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Want to sell shirts, do I need to open a business?

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zoom

Junior Member
Texas

Hello all,

I would like to sell some custom made T-shirts on my website. I am wondering if I can do this by reporting the income when I do my personal taxes, or would I have to open a business and get a sales tax form to make this legal?

I really don't want to go through the process of opening a new business and filing separate taxes just for a few shirt sales. Is there any way of going about this from a personal point?

Thanks!
 
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JETX

Senior Member
I would like to see some custom made T-shirts on my website.
There are lots of interesting websites that sell custom made t-shirts. If you want to see them on your site, simply get the owners permission to post them there.

I am wondering if I can do this by reporting the income when I do my personal taxes, or would I have to open a business and get a sales tax form to make this legal?
HUH??? Where would this 'income' be derived for simply showing other persons t-shirts on your site??
 

zoom

Junior Member
No, no... you are misunderstanding me. I must not have been clear in my initial post.

What I want to do is create some custom made T-shirts and then sell them on my website. I would make a profit by doing this.

Do I need to start a business for this or can I simply go around that somehow?

EDIT: I just realized I used the word "see" instead of "sell" in my first post. Sorry for the confusion.:p
 

JETX

Senior Member
Do I need to start a business for this or can I simply go around that somehow?
Of course you don't "need to start a business".
You can do anything you want.... as long as you are prepared to suffer the consequences of your actions (like failing to register a business, failure to pay taxes, etc.).
 

zoom

Junior Member
Thanks for that... gotta love the smart ass comments from some here.

I'm asking do I need to start a business if I just want to sell some t-shirts online, or can I go without opening a business? I'm trying to do this the legal way. I would report my income from this when I do my taxes. Is that good enough?

How do people on eBay go about their selling business? Are they doing it legally by selling on there, especially those that are selling constantly and making a living?
 

outonbail

Senior Member
It would all depend on how much money you will be making. But if you are going to put up all the money to purchase the silk screen equipment and shirt inventory, I would expect that you are planning to make enough money to cover you're expenses and make it worth you're time. Which would put you in business.
You can use you're own name and social security number for you're income tax purposes, but you will need to get a sellers permit and collect sales tax on all orders you sell and ship in you're same state. Sales tax and income tax are not the same thing. You can not collect and then pay the state their sales tax through you're personal income tax filings.
You need to keep track of and report all sales on a quarterly form which breaks down you're gross sales into several categories, one of which is taxable sales.
When you purchase shirts or any other inventory, you would be purchasing them for resale and not pay sales tax on them. If you sell them direct to the consumer, you would be required to charge and collect the applicable sales tax for sales in you're own state. Then you send in this quarterly form, along with a check for the sales tax you collected for the state.
And no, you can not just pay the sales tax on inventory when you purchase it and then avoid having to charge and collect it when you sell the items.
 

JETX

Senior Member
Thanks for that... gotta love the smart ass comments from some here.
Awww.... poor baby. Bet you got your poor little feeling hurt, huh??

Actually, my post was intended to show how stupid your entire thread is.

I'm asking do I need to start a business
What an idiot question!!
There are all kinds of businesses..... from those that are free (d/b/a, a/k/a, f/n/a, etc.) to those that could cost thousands of dollars (corporations).... all depending on your local (county or state laws).

Not only that, but there are lots of local and state requirements that apply to businesses. For example, if you plan on selling to persons or businesses located within your state or county, yes, you have to collect sales tax and yes, you have to have a tax ID number.

Are you going to have employees?? Then yes, you need an FEIN.

if I just want to sell some t-shirts online, or can I go without opening a business?
Save yourself a lot of grief and try using that feeble little mind that you have been using to hold your ears apart. Contact your local county clerk or business registrar, tell them the type of business you plan on having (RETAIL) and ask them if you need to be licensed. Don't be a friggin' lazy ass and expect others to do your work for you!!!
 

zoom

Junior Member
Haha, I think YOU got your little feelings hurt mate.

Anyways, I think I have a better idea now. I just wanted to get a feeling for this.

I will not be making a big profit out of this, maybe a few hundred bucks over the course of a year. I might buy about 30-50 shirts and see if I can sell them.

If I don't sell to customers in my state, Texas, do I still have to get a tax license?
 

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