sweetcharlotte asks a very good question in the forums:
Do you guys pay taxes (sales or income) on your Etsy sales? Just wondering what the criteria is? I guess each shop is different, but I figure that I pay sales tax on the materials (fabric, etc) so the end product shouldn't have tax...is this right?
She's gotten a lot of great responses to that question. If you were wondering something similar, you should definitely check out this forum thread!