I need help understanding whether or not I need to file for taxes as a brand new business

I need help understanding whether or not I need to file for taxes as a brand new business

Prettystarz4eve
Visitor
2 0 0

I am completely brand new to the point I do not have a registered business, have not sold anything, and have no understanding despite all the "help" shopify gives. I am a crafter who wants to sell the things she makes. I've gone through making my website - designing it, adding all my products, and putting in a temporary name (again not fully registered because I don't know how well I'll do and I don't want to go and pay tons of money on things that may not work out). All I have left to do is adding business payments, taxes, and shipping. 

 

The taxes is what has me stumped. As someone who has not made any sales and does not have an established customer base, I am not understanding if I need to set up taxes in the state that I am living in. As of right now, Shopify is telling me that "Based on your store’s data in Shopify, you have no sales tax liabilities." If I am understanding this correctly, this means I don't have to set up taxes on my products. 

 

So my question is this: do I have to worry about charging taxes on my products for a business that is completely brand new?

 

Replies 3 (3)

PaulNewton
Shopify Partner
7721 678 1619

💣Talk to an actual qualified accounting professional not randoms on the internet.

Hi @Prettystarz4eve 👋 shopify is a service they are NOT an accountant, lawyer , or doctor.

For questions about serious real life issues talk to an actual qualified professional for your area.

DO NOT hope some random person on the internet will tell you what you want to hear as a shortcut.

 

No ones opinion on a public forum can protect you from consequences just because they say you shouldn't have to do anything.

Contact paull.newton+shopifyforum@gmail.com for the solutions you need


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Prettystarz4eve
Visitor
2 0 0
Thank you for your reply!

I am not so much looking for a short cut as much as I trying to see how
other people handled this when they first started. I am looking to see if
other people had needed to set up the taxes side of their business first or
if they waited until they made a couple of sales.

Plus, I am also uncertain of how to even set it up. What I mean when I say
this is that if I were to sell to other states, would I need to set up
taxes there as well or if I need only to set them in my home state.

Again thank you for your reply though!
KelMurphy
Excursionist
22 0 5

Every state has different tax requirements, so you'll need to research based on where you live, how you're selling, and who you're selling to. There's a ton of info online, and your state's website should have most of what you need.

 

If you're not already selling on Etsy, it might be a good way to test the waters for selling your homemade goods online. They do take a significant cut in fees, but they also handle tax collection, which can make things easier come tax time. Many sellers start on platforms like Etsy and later transition to a Shopify storefront. Both have their pros and cons!

 

Wishing you lots of success on your journey! 💗