LLC vs Sole Proprietorship For Your Etsy Business - Which One Is Right For You?

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  • Опубликовано: 7 янв 2025

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  • @CassiyJohnson
    @CassiyJohnson  2 года назад +2

    For a limited time, 20% off Tailor Brands Plans use code:cassiyjohnson20
    tailorbrands.go2cloud.org/aff_c?offer_id=15&aff_id=3845&aff_sub=cassiyjohnson20
    *Not valid on LLC

  • @_stxntxn_
    @_stxntxn_ 2 года назад +16

    Thanks for sharing about this! I've been wanting to make and sell t-shirts but there's so much to it: figure out printify/squarespace/etc, form an LLC to be safe, obtain a seller's permit, get a business bank account -- it feels like a lot. It's doable, but it's more time and work than I thought

    • @CassiyJohnson
      @CassiyJohnson  2 года назад +69

      You are definitely making it a lot more complicated than it needs to be in the beginning. You can get started with your Social Security number and a personal bank account at first. Then make sure it's something that you enjoy doing and then can do those others steps slowly along the way as you decide this business is for you. You will likely find a new excuse not to start every single day. My best recommendation is to literally START TODAY. Go open your Etsy shop, go open your Printify account and connect the two things. Then make one design and list it for sale! Focus on Progress over perfection and figure it out as you go. You are never going to "be ready". That's not what being an entrepreneur feels like. So just get out there, Test, Fail, Learn, Repeat!

    • @efloresnica
      @efloresnica 2 года назад +4

      Awesome advice!!! Thank you for taking the time to share your knowledge and experience.

    • @Chocoglo
      @Chocoglo Год назад

      Hello Cassiy, if I decide to start today with just a social, do you know if I am still able to write off deductions such as fees/mock-ups if I file along with my regular taxes? Or if I don’t make more than $600, can I still write off the loss?

    • @Terry-vc5gp
      @Terry-vc5gp 5 месяцев назад

      Thank you so much for the inspiration @Cassiy Johnson ❤

  • @annewerner1298
    @annewerner1298 Год назад +4

    Enjoy your videos. My main problem is trying to get a business bank account. I'm a sole proprietor and I want to keep my business finances seperate from my personal finances, but the banks all want pretty much the same documents, Proof of business/business license, EIN number, a business license where I live is close to $100.00. Nobody I talked to wants to acknowledge this or talk about it in detail. Everybody talks about opening an Etsy shop, but I can't move forward till I have these things in place

    • @keniaslorzano-qx5ed
      @keniaslorzano-qx5ed 7 месяцев назад

      You should open an LLC, the payment is $370 (Well it depends on which option is easier for you) with a Agency that makes sure all your documents are in order. There are many agencies like Taylor Brands that are in charge of providing you with all the documents.

  • @handmadesandmore
    @handmadesandmore 2 года назад +5

    Thanks for this video. I currently have an LLC, but have my Etsy shop set up as a sole proprietor. After watching this video, I believe I'll be switching it...the possibility of getting sued is scary. YIKES! You explained it very well!

    • @CassiyJohnson
      @CassiyJohnson  2 года назад

      You're welcome!! So glad you gained some helpful info!! :)

    • @cedricclifton408
      @cedricclifton408 Год назад +1

      With you already having an LLC does that mean your Etsy shop falls underneath that or you have to create a new LLC separate from your already existing one?

  • @jag5798
    @jag5798 Год назад +1

    I have 1 LLC and I did a fictitious name under that LLC as my umbrella. I saved $$ on that and the renewal has a longer period than the LLC, which is every year in FL.

  • @TimelessTunesRewind
    @TimelessTunesRewind Год назад +3

    Does my LLc need to be that same as my shop name?

  • @llane375
    @llane375 2 года назад +2

    I love these videos so much I was trying to watch this at work today!!!

  • @followmesky
    @followmesky Год назад +2

    correct me if I'm wrong but if you're just starting, it's best to wait until you reach over 12k a year as anything under is not necessarily taxable. It would be considered a hobby or such.

  • @surgicaltechcrafter2169
    @surgicaltechcrafter2169 Год назад +2

    Thank you fellow Michigander.

    • @CassiyJohnson
      @CassiyJohnson  Год назад

      You’re so welcome! Good luck this weekend with the snow ❄️

  • @catalin5263
    @catalin5263 2 года назад +2

    Hi Cassiy! I know the question is not related to the topic presented in the video, but usually what are the best selling colors for POD and what colors do you use to sell?
    Thanks a lot 🧡

    • @CassiyJohnson
      @CassiyJohnson  2 года назад +8

      For t-shirts i use the Bella 3001 and I sell mostly Heather Peach, Heather Mauve, Maroon, Black, White and Athletic Heather!

