Keep your Etsy/crafts business income and expenses separate from your personal stuff

Many creative entrepreneurs and Etsy shop owners fail to separate their business income and expenses from their personal income and expenses. This is called “co-mingling of funds.” A good way to separate business income and expenses from personal income and expenses is to open a separate business bank account. Be sure to run all business income and expenses through the business bank account. The reason that you want to separate business from personal funds has to do with legal and tax purposes. First, when a business is organized as a limited liability company, corporation, or partnership, that business it is a separate legal entity from its owner or owners and it should have a separate bank account. Second, co-mingling of funds can bring up a lot of negative consequences in case of an IRS audit. On my next post I'll talk more about business income and business expenses.

For a free article "10 Things You Must Know About Taxes, Bookkeeping, and Business Licenses" and for free Excel worksheets just for Etsy shop owners and creative entrepreneurs visit my website.

Stop worrying. Save hours of research online. Check out these Tax, Business, Accounting and Bookkeeping PDF e-book guides written by a CPA and creative entrepreneur just like you. Available for instant download.

Is your Etsy or crafts business legal?

The process for making a business “legal” or obtaining a business license or permit can sometimes be confusing for Etsy shop owners and craftypreneurs. Here is what you must know.


You obtain a business license or permit from your state. This process is called “register to do business”. Rules vary from state to state. Some states require you to file an “assumed name” or “dba” if your business name is not the same as your name. You must check with your State’s “Secretary of State” office to determine what your state’s requirements are for registering to do business in the state. You can go to the IRS’s listing of state websites at  http://www.irs.gov/businesses/small/article/0,,id=99021,00.html to get the link to your state’s “Secretary of State website.” If you are unsure what to do you can call or e-mail your state's secretary of state office. You can also read information provided at MyCorporation.com.  This is an online service that will assist you with incorporating and forming a business for a fee.  Their website has a lot of free information that you can refer to.

You may be asking yourself, what about the IRS? Don’t you get a business permit or license from them? No, you don’t. You pay taxes to the IRS but you do not register to do business with the IRS. I'll cover that in the next post.

For a free article "10 Things You Must Know About Taxes, Bookkeeping, and Business Licenses" and for free Excel worksheets just for Etsy shop owners and creative entrepreneurs visit my website.

10 Things Every Creative Entrepreneur and Etsy Shop Owner Must Know About Taxes, Bookkeeping, and Business Licenses

I just wrote an article "10 Things You Must Know About Taxes, Bookkeeping, and Business Licenses" just for Etsy and crafts business owners who need help with taxes, bookkeeping, and business licenses. It is free for you to download from my website. Read this if you have an Etsy or crafts business or if you are thinking of starting one.

Tax Help For Etsy Sellers, Crafters, Indiepreneurs, and Creative Entrepeneurs

If you own an etsy shop, arts, design, or crafts business and need help with schedule C and getting ready for tax time - read this guide! I have just published my third e-book especially for creative entrepreneurs. This is a comprehensive tax guide to help you with your Etsy business or crafts, arts, design, or indie business. This ebook tax guide covers everything you need to know to get ready for tax time and tackle that dreaded Schedule C! Learn what is business income and expense. Learn what is deductible. Learn what records you need. You can read more about them at my website and download free worksheets - such as a simple bookkeeping and accounting worksheet, mileage log, inventory worksheet, and fixed assets worksheet. Don't ask for business advice in the forums anymore. Save yourself hours of research, frustrations, and headaches. Order my ebooks today!

New Website for Creative Entrepreneurs, Etsy Shop Owners, and Crafters

After 3 years my idea has finally developed into a website. Introducing MyCreativeCPA.com. A website specifically for creative entrepreneurs, crafters, artisans, artists, designers, indiepreneurs, and creative mompreneurs - anybody who sells crafts, arts, and designs. I have written a series of PDF e-book guides about business, tax, accounting, and bookkeeping topics specifically for you creative entrepreneurs. Do you sell crafts online? Are you an indie designer or crafter? Do you know what the IRS and state and local requirements are for engaging in a small business? These e-books are informative and easy to read and will provide you with everything you need to know to set up your business for legal and tax purposes, business, accounting, and tax topics. 

New Blog - Creative Biz*ology - Tax, Numbers, and Business Tips for Creative Entrepreneurs, Etsy Shop Owners, and Crafters

Introducing my brand new blog - Creative Biz*ology. The premier blog for providing valuable tax, accounting, bookkeeping, record keeping, and business resources and tips for creative entrepreneurs, Etsy shop owners, and crafters. Finally, information provided by a "CPA" (Certified Public Accountant) who is also a creative individual. When it comes to business matters, don't be afraid - be informed. Get your information from a reliable source.