eBay

kygurillc · ‎03-12-2021

I formed my LLC mid February. However, since January, I have made sales exceeding $1000, so inevitably, in the state of Illinois, I have to file taxes on it. I haven’t transitioned my eBay account to my LLC yet, because I wanted to know if I have to file the sales I made on eBay in a separate section for my taxes, or it must be combined with the LLC? If I need to submit a yearly form for my state for LLC profits to be taxed on, is this just on section C? Do I combine the two? I don’t think you would... I’m trying to prepare myself for the following tax filing year. I know and understand the LLC will be filed with my personal tax forms, but where do I file for the taxes I have to pay back on the sales made prior from the LLC? If both are on section c, wouldn’t this mess up my annual filing for my LLC?

mr_lincoln · ‎03-12-2021

@kygurillc You should visit your state's web site and read up on LLC filings. if it were me I would just lump the 1 grand in with your LLC filing, otherwise you would report it on your personal income tax using an IRS Schedule C form ... that's a lot of extra work for $ 1000 in sales.

If you sell more than 20K in the calendar year eBay is going to issue YOU a 1099K ... they aren't going to split out the $ 1000.

Best regards,
Mr. Lincoln - Community Mentor

kygurillc · ‎03-12-2021

In the state of Illinois, $20,000 no longer applies. It is $1000 now to file. I thought the Schedule C form was for also LLC’s? If I can file both separately would be great. A lot of work or not, I just want to know if I can file it separately from the LLC. But also, say I bought an item for $500 and sold on eBay for $750. Can I deduct the cost it originally cost on schedule c?

mr_lincoln · ‎03-12-2021

@kygurillc Go to irs.gov and download a schedule C PLUS the instructions and read them. You can file the $ 1000 you sold prior to the LLC through your personal income tax via the Schedule C. If you sold anything else outside the LLC you would include it on your Schedule C.

The $ 20,000 I mentioned has nothing to do with ANY State's minimum threshold for retail sales reporting, the $ 20,000 is what the Venues use to determine if THEY issue 1099Ks or not ... that would be PayPal last year, eBay now.

Next year, 2022 issued 1099Ks, I think the $ 20,000 for 2021 sales will be dropped to 1K or lower, at least someone posted that. THAT is a Government setting NOT individual states.

Best regards,
Mr. Lincoln - Community Mentor