This section of the forum is for discussing the business and finance issues of the t-shirt industry. Which business structure to use (sole proprietor, LLC, S Corp, etc), how to handle billing, where to register your business and get the proper licensing, etc.
how do taxes work when i order from wholeseller?
i have account w/ tsc.
in january, do i report on sales of all shirts i order form wholeseller?
if I "hook up" a friend, for example, by selling him shirt at wholesale price(I don't make money), will I lose money when reporting taxes, b/c I pay taxes but then I didn't make any profit, when I did my friend a favor?
Are you talking Federal taxes? You probably should talk to an accountant or get a bookkeeping program like Quicken/QuickBooks & TurboTax to answer your questions.
Keep track of all your expenses for your business and all your sales. If you buy a shirt for $1.00 and then sell it for $1.00, it's a wash.
If you sell it RETAIL, if your state requires, you need to collect sales tax on the sale.
when i sale to a friend, I charge them tax on the price. i also add .50 for shipping cost, I never sale for just the price of the shirt.It cost me to get it in my hands, so I charge for that. ...... JB
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If you are talking about sales tax, you should check with your state about filing requirements. Most states require filing more than once a year. Its quarterly in TX.
All you are reporting to them is the sales tax you charged customers. Every thing you sell, even if its at wholesale price to friends, must be charged a tax. 100% of what you collected is then due to the state.
how do taxes work when i order from wholeseller?
i have account w/ tsc.
in january, do i report on sales of all shirts i order form wholeseller?
if I "hook up" a friend, for example, by selling him shirt at wholesale price(I don't make money), will I lose money when reporting taxes, b/c I pay taxes but then I didn't make any profit, when I did my friend a favor?
The way I've always explained it to customers and friends is that I'm not charging you sales tax, I'm collecting it on behalf of the state. The person to complain to is your representative. This usually puts it in the right perspective. It's not like they try to get out of paying the tax when they buy gasoline or a bottle of pop.
So to answer your question, charge your friend what it costs (wholesale price + shipping) and collect the tax for the state then report it, that way you don't lose money and your friend still gets a good deal.
Ordering wholesale and taxes 
Re: Ordering wholesale and taxes 
