I cross stitch and Lot. I have more projects then places to either put them or have uses for them. If I were to sell a couple of projects a month and make only like 100 bucks or so do I have to file for a small business license or pay taxes on them.
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. :)