Business/ Tax question....

brandofamily

I'm new to the business ascpect of Smugmug, so forgive me if this is a dumb question. I see that on the order page there is a slot for sales tax to be added.
Does that mean that Smugmug is taking care of the state/fed sales taxes that maybe rewuired for the sales of these images. Further, if SM is charging the tax. do I need to be concerned about sales taxes for my sales via SM?
I understand I have to declare profits for tax purposes. But that's a different subject.
Thanks
Anthony

Andy

Because it is an online sale that technically takes place in California, we charge sales taxes on any California purchase. It is up to the customer to declare taxes themselves according to their own state regulations. Sales taxes on Internet purchases are only required to be charged by the seller on purchases in states where the seller has a physical presence. Since we collect the credit card information, we are considered to be the seller.

You personally will get a 1099 from SmugMug, with all sales made by you, we report the income to the US Government. See SmugMug Help:

http://www.smugmug.com/help/reporting

Hope this helps,

flyingdutchie

Andy wrote:

Because it is an online sale that technically takes place in California, we charge sales taxes on any California purchase. It is up to the customer to declare taxes themselves according to their own state regulations. Sales taxes on Internet purchases are only required to be charged by the seller on purchases in states where the seller has a physical presence. Since we collect the credit card information, we are considered to be the seller.

You personally will get a 1099 from SmugMug, with all sales made by you, we report the income to the US Government. See SmugMug Help:

http://www.smugmug.com/help/reporting

Hope this helps,

I see that smugmug pays out monthly if the profits are $500 or more, quarterly if they are $200 or more.

But what about smaller amounts. I don't sell many pics... I sold 1 pic so far, sitting at just over $40 profit... If i don't sell 4 more pics, i will never get the $40?

And even for this 1 pic, i have to fill out the w9 form? If so, i'm gonna declare quite a few deductions for my equipment purchases.

Andy

SmugMug and Payment to Pros

flyingdutchie wrote:

I see that smugmug pays out monthly if the profits are $500 or more, quarterly if they are $200 or more.

But what about smaller amounts. I don't sell many pics... I sold 1 pic so far, sitting at just over $40 profit... If i don't sell 4 more pics, i will never get the $40?

And even for this 1 pic, i have to fill out the w9 form? If so, i'm gonna declare quite a few deductions for my equipment purchases.

Yes, you MUST fill out a W-9. All that info, and link to download the form, is here:

http://www.smugmug.com/help/reporting


We pay profits monthly when they exceed $500, and roll them into the next month's payment if they don't. We pay quarterly for profits of $200. Currently, payment is made by check.

Checks are prepared during the first week of each month. Please help us stay efficient by waiting, if possible, until you have at least $100 in profits due to you before requesting a check. Your check request will be honored the next scheduled check printing.

We'll write a check for any amount, if you've filled out a W-9, and you've made the request for the funds. It's your money, not ours. We want to pay you.

So, IF you have sent in a W-9, and IF you request to help@sm that you be paid for the amount under $200, you'll get a check in the next scheduled check run.