Originally Posted by Rose Ann
Mother always said there was never a dumb question - but, this may be one. I'm thinking of selling on e-bay and/or etsy. Do you need a tax ID to do this?
No, not necessarily and especially if you are just starting out.
If you exceed the amounts stated earlier in the thread ($20,000 and more than 200 payments), then you will probably be required to furnish your social security number and or EIN (tax ID for a business) for income tax purposes (in this case, eBay/etsy will report to the IRS how much you sold).
You need a tax ID when you are selling items that must be taxed where you live. You also need a tax ID if you want to buy supplies untaxed from wholesalers.
This article explains it better:
http://reviews.ebay.com/What-About-T...00000000854743