Should my new 1099 income be paid to my name or my Etsy business as a sole proprietor?

Hi! If you’re a sole proprietor (not an LLC/corp), the simplest, least-problem option is usually: have the company issue the 1099 using your legal name + your SSN (or your EIN if you have one), and they can list your Etsy shop name as the “business name” (DBA) if their form has a spot for it. For taxes, it generally makes no difference whether the 1099 shows your personal name or your shop name, because the IRS ties the income to the taxpayer ID number (SSN/EIN) and you’ll still report it on Schedule C either way.

Here’s the practical pros/cons:

1099 in your personal name (recommended for “keep it simple”)

• Pros: Lowest chance of a mismatch (name/TIN) that can trigger a “B‑notice” or backup withholding headaches. Clean and standard for sole props. Easiest if you don’t have a formal DBA registration.
• Cons: Feels less “business branded,” and some clients prefer paying “a business,” but it’s not actually required for a sole proprietor.

1099 in your business/shop name

• Pros: Looks more professional/consistent with an Etsy shop brand, and can match how you invoice.
• Cons: If the payer’s system treats your business name like a separate entity, it can increase the odds of name/TIN mismatch issues (especially if they put only the shop name but your TIN is your SSN). It can also get messy if you later change the shop name.

Taxes/deductions/liability (the parts people worry about)

• Deductions: No real change. You can still deduct ordinary and necessary business expenses on Schedule C (supplies, tools, mileage, part of phone/internet, home office if eligible, etc.) whether the 1099 says your name or your Etsy business name.
• How you report it: You’ll combine all your sole proprietorship income (Etsy + side gigs + this 1099 work) on the appropriate Schedule C(s). Many sellers use one Schedule C if it’s all part of one integrated business, but if you truly have separate lines of business, you may use more than one—this is more of a tax-prep decision than a 1099-name decision.
• Liability: The name on the 1099 doesn’t change liability protection. As a sole proprietor, it’s still “you” legally unless you form an LLC/corp and run things properly through it.

What to tell the company (simple script)

• “Please issue the 1099 to [Your Legal Name] using [SSN or EIN]. If there’s a business name field, you can put [Your Etsy shop/DBA name].”

If you want, tell me whether you have an EIN and whether your side gigs are all under the same “metalworking business” umbrella, and I can suggest the cleanest bookkeeping setup (categories/accounts) so your Etsy income and 1099 income stay easy to track at tax time.