Opening an Etsy shop – what should you keep in mind?
I have now read numerous answers here, about businesses and tax offices, etc.
I'd like to open an Etsy shop and accept commissions in the arts sector for a small fee. I don't expect to exceed the tax-free allowance of €520 per month. Do I still need to register as a small business?
After all, at this point I can't even say whether I'll take anything at all.
Furthermore, I think I read somewhere that artistic activities have a certain amount of freedom in this regard.
I'm a little overwhelmed by all the information. Can anyone shed some light on this?
Your description is too general for a realistic assessment
You write:
Please describe the purpose of your service.
You write:
Why do you expect to have no higher sales?
In order to be classified as commercial by the tax office, the intention is already to achieve profits.
This means: In any case, independent activity is subject to registration.
You write:
That’s why it’s important to know if you work artistically and why?
You write:
My personal opinion is:
ignorance offers plenty of space for speculation.
As complicated as it may seem, the thing is not actually.
Often a change of perspective helps.
The most important thing in the near future:
The tax office basically wants to know who earns money in Germany.
There is no difference between a business and a small business in terms of legal reporting requirements.
At the request and under certain conditions, the tax authority may waive the tax on sales.
As a self-employed person, you do not receive a fixed income.
In order to comply with the tax regulations of the small business organization, your annual turnover must not exceed EUR 22,000.
Tip:
You can earn as much as you want.
In addition to your self-employment, you can also have several mini jobs.
In your income statement, all revenues are added and the annual income is paid.
Tips:
Unknowledge creates uncertainty
We focus on restricting our proceeds to allowances.
In this context, a low income can lead to the no longer fulfilling the conditions for a reference to housing allowance.
Tips:
Why the small business operator regulation is not automatically the best regulation for small businesses.
What are small entrepreneurs or small entrepreneurs? And what tax regulations and special features apply to them?
These and other questions are answered here.
https://www.finanzamt.nrw.de/tax infos/company/ turnover tax/small entrepreneurs
Good to know:
Those who enjoy the joy of an activity do not have to pay taxes. Because hobby, as it is called the financial management, is not taxable.
According to definition, hobby or personal inclination is more likely. This means that enthusiasts belong to private life from the perspective of financial management. The consequence is that lovership remains in principle without tax importance.
More information can be found here:
https://www.vlh.de/wissen-service/tax-abc/loveria-was-ist-das-and-be-dafuer-steuer-faellig.html
Tips:
You get much more helpful answers when the circumstances and the purpose are clearly and unambiguously communicated.
This is the only way to explain the profitability of your business idea.
You need to register a trade as you intend to win with this shop. If you really make profit, it doesn’t matter.
It is true that artistic professions are among the free professions for which no commercial registration is required but must be reported to the tax office. However, the regulations are very strict. In your case, the shop is subject to the trade order, as you do not want to sell yourself created art, but take it into commission.
Thank you. 😊
You will log it out from the moment you sell goods with a profit plan.
(And just like that, you’re registering a business. Small business regulation is something else.)
You are best advised by the IHK in your area. There you will get all the information you need.
But isn’t business bigger than small business? 😅 or small business? Or is it the same? I am confused
If you’re confused, you better leave this with the business.
Huh? It’s not bad to be overwhelmed with the system. Just because I’m confused, I don’t make a retreat