Starting an Ebay Business

[birdman42]

Originally Posted by chalupacollects

If your state has the option, set up the business as an LLC. That way you can net out your expenses, profit and losses and your profit would be taxed as part of your regular income so your gains would be taxed at your normal 1040 rate. No capital gains to deal with... depends on your state though.

An LLC is a state entity. It has little to do with how your income gets reported. Here in Maryland forming an LLC means that you now have to file a personal property return each year, which has a filing fee of $300 in addition to the burden of preparing it.

When it comes to establishing whether you're a business or a hobby, having the LLC status is a point in your favor. But so are business cards, advertising, and regular activity.

I deal with sole proprietors who are LLCs, but also S-corporations.

Bill

[SAllen2556]

Have you considered just setting up a table at a local card show? If I was liquidating, this is the first thing I would try. All cash. No receipts. No IRS this or that. My only expense is the cost of the table. And it would probably be pretty fun.

[Gusturd]

Originally Posted by SAllen2556

Have you considered just setting up a table at a local card show? If I was liquidating, this is the first thing I would try. All cash. No receipts. No IRS this or that. My only expense is the cost of the table. And it would probably be pretty fun.

I have given that some thought. Can anyone rent a table at a typical show or do you have to be registered as a dealer?