LLC, Corporation, or SCorp

At $15,000 annual income, forming an LLC, corporation, or S corp for your Etsy business likely offers minimal tax advantages and adds complexity. The self-employment tax on your $15,000 profit will be significant regardless of your business structure. An LLC offers liability protection, but doesn't change how your business is taxed (likely as a sole proprietorship or disregarded entity for federal tax purposes). Corporations and S corps have more stringent compliance requirements, including corporate filings and potentially higher accounting costs. These costs may outweigh any potential tax savings at this income level. Consult with a tax professional to assess your specific situation, but at this income level, the additional costs and complexities generally outweigh the benefits.