Company Drop Shipping

Do I have to pay federal taxes for having an online business drop shipping?

Joe Joe asked:


We have someone that ships out the product for us. We do not carry any inventory.

Beth

Tags: Drop Shipping, Federal Taxes, Online Business

This entry was posted on Tuesday, August 26th, 2008 at 4:59 pm and is filed under United States. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Do I have to pay federal taxes for having an online business drop shipping?”

1. Nusha says:

   August 28, 2008 at 6:41 pm

   You pay federal income taxes (and state if applicable) on the net income you make.

   You calculate that by taking the Gross Income you get and deducting all your expenese and costs of the products.

   If you are making money then you owe taxes.

   You should probably get some advice from a competent tax advisor.