I am a self employed freelance artist with little or no inventory since I sell it off at the end of the year. My question is I would like to add/create new store online for clothing at retail price.
To be simple, my question is: when I buy wholesale 100 pair of socks, my cost $1.00 each, total of $100.00. then at the end of the year I sold 75 pair of socks.
Now, I have 25 socks leftover for new year inventory.
So, in the Schedule C deduction
for business expense
, should I deducted $100.00 for 100 pair of socks even though I sold only $75.00 worth?
In the beginning of the year inventory at the top of schedule C, I should put down $25.00 for 25 pair of socks at my cost? But I read, it said to add 50% inflated for retail inventory, so it should be $50.00?
For statutory employee or sub contractor.
Since I will be providing all the office supply as stamp, card board boxes, etcs. It will be on a small scale like 5 to 10 orders a week and the person's job is to wrap it and ship it on her own time within a week time frame, no rushing and choose her own post office or may deliver to customer if it is local
, it is her choice, route.
If I hire this person as statutory employee, how do I pay the person on the tax
form in commission instead of hourly wage? Since this will be pay based on per order.
Should I use 1099 MISC form instead of statutory employee?