@candicealyse wrote:
Thank you so much, that clears up a lot of confusion! Since the shop is technically in my name, should I take the 1065 to get filed when I go do my individual taxes in 2023, along with the Schedule-K? Or is the 1065 something that needs to be filed prior to individual?
The partnership needs an EIN (employer identification number). The person who applies will have to provide their own name, address, and SSN to link to the EIN, but the EIN belongs to the partnership, not the person who applied. Try to think of the partnership as a separate entity, different and separate from each partner. The Etsy shop should be renamed to the partnership and all your payment partners should be updated to the new EIN.
The partnership tax return form 1065 is due each year on March 15, not April 15, and if you are late and don't get an extension, the late fee is about $200 per month per partner. When you prepare the 1065, you will also create K-1 statements for each partner showing their share of income and expenses, and each partner will include the K-1 on their personal tax return.
