Dropship NOW - How do I go about reporting income from my ebay business?

How do I go about reporting income from my ebay business?

I'm about to get serious with my ebay business. Do I need to file paper work outside of a 1040 form? Or is it as simple as filling out the income line? I'm confused since its self employment. Do I need a business license?

Public Comments

I would talk to a tax accountant on the paper work and/or go to www.irs.gov. As far as the business license, it depends and you are calling it a business. I would consult an accountant or attorney. Check with your state and local area about businesses.
You don't need a business license, just fill out Schedule C of 1040 form. You can deduct your cost to reduce your tax liabilities (Internet cost, putter, and etc.) You may think about using a good CPA or accountant for the first year so you can get everything right, or use TurboTax >>>the one with Schudule C in the software, they will walk you through it.
1. You don't pay tax on your gross sales, you only pay taxes on your net profit (sales-cost of goods sold - expenses), yes a schedule C with your 1040. The first year you may want to use a CPA or other tax preparer 2. As for the business license that depends on the state/city you do business in. In nearly all states you will need a sales tax license and you will need to collect & remit sales tax for anyone you sell to within your state. Again, a CPA can help you will this. Get up and going and take some of your profits to pay a CPA for some solid business advice. Since you are small stay away from the large firms and find a small guy. Good luck to you