reed carefully please i'm a new suscriber these is my second video from your channel but i have a question : how i can register in merch by amazon without a bank account so i cherche in youtube and i look for how to creet an account in payoneer without bank and personal card because i don't have 18 years old , i love making money online thanks for reeding
Greg thanks for your videos. I am an accountant and just want to clarify that the income from your e-commerce business or PoD business should be reported on schedule C and not as other income. By reporting it on schedule C you get to deduct all related business expenses (memberships, sales tax, internet, office expenses, software, etc) I hope you are not missing out on the deductions available to you. You can always go back and amend your returns.
I was literally coming to the comments to ask why he recommends other income, instead of Schedule C where you can also deduct expenses (laptop, internet, etc...). Thanks for answering!
I heard that requesting an EIN from the IRS does not hurt anything, and helps to keep your social private, and you can use it on schedule C, that sound about right...???
Hi @genesis Toledo, schedule C is US related? I am from the Netherlands and will be a new seller as of next year. Where do put my earnings? At the Income tax or also every Q with my revenue tax?
Good info, Greg. Another thing I'd like to add is, the reason why you won't have to pay any other taxes (except for income tax), is because your position is not a "merchant", but more like a "subcontractor" - you make your designs and you get paid a commission for each products they (Teespring) sold. This means, they are the ones that must pay the sales tax, not you. This is different than owning your own Shopify store and selling POD products through there. Printify has a video somewhere on TH-cam explaining this topic. It's pretty complicated, especially for international sellers, because unlike most countries where you only have a single tax nexus, the US is a federation of states, so each state gets their own nexus. And you, as the seller, have to keep track of this, and pay sales tax to each separate state you have a nexus in. This is also the case with Etsy. This is also why I decided to go with Teespring first. All those tax systems sound complicated, and frankly, daunting.
@@GOATS10M Well, your local tax office. As usual. Or at least, where I'm from, people usually pay at their local tax offices, or through a designated bank. Is it different in your country?
Dude, you're my hero. Taxes and paperwork was the only thing keeping me from pursuing my art purpose. I'm 27 years old, and I've realized that I've been working in the wrong industries most of my 20's. I found myself happy in college studying art and design. Now with this knowledge on biz, I can be confident selling my artwork. Again, thank you for your content, you're changing lives!
You can also use Schedule C (on your 1040 personal tax return) that way you can include your expenses as well, and local court fees to open Sole Proprietorship is minimal.
That is how I went about doing it. I recommend for printful* to open a business bank account so you can use a business credit card because they pull the money for the shirts as soon as you get an order then you get the profits 2-3 business days later. Don’t want to get caught with no money to fulfill orders
@@GregGottfried +im still scared. i am following ypur tips to open a pod store but i guess i will have to check how the taxes thing work in mexico. by the way, you always recommend etsy to look for inspiration, but not as a way to sell tshirts... why?
@@damiaguirre3139 yeah i am afraid of the taxes too it is not fair so you get about for example 4 dollars for a t shirt and then you still hav e to pay taxes i do not understand this
Brilliant explanation of how to pay taxes in print on demand and setting bank accounts and companies! Now I am all set to go for the print on demand business!
Excellent! Thank you for taking the time to comment and for the support! I really appreciate it and as always if you have any questions at all, feel free to reach out anytime!
Greg! Thank you SO much! I have been fretting about this since I Started POD and could find almost no info anywhere about how to claim this on my taxes in the US. I had seen another TH-cam video from a lawyer that said you could definitely claim it on your personal taxes but there were no details about how to fill that out! You made it so clear what to do! I always do my own taxes with TurboTax and really didn’t want to have to have them prepared professionally. This eased my mind and now I know I can do my taxes with no worries. Thanks for talking about what nobody else seems to want to talk about!
Excellent! I'm glad this video has been helpful! Thank you for taking the time to comment and for the support Gail! I really appreciate it and as always if you have any questions at all, feel free to reach out anytime!
Thank you! I try to make these videos how I would want to watch them, short and sweet with no fluff. I appreciate you taking the time to show support. Thanks again!
Well, I’ve had a LLC and in the state of California it was $850 a year to maintain. I wouldn’t recommend it unless you are making a full time, livable wage from your business..
THANK YOU! I only get to keep about $3-$11 per sale (even though the item costs $35-$60 so I didn't know how I was taxed). Now, I know it is just off the profits.
Awesome video thank you! Do you set aside a certain portion of your earnings for taxes, once they start becoming substantial? And when you price your items should we make them higher because of sales tax or VAT or anything like that? Do you have any videos regarding those things? Thank you again for wonderful and easy to understand vidoes!
Okay I don't want to run his video's at 2x speed like i do it for all others because all his content is so upto the point and valuable.. Can't thank you enough Greg Please take out some time and give him a positive comment for his video's to encourage him & keep doing such valueable content for us....
