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

About the Author

By , on Jul 16, 2012
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Leave Your Comment (8 Comments)

  1. Joshua P says:

    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?

  2. Jennifer says:

    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

  3. Jennifer says:

    and one more Question!

    What did you mean “Schedule C”?

  4. Pinyo says:

    You don’t have to. It is usually better to file a joint return.

  5. Jennifer says:

    You are being so kind and helpful – I really appreciate it.. I am also married – Should I file separately?

  6. Pinyo says:

    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

  7. 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?

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