If I decide to sell my jewelry over the internet, will paypal include tax?

Question

Hey there. I figured since I've pretty much sold all of my jewelry that's going to be sold in my mini-town, I've decided to take it to the internet. I will hopefully sell through my blog. I have a paypal account, so I just have a few questions....

1. If I sell something with paypal, (Just put up a 'buy me' button next to the item) Will it include tax? I don't want to get the federal government at my house. (Do I have to include tax? I'm only 16.) Can they arrest me for that???

2. The way I'm thinking, People will make a comment on my blog if they want to buy something, leaving their email. They post what they want. Then they click the 'buy me' button, and then they email me their mailing address, which then I will send them the earrings in a nice gift box or something that I make and then Mail it first class. (Maybe they can pay for more to get it quicker?)

I make these earrings by hand, each one is unique and never the same.

http://i152.photobucket.com/albums/s189/ZeldaFreak50/JewelryImageIII.jpg

How much would you sell a pair for? I charge $4 a pair when I sell them at a coffee shop on consignment.

3. I think I have my Mom on board with this idea, but how should I get my Dad into this? Any suggestions would be great. He thinks that internet business is not good. T____T

Thank you sooo much for helping me out with my business! And as always, God Bless.

Lastly, if you have a link for a better way to go about this, that would be great too. Thank you so much again! ^-------^

Answer 1

yep

Answer 2

You have to manage your own taxes. First is collecting sals tax when selling to people in your state. Federal taxes depend on profits, and you need to track income and expenses and file a schedule C at end of year.



Even more important. ebay and paypal both have fees. Check them carefully before you decide on a price. You pay ebay even if something does not sell. $4 sounds WAY too cheap, but I know nothing about jewelry. Think about the cost of the box, and charge enough for shipping that it covers costs and makes a small profit as well.

Answer 3

1) don't charge tax unless your openning a business to sell ...



2) you can't get in trouble for anything they don't know about. If you sell OUTSIDE of the state you live or do business, then Sales Tax does not apply anyways!

Answer 4

Just in case that happens, you will need to ask for a bit more for your jewelry. Along with shipping/handling fees. Just remember this. eBay and Paypal will make sure they will get their cut first. It is there business.

Answer 5

paypal does not charge tax, but they do charge the money that comes in if you have a premier account, and accept a payment via credit card they carge a percent on that

Answer 6

JUST TO LET U KNOW SELLING JEWLERY GOES BY PENNY WEIGHT SO 4 ONE GOLD NECKALACE YOULL ONLY GET ABOUT THREE DOLLARS