So If i charge my clients under PayPal, they will collect the tax for me?? and what should I do when the time comes to fill the tax form?
its doesn't work like that
the way it works lets say you from California you have federal tax and you have state tax
so lets say federal its 35% everywhere + your state tax 20%
so total in taxes you pay 55% of your income
so if you sold 20k$ worth of services whatever you selling no one really cares nor cops nor IRS not even FBI no one really give a F... of what you selling you can BS this how you wan when they ask wheres money from as no one will be checking this unless you got audited
you get audited when you think you smarter then IRS
anyway back to the story you have to pay 55% of your 20k sells
no paypal brakes it all down for you
20k in sells
5k in witraws to your bank (your profit)
10k in sending to others paypal (this its your business expanse)
5k in fees/disputes/charge-backs other bs (business expanses)
now your profit of 20k growth its only 5k now of this 5k you pay your 55% tax
and yes the best advice you got here its to find local PRO TAX guy who handles taxes for people either for small % of your amount or fixed rate the ones that asked fixed rate they the best way to go as its always cheaper
now you can talk to them even if you 10 years old because in USA you technically can legally work and file your own taxes when you 16+ years old
and last in a list its no one cares of how you make money as long its all documentation on papers by your bank and your bank approves those money
in your case its paypal if paypal don't block your account after you made first 3-5k then you have green light to make as much as you want and cops/fbi/cie/kgb/irs and others agency's will never ask you wheres money from
unless muhamed transfer you some dirty stuff ^^ but then no one protected from such stuff so good luck buddy hope I answered all your questions
so go make that cash now ))
