When you take payment through PayPal, it is a PayPal transaction - not a Chipboard transaction. Expect PayPal to issue some guidance. My concern is whether PayPal will treat friends/family payments as income to be reported to the IRS.

As the article mentions, having reported sales does not mean it will be taxable. It will mean, though, that you have to account to the IRS for it to show it is not taxable (or account for the basis and expenses to justify deductions from the sales price).