I got myself in a little over myhead because I really didnt look at any tax information before I went ahead and got my EIN and business license but now that i Have had them for over a month I still am not doing business because the tax thing is alot more complicated than I thought and I also am a litle worried I messed up when I got my business License. I started the business to be an ISO for Capital Bankcard. Being a sole-proprietorship I know that the money the business makes is looked at as my income tax. And I know that I dont have to pay any other taxes on that because all the income is commission based. Right after I got it I decided I wanted to be a reseller for Vistaprint. And thats where i get confused. The way being a reseller for them works is i make a sale, the customer pays me, i pay vistaprint for the order and the sales tax. I keep what ever the customer pays over the prices i paid Vistaprint.So i really need to know how to handle the taxes involved in that money if there aer any. Does it work the same way as the merchant services and just count as my income tax or do i have to pay a sales tax since i was paid directly by the customer or is the sales tax that i pay to vista the only sales tax I have to pay. Thank you.
BizResearcher | Window Shopper |
8/31/2010 - 9:37 am
Be certain that you also pay quarterly estimated taxes on your income. If you don't, and you owe $1,000 or more in taxes, you will have to pay a penalty. A small business accountant can help you set up everything properly.
I would check with your state's department of revenue on the reseller sales taxes. You will pay self employment and income taxes on the profit from your business activities.
cwindom0117,
I would suggest speaking with a Small Business Accountant. After reading your question, it gets very confusing since you are commissioned and becoming a reseller. This is also a good practice since in regards to taxes, you want to make sure you get the advice from someone that is certified.
Take a look at Selecting a Small Business Accountant business article.
JimD
BizResearcher | Window Shopper | 8/31/2010 - 9:37 am
jbeidle | Contributor | 8/18/2010 - 11:07 am
JimD | Former Moderator | 8/11/2010 - 12:12 pm
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