I want to open an online store and I have tax questions.?

Question

I am wanting to open an online store with a certain home made craft and I wanted to know, what information do I need as far as taxes? Do I have to file only if I make a certain income? I live in California if that makes any difference to the answer.

Answer 1

CA specific issues:

CA State Board Of Equalization
Resale license ( Sales Tax) annual filer

CA Franchise Tax Board
State Income tax Issues Does not always follow Federal
rules.

Local City
May require a business license for home business. (LA
audits income tax returns to find non reporting home
bossiness to collect the fees)

Each has a web site with all information and application requirements & forms.

Answer 2

You would be treated as a small business and you report all income and expenses for your business. There are separate forms to use and I highly recommend that you try to get some education about tax reporting. You can go your local IRS office and get a Schedule C plus the Instructions. Also get the following forms: 1040, Schedule SE (Self-Employed), 8829 (Expense for Business Use of Your Home) to name a few. This is only federal forms. You probably need to go your State Revenue Office as well. You can contact your Small Business Administration (SBA) for free info. Consider to take a tax class at your local community college (you do not have to be degree seeking) and also consider on taking some business classes. Good Luck

Answer 3

1. This will be your self employment income. You must file return if your self-employment income is $400 or more. Your self-employed income is subject to self employment tax at 15.3%. For this, with your Form 1040, you attach Form 1040 Schedule SE.

2. With your tax return you will also file Schedule C (Form 1040): Profit and Loss from Business (Sole Proprietorship). You can deduct your business related expenses on schedule C. On your net income from self-employment (that is from schedule C) you pay 15.3% self employment taxes.

Answer 4

in case you want to cost sales tax in the forty 5 states that levy a sales tax, you may truly try this. seem up each and each state's branch of gross sales. in spite of the incontrovertible fact that, you're in straightforward terms required to collect sales tax in states that your corporation has a actual presence. A actual presence is defined as touch with a state the place you have truly worker, a PO container, a telephone type, a nil.33 occasion consultant, and so on. seem up Quill vs North Dakota for extra advice.

Answer 5

Yes, you only have to file if you make a certain amount, but that amount is quite low ($400) since you will be self-employed.

Answer 6

Contact an SBA SCORE associate. They can help. They are retired professionals that offer free advice.