Sorry your browser is not supported!

You are using an outdated browser that does not support modern web technologies, in order to use this site please update to a new browser.

Browsers supported include Chrome, FireFox, Safari, Opera, Internet Explorer 10+ or Microsoft Edge.

Geek Culture / Questions about selling (in America)

Author
Message
Ultimate_H
16
Years of Service
User Offline
Joined: 11th Mar 2009
Location: A place that is neither here nor there
Posted: 15th May 2010 19:23
Link
So, my Google savvy skills have failed me this time, thus I've come to my friends here on TGC for answers.

Say I live in America, and want to start selling models/games online.

1) Are there any taxes I have to pay for selling the media?

2) Do I have to declare myself a company(or create one) in order to sell media?

those are the two main questions I can't seem to find the answers for.

I'm not asking how to sell the media, I've already gotten that figured out, I'm just more curious about what I have to do to be allowed(legally) to do it.

Any help would be greatly appreciated.
-H

Back to top
Profile PM Email Website
bitJericho
22
Years of Service
User Offline
Joined: 9th Oct 2002
Location: United States
Posted: 15th May 2010 21:50 Edited at: 15th May 2010 21:51
Link
Quote: "1) Are there any taxes I have to pay for selling the media?

2) Do I have to declare myself a company(or create one) in order to sell media?
"


Regarding digital media, I don't know. You should check your state tax webpage. For example, north dakota's is here:

http://www.nd.gov/tax/salesanduse/pubs/guide/index.html

You should check with your local SBA office, their website is here:

http://www.sba.gov/

They can answer both those questions for you.

I can answer number 2 though, you shouldn't need a license if you want to sell products under your own name (or with your name in the business name, like "John's Digital Media") as a sole proprietor. There are tax things you need to take care of. Running a business as a sole proprietor may not be best suited to you, so you should look at your other options. For example, starting up an LLP is only 25 bucks, and affords a lot more protection.

States may vary, so check your local state business info page.

Back to top
Profile PM Email Website
Jeku
Moderator
21
Years of Service
User Offline
Joined: 4th Jul 2003
Location: Vancouver, British Columbia, Canada
Posted: 15th May 2010 22:22
Link
It may also depend on how much you earn through this business. I know for me if I make $35k-50k from my business, I will have to get a business license and do all the proper steps.


Senior Web Developer - Nokia
Back to top
Profile PM Website
Ultimate_H
16
Years of Service
User Offline
Joined: 11th Mar 2009
Location: A place that is neither here nor there
Posted: 16th May 2010 07:12
Link
thanks for the response, but I think i should rephrase the second question.

can I sell models as a hobby, or would that incur self-employment taxation?

Much apprec.
-H

Back to top
Profile PM Email Website
bitJericho
22
Years of Service
User Offline
Joined: 9th Oct 2002
Location: United States
Posted: 17th May 2010 01:58
Link
I'm pretty sure there's a yearly income of 200 bucks or something, after which you have to claim. I recommend you verify that somewhere though, as I may be wrong.

Back to top
Profile PM Email Website
Virtual Nomad
Moderator
19
Years of Service
User Offline
Joined: 14th Dec 2005
Location: SF Bay Area, USA
Posted: 17th May 2010 03:17 Edited at: 17th May 2010 03:21
Link
from Wiki Answers:
Quote: "You must file a tax return if you had net earnings from self-employment of $400 or more"

and, please note that this is not meant to imply that you will have to pay taxes (due to, atleast, the Standard Deduction), just file the return.

also, your OP included:
Quote: "
Say I live in America...
"

as if this aspect was hypothetical(?). i think most assumed you do live in the US but if this isn't the case, you should clarify because the "answer" might be something different.

here: from the horse's mouth

Virtual Nomad @ California, USA
AMD Phenom™ X4 9750 Quad-Core @ 2.4 GHz . 8 GB PC2-6400 RAM
ATI Radeon HD 3650 @ 512 MB . Vista Home Premium 64 Bit
Back to top
Profile PM Website
Ultimate_H
16
Years of Service
User Offline
Joined: 11th Mar 2009
Location: A place that is neither here nor there
Posted: 17th May 2010 03:27
Link
Quote: "as if this aspect was hypothetical(?)"


Yes, I do live in America, hence the question pertaining to it. Didn't mean for it to come across confusing.

I guess my main question now is, how do i find out what kind of taxes I pay if I'm selling digital goods online. I live specifically in Michigan, and couldn't find the answer on the .gov website.

Any more help would be greatly appreciated.
-H

Back to top
Profile PM Email Website
bitJericho
22
Years of Service
User Offline
Joined: 9th Oct 2002
Location: United States
Posted: 17th May 2010 06:32
Link
Check with your local SBA. This information would take too long to research, unless you want to pay me for it

Back to top
Profile PM Email Website
Ultimate_H
16
Years of Service
User Offline
Joined: 11th Mar 2009
Location: A place that is neither here nor there
Posted: 17th May 2010 06:45
Link
Jerico@

Thanks for all of the advice, I'm definitely going to do more research, including sitting down with my dad's accountants (he owns his own business) and having a chat about all that kind of stuff, as well as talking to a couple other people who are pro's in that field.

Thanks again
-H

Back to top
Profile PM Email Website
Back to top

Login to post a reply

Server time is: 2025-05-24 11:10:31
Your offset time is: 2025-05-24 11:10:31