Tax question about reselling

[jwarner21]

What is the name of your state (only U.S. law)?
New York
I have a business we just opened in which we allow movie makers to showcase their projects and allow them the use of our merchant account.
Its now time to do the tax thing and I am wondering how to work this out legally.
I did take in over 35 thousand from several artists.
i only charged 25%
i should only be taxed on the 25% i took correct?
now.....
the question is how do i file?

 

[tranquility]

As a general proposition, yes. But, you need to see a tax professional (Because of the nature of the business, I'm going to go a little farther and say a CPA is appropriate.) this year to do proper reporting and write-up. You also need to see an attorney knowledgeable in "money service businesses" as you have many federal rules to follow, including the Patriot act.

You may or may not be in violation of your credit card agreement and you certainly have some liability issues so I'd make sure you see your insurance professional too.

By the way, you *need* to do these things to make sure you don't go to jail. Such things are how certain people make dirty money clean and you need to protect yourself to make sure that is not what is happening.