Do I report income from my websites as one or separately?
Question
I really could use some simple guidance on how to approach my tax requirements in Texas! I currently own my primary store: at http://www.yarnhookers.com and 8 more at Etsy, Bonanza, Atomic Mall, CraftIsArt, Ecrater, Bluejay & Ravelry. I plan to open a store in any online selling community possible. My niche is making & selling Graph Patterns for Crochet – yes it can be done!
Anyway, I have been collecting sales tax since Jan/2012 – I am just now starting to gain popularity and invest in cheap advertisements. My biggest question is do I consider each store separately or as a whole? Please feel free to offer guidance and advise.. I am very nervous since I am new to the game but once I understand it – I know I will be fine..
Thanks!
Jennifer Greenfield
Owner/Designer
Yarn Hookers.com – Graph Patterns
Answer
Congratulations on your stores!
If you are not structured as a corporation, I would just report everything on your Schedule C. If you are incorporated and everything is operated under the corporation, you can just report them all together.
Pinyo
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Thanks for this information! I’ve been wondering the same thing. I had even considered hiring an accountant to keep track of my finances, but for the prices that I got in estimates I’m better off keeping all my information myself, and going to an accountant once a year to get help filing my taxes. Do you think it’s a good idea to take a tax course and educate myself a little about all of these things? Or is it just better with an accountant?
I had looked at it but I didn’t realize it was just a form.. Thank you so very much.. I will keep an eye here – very helpful blog
and one more Question!
What did you mean “Schedule C”?
It’s a tax form. Here it is again:
Schedule C is a supplemental form that you file with your 1040. It lets you report profit or loss from business – see: http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
You don’t have to. It is usually better to file a joint return.
You are being so kind and helpful – I really appreciate it.. I am also married – Should I file separately?
No problem!
If you’re a sole proprietor, then you can report all business income using Schedule C. You can use your SSN, but you can get a separate Tax ID if you want to.
Schedule C is a supplemental form that you file with your 1040. It lets you report profit or loss from business – see: http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
First – thanks for such a quick reply!
My situation is: I am a sole proprietor under a legal DBA but do not have a Tax ID # just yet.. Does this help?
BTW – I am not sure what a “Schedule C” is?