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Posted August 3, 2012
With the economy continuing to get worse every week, more and more people are finding a second income by becoming an online seller on popular sites like Amazon, eBay and Etsy. Even television is getting into making money by selling used items such as Pawn Stars, American Pickers, and Storage Wars. Of course Amazon and eBay have been available to the public for many years before these shows existed. Some people may find it as a hobby selling collectables, antiques, old books, used items, or handmade crafts online, while others are making a small if not large income from having an online store.
Just as bloggers now have to have a disclaimer on what review copies they receive, the government is now cracking down on e-Sellers. When the Housing and Economic Recovery Act of 2008 went into effect in 2011, e-Sellers now have to turn in your newfound income to the IRS, especially if you are bringing in at least $20,000 from your e-Selling.
The Atlantic Publishing Group has released a new book by Martha Maeda titled The Complete Tax Guide to E-commerce Retailers that touches on this very subject.
I didn’t realize that starting an online shop wasn’t exactly that easy, especially when it is more than just a hobby. You have get a state license, create a name for your shop, get a logo, open a separate bank account, get a Federal Tax ID Number, and get a post box. And that’s just getting you started. You have to keep records on literally everything related to your business. This book explains in Laymen terms on how to get all the right paper work for your business, and what the correct tax forms you should use. There’s a bonus CD-ROM contains all the IRS tax forms that are within the book and a few sample business plans to get you started.
If you are interested in becoming an online seller or if you already are one, I recommend that you read The Complete Tax Guide to E-commerce Retailers.
*Disclaimer: I received a free review copy from the Atlantic Publishing Group.