Dropshipping tax legitimate?

Sebelyakov · Feb 20, 2014

I'm thinking of registering in my state for a tax Id/ business license because I plan to make over 12k with my new dropshipping partner. My question is though, is dropshipping okay as an official business? What should I know about this? Thanks

carlikito · Feb 20, 2014

If you mean legal, then yes it is.

One of the issues you need to be careful is if you will be required to collect sales tax based on your state laws. Since you'll be basically reselling an item, the sales tax requirement will apply to you. Check you State laws to make sure.

Sebelyakov · Feb 20, 2014

carlikito said:
If you mean legal, then yes it is.

One of the issues you need to be careful is if you will be required to collect sales tax based on your state laws. Since you'll be basically reselling an item, the sales tax requirement will apply to you. Check you State laws to make sure.

So I know Ebay has a Sales Tax option, if my state had (hypothetically) 8% sales tax, would I just put 8% in the Ebay sales tax option? And its automatically deducted from my sales already?

Sorry if I'm not being easy to follow haha

Dropshipping tax legitimate?

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Sebelyakov

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