Author Topic: Which Business Entity to register for ebay business?  (Read 288 times)

teltic

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Which Business Entity to register for ebay business?
« on: June 29, 2019, 05:03:04 PM »
Hello!  I've decided to focus in on my side hustle and hopefully transition it to become my full time job reselling on eBay.

Sole Proprietorship:  Seems the most common.  I just add the income to my personal taxes.  (Currently making $101k, smartasset.com shows me my marginal tax is 36.6%? Shit!).  Free/cheap to file as one.

LLC:  $70 in Utah. I've heard lots of companies register in Delaware or Nevada for Tax benefits? Nevada has no state income or corporate tax?  Anyone want to expand on this?

I aspire to make $50-$100k long term reselling, but realistically the first year or two will be $10-$20k... If this matters.  If my business gets in the $50k+, I'd quit my $100k job to focus on it full time.

Any advice is greatly appreciated!

birdiegirl

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Re: Which Business Entity to register for ebay business?
« Reply #1 on: June 29, 2019, 10:57:14 PM »
What kind of products are you selling?  Do you have concerns about liability?  If not, Iíd stick with a sole proprietor for now. 

I sell on Amazon as a side hustle and have kept with a sole proprietorship, similar income to what you projecting. For me it wasnít worth the hassle and cost of setting up the LLC, filing those tax returns etc.  I just report the 1099 income on my personal return and set up a SEP IRA to take advantage of that deduction. 

However I do not sell any food, supplements, vitamins, etc. because I donít want the liability risk in the event someone became ill or injured from a product I sell.