  • @concerned778
    @concerned778 Год назад +2

    thank you for your video. I already have an LLC, but was hesitant to use it. It's my first business and all my designs are my original own design prints. so how do I protect my designs? is it already protected without LLC or should I use my LLC? I am a bit confused. I would appreciate any help or insight

  • @deenalatello6245
    @deenalatello6245 2 года назад +4

    Thanks, Cassiy! How do you know when you will have to pay quarterly taxes? Will Etsy notify you or is it a revenue threshold that you have to be aware of? Thanks!

    • @CassiyJohnson
      @CassiyJohnson  2 года назад +1

      Hey definitely check out my taxes video if you haven’t yet! It’s in the description. It’s once you will owe over $1000 in taxes. Etsy does not let you know, you need to track this. I just waited until tax time and ended up not having to pay a fee for some reason but my CPA said sometimes there is a fee for not paying quarterly taxes at that point. Feel free to reach out to a CPA in your state just in case that’s Michigan specific

  • @michaelcunningham9605
    @michaelcunningham9605 2 месяца назад

    When setting up your Etsy account does your Etsy store have to be the same name as the business name you registered with IRS?

  • @corinnaneufeld5772
    @corinnaneufeld5772 2 года назад +1

    Thanks Cassiy!

  • @LoStone1981
    @LoStone1981 4 месяца назад

    Super helpful. Thanks!

  • @Kitcatmom
    @Kitcatmom 8 месяцев назад

    Hey Cassiy! Curious if product liability insurance should be purchased for print on demand? I’m unsure if there were an issue with a product, if liability would fall on the pod seller or the actual maker of the product that is printed on??

  • @shainalannaman4985
    @shainalannaman4985 Год назад +1

    Hi, I already have an LLC. Can I operate my Etsy shop under my LLC if my LLC and Etsy shop does not have the same name?

    • @Tywatch1
      @Tywatch1 Год назад

      Hi did you find out?

  • @lindavaldez2888
    @lindavaldez2888 Год назад +1

    Thank you for this video. I have one question, if using my social security as my tax id# , how do i go about getting a sellers permit if i want to buy wholesale? or do i even need a sellers permit?
    Thank you

    • @CassiyJohnson
      @CassiyJohnson  Год назад

      Sorry I have never done anything with wholesale so you'd have to look this up or consider talking to a lawyer or tax professional that may be able to answer this for you!

    • @lindavaldez2888
      @lindavaldez2888 Год назад

      @@CassiyJohnson THANK YOU SO MUCH FOR RESPONDING

  • @kimberlypicone1312
    @kimberlypicone1312 Год назад

    HI I already paid for the second plan on this website. I had a person call me and walk me through everything. But my question is about the business address. They want me to pay $39/mo for a virtual address and I feel like that's too much. Is there a less expensive option?

  • @rgilcin1
    @rgilcin1 2 года назад +2

    Another well explained patient video! Thank you. I tried making a video yesterday and saw how it looks a lot easier than it is .. at least for me .
    Maybe you could cover the topic I felt compelled to talk about. Yesterday I was uploading my Halloween designs and I I am sure was doing it inefficiently(another video lol) . My son was making fun of me and then boom I received an email expressing interest in one of my designs . I was so excited and felt the beginnings of validation from the doubters , when it became apparent that this person was using the way I came to find out to be the 419 scam . I was so let down and kicked in the stomach that I stopped all work and thought of even giving up. I wanted to notify Etsy and in try jag to do so came across an FAQ all about it. The first two lines that were used were identical to the example ETSY gave . I think it would be good to make your viewers aware that it’s out there and to beware.
    Thank you for all of the inspiration and information you provide !!

    • @KarlaZamudio
      @KarlaZamudio 2 года назад

      Oh yes, please do share. I've heard of scams but do not know of the ones that happen on Etsy.

    • @CassiyJohnson
      @CassiyJohnson  2 года назад +1

      I am going to be looking this up because I have never heard of scammers! I'm sure you aren't the only one to get them though, thanks for the comment!

    • @CeeCeeBold
      @CeeCeeBold 2 года назад

      Can you explain more about 419?

    • @northgirl77
      @northgirl77 2 месяца назад

      @@CassiyJohnsonif we have set up sole proprietor with 1 Etsy shop name do we have to open another sole proprietorship if we decide to open a different shop with different name?

