how to do amazon dropshipping taxes

Paying TAXES as A Dropshipper how do I pay taxes for dropshipping now,before getting all this stuff

Tanner Planes

Updated on Jan 12,2023

Paying TAXES as A Dropshipper

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Paying TAXES as A Dropshipper

how do I pay taxes for dropshipping now,before getting all this stuff guys I'm,not a CPA you want actual professional,advice go find an accountant you know,near you,family accountant whatever you know you,can listen to what I'm saying but don't,take it as professional advice because,I'm not an accountant in one day I'm,having to pay tax on Monday April the,15th you know one thing is sort of dread,but there's two things that are,guaranteed in life when were born which,is taxes worn and death number two so,you know you just have to go through it,but I wish I learned about taxes and you,know business formations and things of,that nature,way earlier on and for just answer quick,a lot of people ask me should I start an,LLC corporation desk or you know what,should I do,don't worry about that stuff until you,have some momentum I would tell you this,for any business you know to start a,dropshipping store you can just start,you know as a sole proprietor with your,social security number and just do that,instead of having to worry about an LLC,and all this stuff because you know why,go through all the trouble and money to,start all these formations and then you,know you don't like drop shipping or you,don't you're not really into business,you just wasted that time and money when,you don't necessarily need it for here,in the United States you have to pay tax,based off of your profit so let's say if,I have a drop shipping store that did a,hundred thousand dollars in revenue and,I had 30,000 in costs including add spin,product fees whatever and then I'm left,with $70,000 profit so then I'm gonna,have to pay federal income tax and maybe,state income tax depending on where you,live maybe even county depending again,where you live on that seventy thousand,dollars so I don't pay on the whole,hundred thousand dollars I pay I'm not,seventy thousand dollars and now when,you're doing this stuff you can expense,other things you know meetings travel,you know as long as it's for business,and you keep all the receipts and things,like that now that's what I want to talk,to you guys about it's just my,accountants office a couple of days ago,for a couple of hours going over all my,taxes for this year things like that and,I did not have everything that I needed,you know you do not want to get audited,you know when you get audited basically,the the government looks at your taxes I,say uh we want to know more about this,and then people by the way you can't,just get audited,it's not just like they do it only on,your current taxes they can go five,years back and say oh we want to see,more about you know,$50,000 on travel five years ago on how,all those are business expenses and how,you expense a private jet and all this,stuff so you do not want to get audited,by the government because they're gonna,come to you in person by the way maybe,expected maybe unexpected and they're,gonna be asking you a lot of questions,and so we want to minimize our risk of,getting audited as much as possible and,the way to do that is to keep track of,everything because the government wants,to see proof of you know doing different,things and paying for these different,expenses because if you're not paying,like sometimes let's say for example you,know you have a hundred thousand dollars,in revenue on a job shipping store and,you spend a hundred thousand dollars in,expenses then you're not gonna have to,pay any tax on that hundred thousand,dollars because you know it's not,profitable now of course this depends on,where you live like I said I'm not a CPA,but you're paying money on your profit,now as far as sales tax goes I've never,actually paid sales tax or charge sales,tax from my dropshipping stores and the,reason for that is because I don't,actually have inventory I have four,stores that I do in-house but for things,that I'm shipping directly from China,you know I'm not paying that that sales,tax or charging sales tax because,technically I'm not the actual person or,manufacturers sending it out you know,the suppliers sort of help you out with,that you know you're paying them and,then they're paying their taxes in China,but you know when they're shipping the,same to another country from China to,the United States then they're gonna,have to pay taxes on you know going into,the country and custom fees and stuff,like that but a lot of times you'll see,if you've ever ordered a product from,Aliexpress you know maybe it cost you 50,bucks but on the packages they declared,it's like five bucks and the reasoning,behind that is because they want to,minimize the risk of you know getting,expect inspected in getting charged more,tax or paying more custom fees because,to more expensive value so I don't want,to dry out this video any longer if you,guys have any specific questions just,drop them in the comments below and I'll,make sure to get back to 300 this video,make sure to leave a like comment and,subscribe,peace

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