October 6, 2012 at 8:41 PM
no you don't have to federally, but check your local area tax rules :)
October 7, 2012 at 10:28 AM
Visit IRS.gov and your city, county, and state sites for find out specifically. Each area is different, don't ask just anyone for tax advice - you may SERIOUSLY regret it down the road to find out you were making money illegally and have to pay fines.
Also, skip Etsy and open up on Storenvy.com. It's a free to use site that is totally customizable with unlimited listings. :)