Paying Yourself???

[tgpine]

I've been selling with a free account and recently subscribed and opened an ebay store, which we aren't officially calling a business yet.  Right now it's just a hobby and gives us a little extra spending cash.  My girlfriend and I are doing this together, but using my ebay account, so I'm aware that I will be filing the 1099 each year.  My question is this, if we decide to make a business out of this, how do we pay ourselves salaries and still maintain enough funds to keep up inventory and pay expenses? Do we just not take a salary, maybe pay ourselves by splitting a commission?  We're not going to get rich by any means, but would eventually like to make this a part-time business and not just a hobby.   Any advice is appreciated, as we are totally new at this.  How do you all pay yourselves?

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[heckofagame]

I would suggest speaking with an accountant. He/she will be able to steer you in the right direction.

[dhbookds]

Agree with the accountant........but I'd also look for a Dummies book........on how to start a small business.....there's probably one out there.  Get the real thing.....not a rip off.......which you can probably get cheap on ebay..........lol......

I read the Ebay for Dummies book before I ever started listing here and it helped alot.....

In the meantime......Keep really good "books" on costs......sales......so you can actually see what you are making.........

paying salaries is probably not in the foreseeable future......but using the profits wisely is......what's your aim? Build up a cash stash for inventory........enjoy dinners/vacations from the profits, etc. ?  Don't jump too far ahead....... I started wanting to pay a lady to clean my house once a wk........

[hartungcards]

Guess what?  As soon as you sell anything, it's a part-time business.

[mtgraves7984]

How do you all pay yourselves?

@tgpine 

In quality time spent with the (far) better half. 🤣

ETA: I am just skimming your items. Yours are the types of listings that I love to look through! Good luck to y'all!

[wrong66]

And please, get that soda can out of your photos. It takes away from everything.

[12345jamesstamps]

If you have the money to afford an accountant that is the ticket. I would just do 50-50 profit which makes it easier. You are looking at deductions and profits, losses and everything in a business. Need an accountant for that. With deductions, that 1099K shouldn't be a problem. I just bought a new computer yesterday and will deduct it for I couldn't sell without a computer. And I got a receipt for my dead computer from Apple as being recycled. There are a lot of deductions you can use before thinking of salaries. I need wifi to sell...that's a deduction. I have eBay app. on my phone and use that for my business so my phone bill is a deduction. H & R block lets me do this. There's postage, tape, receipts from buying stuff. Gas if you have to drive to the post office for a deduction. Instead of thinking of salaries....think of deductions and keep all receipts for end of year. I think you would have a bigger profit if you don't have to hire an accountant...until maybe when you have about 2000 items up for sale everyday...then think about the accountant.

[wrong66]

Never mind. I'm not with it today. Sorry.

[monica-sells]

Whether you sell 1 item or 100 items it's a 'business'

you can call it a hobby for the 'feel good' effect, but when you sell stuff to a general audience through any platform, it's a business.......

that being said  *KISS* (Keep It Simple Stupid)

Problems arise so I will just look at simple scenarios......

Each throw in equal amounts of start up cash to buy inventory.......

sell inventory.......

pay associated fees....

deduct all expenses...

split what's left 50-50

You are partners....you can memorialize that with a contract (recommended) or just go on a handshake.....

there are a lot of reasons (mostly financial) to be an 'official' business....but you can evolve into that with the help of an accountant/CPA

[tgpine]

Thanks for your input.  Between the two of us the 50/50 isn't an issue, we do everything together.  I was speaking more along the lines of the business aspect of paying salaries, not worrying about what each of us are getting out of it or putting into it.

[tgpine]

Thanks for all the input, you have shed a lot of insight and given me lots to think about.  Much appreciated.

[tgpine]

Thanks for all your input and not being a smart*ss like some of the others.  You are spot on when asking about our aims, we are just looking for a little extra cash to enjoy life a little more....dinners, vacations etc.  

[tgpine]

Thanks, I do believe that is a must if this thing ever takes off.

[tgpine]

Right now we don't really pay ourselves.  The money we make from sales just goes right back into my bank and gets spent with the rest of the money.  I'm just wondering in case we were to actually open a business bank account and turn our ebay into a business account.

Clear as mud, right?