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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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Do I report income from my websites as one or separately? 1

8 thoughts on “Do I report income from my websites as one or separately?”

  1. 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?

  2. 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

  3. 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?

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