Re: 1099k, under 200 but over 20k?
By adding an EIN on an account that is solid, you won't have to worry about the 200/$20,000 threshold. PayPal will only issue a 1099k and report to the IRS if you meet BOTH 200 items AND $20,000+ in sales.
Keep in mind also - a lot of people get this wrong - you are only obligated to pay taxes on YOUR PROFITS, not on your GROSS SALES! If you sold $100,000 worth of merchandise and your profit is 10% or $10,000 - then you only owe taxes on $10,000 - NOT on $100,000!
To figure your profit, you can deduct EVERYTHING, not just the cost of the merchandise. You can deduct postage, office supplies, etc. Anything that you need to MAKE that profit can be deducted. And a tax professional can find even more deductions for you. A lot of people think of them as being too expensive. But if you spend $300 or $400, they might be able to save you THOUSANDS OF DOLLARS in taxes, and it is perfectly legal and above board. Tax AVIODANCE is smart. Tax EVASION is not.
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