
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I am not a sole proprietorship or a registered business in any way. I make jewelry from my home in Minnesota, US, and have previously sold it through instagram stories, but I am interested in having a website platform. My expected income from jewelry sales will be $1200 this year. what taxes do I need to collect? who do I pay that to? what is tha most basic formula for collecting taxes on shopify?

Shopify Staff
Shopify Staff
1013 116 157

Hey, @graymoonarts. Welcome to the Community!


That’s great to hear you’re interested in creating a business from your jewelry making hobby. Creating an online store is the first step to take, and so I recommend checking out this guide on How to Start a Jewelry Making Business. You can even continue to sell on Instagram through product tagging and Instagram Shopping by connecting your Shopify store to your Instagram account. Feel free to create your Shopify account using the 14-day free trial, if you’d like to take a look at the platform and become familiar with how everything works.


In regards to your tax questions, those would best be answered by a tax professional familiar with your jurisdiction. They’ll be able to inform you of what’s required to be collected, claimed and how to submit it all properly. 


Once you have the information needed, sales taxes can be set up within your Shopify admin so that they are automatically collected for each customer order. There are Help Docs for the General set up steps and tax reports, as well for US Taxes specifically, which goes over Shopify’s default settings, how to set everything up, or make changes to the amount being collected, if needed. 


If you would like a hand with enabling your tax settings, building your store or just want to chat about your business, support is available 24/7 via live chat, email or phone callback through the Shopify Help Center. Reach out any time.


Best of luck!

Helen | Social Care @ Shopify 
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