  • @aqdasf.
    @aqdasf. 11 месяцев назад

    Is it possible to make multiple etsy shops under one US llc?

  • @melissap.9404
    @melissap.9404 11 месяцев назад +1

    Does Etsy allow you to change your shop info from your name as a soul proprietor to an LLC if you decide to switch?

    • @CassiyJohnson
      @CassiyJohnson  11 месяцев назад

      Yes you can change this at any time!

  • @heleneib257
    @heleneib257 Год назад +1

    What a great video!

  • @jasonryker8669
    @jasonryker8669 2 года назад

    Hi Cassiy, I purchased your spreadsheet and I thought there was a video explaining how to use it but I can't seem to find it. Could you give me a link for this? Thank you for your videos I am starting my own shop soon!

  • @lessismore8908
    @lessismore8908 2 года назад +2

    You have a Pod Etsy store & mock-up store. Did you need separate llc for each business?
    Thank you for your time!

    • @CassiyJohnson
      @CassiyJohnson  2 года назад +3

      No you can have one LLC for both businesses!

  • @kimberleeann14
    @kimberleeann14 2 года назад +1

    Please help. I can't find info anywhere. What to I put in the section that is asking for "document number" in the 'legal and tax information ' section.
    Thank you in advance!

    • @CassiyJohnson
      @CassiyJohnson  2 года назад

      I'm so sorry, I'm not sure exactly which part you are talking about, I'd recommend reaching out to their customer service for assistance!

  • @C2YPTO_STEVIE
    @C2YPTO_STEVIE 2 года назад +1

    I have an llc but am confused about being classified as a professional seller (trader) in the EU now. This is shown at the bottom of page in seller details. Does that mean I have to sell to EU, too?

    • @CassiyJohnson
      @CassiyJohnson  2 года назад

      So sorry I've never sold internationally so I can't help with that, I hope you found your answer though

  • @hersofterlife
    @hersofterlife 2 года назад +1

    Super helpful!!

    • @CassiyJohnson
      @CassiyJohnson  2 года назад

      Thanks Shannon, so glad you enjoyed it!

  • @Canakin19
    @Canakin19 2 года назад

    Hello Cassiy,thank you for your video..Can I ask a question I own a business with only I own its a sole propriegorship I think ? I mistakenly choosed business and cant change my business registration id..How must I change this I wrote etsy this issue and replied me ''your sheets doenst match with the information you sent us'' I am a newseller how can I fix this..? Maybe I can choose sole prop if the platform accepts

  • @yeneryilmazkalma
    @yeneryilmazkalma 2 года назад

    Hello Cassiy, thanx for the great info on your video. Is Single Memmber LLC an individual seller type or a business Seller type on Etsy? would be so glad if you answer it cause i couldn't find an exact answer to that.

  • @architecturehappy
    @architecturehappy 21 день назад

    Super helpful

  • @ZecuresWife
    @ZecuresWife Год назад +1

    Hey Cassiy! How do you handle setting up state taxes taxes that Etsy doesn’t collect for? This part of it has me so confused and a bit overwhelmed

    • @CassiyJohnson
      @CassiyJohnson  Год назад +1

      Etsy handles all of the sales taxes for you if that's what you are asking! As for income taxes, you just file your taxes at the end of the year and they will tell you what you owe to the state as well! It's not anything separate.

  • @FallingAsh
    @FallingAsh Год назад +2

    Does the name of your LLC have to match the name of your Etsy store?

    • @Tywatch1
      @Tywatch1 Год назад

      Hi did you find out?

  • @hannahservetter2298
    @hannahservetter2298 2 года назад +1

    Thank you for your amazing videos! So helpful. I have a trademark questions. If "Gatsbys" is trademarked for e-commerce store, then would Gatsbys Gallery be allowed? Or too risky haha

    • @CassiyJohnson
      @CassiyJohnson  2 года назад

      It should be trademarked for t-shirts to not be allowed, I'd say that's probably fine as the example you gave but I am not a lawyer or anything so I just use my best judgement.

  • @zazzbydody9938
    @zazzbydody9938 Год назад +1

    Hi dear, I watched alot of your videos and I love your content, actually I used your link to open a shop on etsy. Unfortunately since I am located in Qatar, I couldn't finish setting my shop. So I paid an agency to open an llc for foreigner, and it's under process. Today I come on a comment on reddit, that Etsy doesn't allow it 😔. I am not sure if the information is right or not, I looked everywhere and I couldn't find the right information. Can you please help 🙏 I'm going crazy 😭

    • @CassiyJohnson
      @CassiyJohnson  Год назад +1

      I am so sorry, I don’t have any experience with starting a shop from somewhere else! I would check other Reddit or Etsy pages to see if you can find out the right answer! Best of luck and just remember, Etsy isn’t the only option. You could always try Merch by Amazon or another side hustle all together like designing t-shirts on fiverr. There are always options!

