Legal Question in Business Law in Michigan

Hello! I am looking to start an online business with the possibility of *maybe* doing art fairs in the future. More so, I am wondering what the laws are for starting a solely ONLINE business. I live in Michigan and I am *thinking* about making jewelry & other accessories & selling it online through Etsy.com or Store Envy. Would I need to charge sales tax on all orders that ship throughout the world? Or just orders that go to a MI address? Or not at all? And if I need to charge sales tax, can I just start charging it? Or do I need to register with the state of MI to be able to charge it? Also, would I need to keep track of purchases for my shop (materials, shipping materials, printing supplies, and so on) to include on my taxes? It would only be me, no employees. I don't imagine I'd make very much money, it's more so of a hobby. Would I need to report income on my taxes if I only make $100? $200? Basically, is there an amount that if you make it, you have to report it and if you don't make it, you don't have to report it? I am just looking for all the advice I can get on starting a small online business while living in the state of Michigan. I just want to make sure I am doing everything legally. Thanks so much!


Asked on 3/14/13, 3:16 pm

1 Answer from Attorneys
Timothy Klisz Klisz Law Office, PLLC

Yes, you need a sales tax license from the state. They can inform you about charging sales tax to out of staters.

All income is reportable and you get to take deductions. Good luck!

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Answered on 3/15/13, 11:01 am


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