Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I am preparing to start an eCommerce retail store and am…

Customer Question
I am preparing to...

I am preparing to start an eCommerce retail store and am doing so by drop shipping all of my products from China. I am working from my home in Pennsylvania and I'm looking for a straight forward answer on how to handle sales tax and paying taxes at the end of the year.

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

I also have an EIN number as a sole proprietor.

Submitted: 4 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 8 minutes by:
3/6/2018
Tax Professional: Barbara, Enrolled Agent replied 4 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,400
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

As to income tax, you will use Schedule C to report your income and expenses. The net income will flow through to your personal 1040.

You will pay income tax and self-employment (Social Security and Medicare) on your NET income.

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

As to sales tax, PA is an origin-based sales tax state. That means sales tax should be collected based on where the seller, which is you, is located.

https://www.nolo.com/legal-encyclopedia/pennsylvania-internet-sales-tax.html

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Ask Your Own Tax Question
Customer reply replied 4 months ago
just to clarify. If anyone in any other state besides Pennsylvania buys something from my store I don't charge them tax? I only charge sales tax to those who live in Pennsylvania.
Tax Professional: Barbara, Enrolled Agent replied 4 months ago

That's right.

Ask Your Own Tax Question
Tax Professional: Barbara, Enrolled Agent replied 4 months ago

Just following up with you to see if you have any other questions. If so, please let me know so I can continue to assist you.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Barbara Your Own Question
Barbara
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,400
6,400 Satisfied Customers
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.

Barbara is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
My question is regarding collecting sales tax. Is that
My question is regarding collecting sales tax. Is that something you can answer? … read more
Bryan M.
Bryan M.
Owner
Masters of Accountancy
159 satisfied customers
I reside in the state of Texas and I run a graphic design
I reside in the state of Texas and I run a graphic design company. I have recently begun selling some of my art posters on Etsy and now I am looking into drop shipping with a supplier in North Carolin… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
Pearl. I'm not sure if you can answer this, since it does
Hello, Pearl. I'm not sure if you can answer this, since it does seem sort of complicated. I want to start an ecommerce business as a single owner, can I register in Nevada even though I live in Penns… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
Our company and office is located in Cyprus. We have an
Hi, Our company and office is located in Cyprus. We have an ecommerce website and sell to Customers in the US. Our products are shipped directly from a factory in China to the customer, it's known as … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
a retailer with stores in 15 states operates a leased department
a retailer with stores in 15 states operates a leased department within a New York department store. The retailer also operates in NY. The department store handles the transactions, collection of $, e… read more
Shawn P. Adamo
Shawn P. Adamo
CEO
Bachelor's Degree
18 satisfied customers
I am launching an ecommerce website in northern CA and have
I am launching an ecommerce website in northern CA and have partnered with several in state and out of state vendors who will be drop shipping some products. Am I required to collect sales tax for tho… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I have my business in New Jersey and I am selling something
I have my business in New Jersey and I am selling something to a NY customer and the item is shipping to NY and it's going also out from NY like drop ship do I have to charge sales tax? If not can you… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am a California resident with an LLC registered in California.
I am a California resident with an LLC registered in California. My ecommerce retail site sells clothing and footwear online, do I need to collect sales tax from my non-California customers if I am se… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I am starting an online business in retail and re-sell. I have
I am starting an online business in retail and re-sell. I have an EIN tax number from when I tried to start an online business in another state, but never got off the ground. Am I able to use the same… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I am opening a brand new online retail store selling golf related
I am opening a brand new online retail store selling golf related merchandise (apparel, clubs, bags, training aids, etc.). I am very confused about the laws regarding sales tax charged by me to my cus… read more
StevenMcGrathCPA
StevenMcGrathCPA
Master's Degree
39 satisfied customers
What is a tax resale license and when is it required. I am
What is a tax resale license and when is it required. I am investigating going on line where I connect buyers with dropshippers. If I do this I would collect the money for an order then notify the dro… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
I live in Washington State. I work from home creating apps
I live in Washington State. I work from home creating apps for the iPhone. I am a Sole Proprietor and got a business license as required by my state to do business as "Ethan Productions". I upload my … read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
I am starting an online retail web site. What tax rate will
I am starting an online retail web site. What tax rate will my customers be charged? Should I and can I establish the company in a lower or non-tax state?… read more
Dave Z
Dave Z
Self-Employed
Bachelor
418 satisfied customers
I am opening up an online store. My wholesalers are from all
I am opening up an online store. My wholesalers are from all over the country. I live in NY. When it comes to taxing the products, do I tax new yorkers, do I tax the customers from the states the whol… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I SELL MINERAL PRODUCTS WHICH I BUY FROM A DISTRIBUTOR . THEY
I SELL MINERAL PRODUCTS WHICH I BUY FROM A DISTRIBUTOR . THEY CHARGE ME TAX. I IN TURN CHARGE MY CUSTOMER TAX. D0 I NEED ANY TAX ID NUMBERS? I ALSO APPLIED FOR A BUSINESS NAME AS A JOINT VENTURE.… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
Good day thank you for your time ( Jon g Im starting a ...
Good day thank you for your time ( :Jon g Im starting a small internet bussiness was wondering about all permits needed in pennsylvania I have the following > federal tax id state tax id DBA wholes… read more
Cassandra
Cassandra
Accountant and Tax Preparer
Bachelor's Degree
170 satisfied customers
Starting a home based business as a reseller/distributer of ...
Starting a home based business as a reseller/distributer of heating and air conditioning equipment to the hospitality industry. At no point would I warehouse the product, just sell it and ship it from… read more
Mic
Mic
CEO
Working on PhD in Hypnotherapy
174 satisfied customers
I live in Pa and I am looking on the how get a tax ...
I live in Pa and I am looking on the how get a tax exempt number and answer to tax question about doing business through the internet? Where can I get answers and help… read more
Paul Taliefero
Paul Taliefero
Enrolled Agent
Bachelor Degree
110 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x