posted on December 10, 2000 03:19:37 PM
I am wanting to start selling on E-bay about 4 or 5 auctions a week. The items I will be selling will range about $1,000-2,500 for each item.
I don't want to get into trouble with Uncle Sam so what is the best way to make sure I don't do anything wrong.
I was going to go in as a soul proprietor and set up one room in my appartment as an office with inventory and storage areas as well as a workstation for filing and processing orders and bills.
I was not going to get a business license of any kind and I'm an 100% sure that no sales will be in my same state.
Is this the wrong way to do things? I have an E-Bay rating of 59 with no Negatives so I feel confident about that, I just didn't want to get in trouble come tax time.
Also, I'd like to take credit cards but with all the troubles I keep hearing regarding 3rd party companies, PayPal, BillPoint and such...I'm wondering if its worth it...
With the value of my Items being over $1000 I think it's necessary yet I don't want any chargebacks where I the seller would have no retribution on my behalf.
Any info from any novice or professional sellers will be greatly appreciated!!
posted on December 10, 2000 03:36:29 PM
If you're anticipating selling $20K/month, you should be setting up a businesss plan, which includes meeting with a competent accountant or tax attorney so that s/he can ask YOU questions about your proposed biz. You probably don't know all the questions you need to ask yourself. Invest a few bucks in setting this up NOW. You'll find out the kind of documentation you'll need to save for tax purposes and how you can set up your biz for optimum tax benefits.
Do it now. Unless (and probably even if) you have a background in business (which from your questions it sounds like you don't - BTW it's sole proprietor, not "soul", you are risking some serious headaches later on, particularly when you're talking about a projected annual gross income of $240K.
posted on December 10, 2000 05:23:06 PM
Listen to Meya and HCQ. I've owned several businesses and a really good CPA can save you a lot more than they cost. I had a great one and never had a problem with the IRS.
I'd stay as far away from the third party payment services as possible if I were you. At least with a real merchant account, you have some measure of control over who sends you money. You can't decline a PayPal payment.
posted on December 10, 2000 07:04:18 PM
Thanks for the great input..I apologize for the "soul" term instead of "sole" I'm honestly smarter that it's appearing!
Thanks to those have have replied and keep it coming.
Any suggestions on Merchant accounts...I applied for one at Charge.com..
Again..any input is more than welcome and appreciated.
posted on December 10, 2000 07:22:09 PM
I have been with Novus for many years, and have never had trouble with them.. They own the Discover card, but make available Visa and MasterCard also.
Now as for charge backs, good luck. I have had two friends that had charge backs. The worse of the two did a Mall Show, about 190 miles from the home/business. When they were informed that the lady had changed her mine, it was up to them, to drive and pick up a large piece of furniture. She canceled the charge, but it was up to the merchant to retrieve their merchandise. So they had to make a 380 mle round trip.
Food for thought.
, you are risking some serious headaches later on, particularly when you're talking about a projected annual gross income of $240K.