Hello @AlyssaS02 , great questions! Let me see if I can help:
1) if I were to sell my art on a website like redbuddle, how would file my takes?
Income from selling your art will be considered "self-employment" income, and is claimed on your individual income tax return on Schedule C. TurboTax is set up completely to help you report and file with this kind of income!
2) How should I file takes if I want to make selling my art my main source of income?
As long as you are just an individual selling your art, you will continue to file the income and related expenses on Schedule C, as I mentioned above, whether it is your main source of income or a side business.
3) How does filing takes for a small business work?
Many small businesses, when owned by just one person, are considered "sole proprietorships," and file their taxes on Schedule C of their individual tax return, as I mentioned above. However, if you form a corporation, an LLC with multiple members, or a partnership, the business may be required to file its own tax return on a separate form, and/or send income documents to each owner to report on their own individual taxes.
4) how would you recommend starting a business?
As you are just getting started, from a tax perspective there is nothing wrong with continuing to run your business as a sole proprietor for the time being and reporting the income and expenses on your individual tax return. This is generally the simplest way for small business owners to report. As your business grows, you may want to look into incorporating, or forming an LLC.
I hope this helps you!
All my best,
Adam, EA
TurboTax Live Expert
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