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  1. #1
    Newbie
    Join Date
    November 24th, 2008
    Posts
    29
    Business Question
    Hey guys,

    I'm not sure if this is the best place to ask this question or not, but here it goes. If you regularly sell items online that you purchased for the retail price, NOT wholesale, and you sell them for more than the retail price you bought them for, should that be considered a taxable business that should be registered as a business, or not? I was just wondering because I see this happen a lot on eBay and other places alike.

    Thanks a bunch,
    Jason

  2. #2
    ABW Ambassador jodyq's Avatar
    Join Date
    August 28th, 2008
    Location
    Melbourne, Florida
    Posts
    660
    Usually if you make over $600 in a calander year you gotta pay up. But that could be more or less in your city and state! Check your local city and state guidelines or talk and get a consultation from a accountant for more info about your states guidelines!
    Wear Short Sleeves!!! Support the right to bare arms!

  3. #3
    Banned
    Join Date
    February 7th, 2006
    Posts
    118
    Disclaimer: I am not an accountant. You should definitely speak with a business accountant regarding any accounting/tax issues. Also, you should speak with a business attorney when considering your business model.

    Now, regarding your question; the income you recieve from what you are doing is definitely taxable if it is at least $400. This income would be reported on a 1040Form with a ScheduleC (profit or loss from business) and would be subject to self-employment tax which is about 15%. There may be state/local laws that apply to this. Speak with someone at your local City Hall or Courhouse and they should be able to tell you what you need to know.

    I do not know what you mean by "registering as a business". If you intend to do business under a name other than your own, you need to file a DBA (doing business as) form or a "fictitous name statement" with your County Clerck. I would not think that you would be required to do this for the type of business you are describnig, however, there are certain benefits to doing this such as being able to have a business account at your bank.

    As stated above and in an earlier post, your state/local laws may vary concerning these issues and others. Your best bet is to spend a few dollars and speak with an accountant. For more information, visit the IRS's site and look through the business tax section.

    Best of luck in business.

  4. #4
    Newbie
    Join Date
    November 24th, 2008
    Posts
    29
    Ok, thanks a bunch guys for that info!

    Thanks again,
    Jason

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