Selling stuff on eBay I live in Houston HOW DO I DECLARE MYSELF A BUSINESS AND START PAYING TAXES?

Question

I need to know exactly what forms I must fill out and exactly what fees need to be paid, so I can do things legitimately via ebay. I am already established and am just now starting to make profits. Everytime I try to do research via the internet or the local Small Business Association, they all start off with the the same thing - "Make a business plan", "Apply for a loan". "I DON'T NEED A BUSINESS PLAN AND I DON'T NEED FINANCING FOR THE BUSINESS!!" With very low maintenance, I am just selling an inventory of items on the side, and don't want to get busted down the road for not paying taxes. I know every state is different, but like I said, I just need to be spoon fed, where I go what I fill out, and what fees I must pay. I have already decided I would probably want to be a LLC.

Answer 1

You have several things to think about. Regardless of whether you form a business entity, you must pay sales & use tax and federal income tax.
Forming an LLC MAY protect you somewhat against lawsuits, and may or may not affect your federal income taxes, but will not affect your sales & use tax. If you form an LLC, you must register with the Texas Secretary of State and file annual reports to stay in good standing. You probably will not owe franchise tax--you need a lot of income for that. The forms are on their website.
Whether you form an LLC or not, you must apply with the Comptroller for a sales & use tax permit. Depending on your revenues, you may file monthly or quarterly returns. You must report income & pay tax on all sales delivered to buyers within Texas. You must pay use tax on all items you purchased for business use IF you did not pay sales tax when you purchased the items.
Whether you form an LLC or not, you must pay federal income tax on your business income. If you form an LLC, you must file a business income tax return to report your income and expenses & make choices about how your income will be reflected on your personal taxes. If you do not form an LLC, you are a sole proprietor, and your income & expenses must be reported on a Schedule C with your form 1040. irs.gov has lots of publications on small business tax reporting. Read up on it. If you get too confused, you can hire an accountant to explain.
If you hire employees, there is LOTS MORE to deal with.

Answer 2

The Texas State government has a great web site that will help you with everything you need to know. However, I have been selling on Ebay for years and I find that people usually buy out of their own state in order to save sales tax, so you probably will not get any Texas buyers.

http://www.business.texasonline.com/?language=eng

Answer 3

You write in your question that you are going to buy something and then sell it to earn some money. BANG!! that is the definition of trading and any profits that you make are taxable, subject to other income and personal allowances. You must even register if it turns out that you make a loss, it is the intention that counts. A fine for not registering can be levied by HMRC. HMRC also claim to have a computer "tool" which can identify traders on ebay!! Also watch out for National Insurance!!!

Answer 4

I live in houston too, do you have any job openings?