  • @ashcakes220
    @ashcakes220 Год назад

    Hi Cassidy thank you for the video I am a Etsy shop owner I don’t make a steady income from Etsy yet but I would like to do comic cons and fair events in the future , and I don’t want my designs to get stolen so do you think a LLC would completely protect me ? Or do I need to get copyright with it?

  • @hashirshabir7334
    @hashirshabir7334 10 месяцев назад

    can i open an etsy account with non resident llc?

  • @mimi_nise
    @mimi_nise 2 года назад

    Do you recommend getting an EIN as a sole proprietor?

  • @breannecruz4436
    @breannecruz4436 Год назад

    Hello! I have been binging you’re videos for about two weeks and have begun the Etsy and printify process as well as designing sweatshirts! The legal and business side has kept me away from trying and I’m still scared I don’t know what I’m doing or getting myself into but your videos have helped me gain some confidence. I do have a question about switching to llc, I’m happy I don’t need one just yet. But when is a good time to switch? How much should I start making when it’s time to take step? Thank you so much in advance 😊

    • @CassiyJohnson
      @CassiyJohnson  Год назад +1

      I would do it after you feel more settled in your biz and are starting to make a consistent income! You can always talk to a CPA or an accountant to see what makes the most sense for your situation though

    • @breannecruz4436
      @breannecruz4436 Год назад

      Thank you so much for replying 😊

  • @AmiableCased
    @AmiableCased Год назад

    Thank you 😊

  • @courtneyranck-copher1229
    @courtneyranck-copher1229 2 года назад +1

    Hi Cassiy, I'm considering booking a 1 on 1 video call with you. How backed up are you?

    • @CassiyJohnson
      @CassiyJohnson  2 года назад

      Happy to help if you decide that is the right fit for you! Once you purchase the 1:1, you get directed to my calendar to schedule what time works best for you. I am booked for the rest of this week but I do have a few times next week open on Sunday evening, Monday throughout the day and next Wednesday morning if any of those times can work for you!

    • @courtneyranck-copher1229
      @courtneyranck-copher1229 2 года назад

      @@CassiyJohnson thank you!

  • @rcaunhyerc
    @rcaunhyerc 2 года назад +1

    Hi Cassiy, do you have separate business insurance?

    • @CassiyJohnson
      @CassiyJohnson  2 года назад

      No I do not have any business insurance

  • @lenocka1100
    @lenocka1100 2 года назад +1

    Thank you for video !
    Would be an existing LLC work which was created few years ago for a real estate purpose but that property doesn’t exist any more. ? LLC annual report is paid to The state every ywar

    • @CassiyJohnson
      @CassiyJohnson  2 года назад +1

      I couldn’t imagine why that wouldn’t work but you can always check with a CPA to make sure!

    • @lenocka1100
      @lenocka1100 2 года назад

      @@CassiyJohnson thank you
      Same for the Merch by Amazon right?

  • @theshadowknowz5900
    @theshadowknowz5900 2 года назад +1

    Thanks...

    • @CassiyJohnson
      @CassiyJohnson  2 года назад

      You're welcome! Thanks for watching!

  • @TonySmith-dv3yu
    @TonySmith-dv3yu 2 года назад +1

    Is it possible to start an Etsy account with EIN only?

    • @julianadieyi2888
      @julianadieyi2888 2 года назад

      I want to know this also.

    • @zazzbydody9938
      @zazzbydody9938 Год назад

      Hi, did you got an answer? I just paid an agency to open an llc for foreigner, since I couldn't finish setting my shop on Etsy, but today I saw a comment that Etsy doesn't allow foreign llc. Is that right? Please help 🙏 😢

  • @Caned5
    @Caned5 Год назад

    Questions tho..how is it that you can get sued, have your assets taken, if you dont have an llc? But you work for a POD "company"?

  • @SaludFormidable
    @SaludFormidable 2 года назад +1

    Thank you, I had no idea they existed. Its much cheaper than paying a lawyer to do it.

    • @CassiyJohnson
      @CassiyJohnson  2 года назад +1

      You're welcome, Felix! So glad this information was useful to you!