Thank you so much Greg!!! I really appreciate all the information that you give... You just answered the number 1 big question that I've had in my head all week. Its a relief to know that a personal pay pal account is acceptable!
Solid info Greg! I bought a few of your courses on udemy and I'm looking to start branching my business into e-commerce this year! Looking forward to what 2020 has to offer for you as well!
Right on! Thank you for taking the time to comment and for the support! I really appreciate it and as always if you have any questions at all, feel free to reach out anytime!
Hi Greg, thanks for all the great info. I was setting up my accounts and I read that RB does not distribute the sales taxes and that it's up to you to forward those to the appropriate agencies. How do you handle that?
Ok great, let me know what you find if you don't mind. How I understand it is since we are just the "design creators" and the POD websites actually create and sell the physical products, we don't need a sellers permit.
Hey Greg, love your work. My question is: What about RB collecting taxes on our behalf? Part of our "profit" is collected by RB as sales tax, then paid to us. Could you clarify a bit? You'd be my hero, lol.
Thank for your great videos. Please can you confirm that the sites that you recommend pay over the sales taxes on your behalf. I am looking at going into this type of business but I am outside of the US.
if I'm out of the US and work on print on demand, also I withdraw my money to my local bank account thru Payoneer US account, do I have to pay anything related to taxes to the US or not?
@@GregGottfried sorry i didn't understand ,i mean if i am not from the US and i work on print on demand or any other type of non-physical business do i need to pay taxes to the us or no ? thank you agian
@@youssefkaafarani5649 I have that question too. I live in Brasil. Do I have to pay taxes only in my country or do I have to pay some taxes to the US either?
@@carlosfaccin5476 i have searched and it turned out that you don't need to pay taxes to US since your are not a US citizen , but there is a form called W-8BEN , some print on demand sites may need you to fill this form so they can ensure that your are not a us citizen , and they can take up to 15% of your income.
Thank you!! Great video. Answered pretty much all of my beginner questions. Question: What are all the taxes we as sellers need to be aware of when doing on-demand print in the USA? I can only think of sales tax and income tax. Anything else?
Question. I'm doing etsy and printify. Would i take Esty's yearly amount sent to bank and Minus Printify? like if I made 200k on etsy but spent 100k on printify i would say i made 100k?
HI Greg, I like your videos. Well articulated and short enough to absorbed the info, so well done. Question: For POD, if you are selling nationally, their are different tax laws across different states?. Does we, the business owner have to worry about any business related activities relating to the POD business? or do we, just concern ourselves with paying tax on received income, regarless of where we sell in the States?
Great question. Just the received income because we are not the actual seller of the product, rather we are just the artist getting a royalty it commission on each sale.
Thanks for the awesome content. Regarding POD in Europe, the companies such as Printful now charge us VAT taxes. So not having a business entity we'll have now 21% less profit cause we are forced to decrease our prices. For example an €18 ( €12.50 Printful's price + €5.50 my profit ) t-shirt becomes €26,06 ( €18 the retail price + €3,72 shipping + €4,34 VAT ). That's way more than anyone would pay for a regular POD t-shirt. So in order to have a €5.50 profit, I have to charge my customers €26,06 ..that's worthless!
This is the video I was searching for and you answered almost all of my questions. I can’t thank you enough. I just have a request if you can explain how to handle Etsy shop and it’s taxes. Thanks again.
Hey, I love the video but I have a few question. Firstly can you collect sales tax under the age of 18. Then let’s say I’m using printful but I do not store products in a warehouse, do I have to collect sales tax? I’m in Illinois but printful is in North Carolina, do I have to collect sales tax? I’m using Shopify to make my online business and putting my logo on clothing with printful, is my nexus in Illinois or Norht Carolina and do I collect sales tax? Thank you, I really appreciate it!
Thanks for this information. This is the most confusing part of starting a business. My question is have you ever done any kind of trade shows where you take some products to sale in person. Would you need a sales and tax permit for that or no?
Thank you so much for the comment! As always, if you have any questions as you're going along just let me know!
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Hi Greg, thanks for the info. I have a question. I’m not from the US. But the paypal account I use on teespring is my cousin’s. She lives in the US and has a green card. Do you think she’s the one to be charged for taxes because she has the paypal? I don’t wanna put her in trouble😅
I have two questions... The first being: since technically you'd be considered a sole proprietor (or if you were to set up an LLC) wouldn't you have to pay quarterly estimated taxes? And second: you mentioned just reporting how much income you made, but how do you actually pay the tax on that income? Does the IRS and state bill you after you send in your 1040 or schedule C and you pay the bill or what?
Thank you for taking the time to comment and for the support! I really appreciate it and as always if you have any questions at all, feel free to reach out anytime!
Great question. If you’re using print on demand marketplaces you don’t have to handle state sales tax. It’s all done by the website. Hope that makes sense 👍
What state are you talking about in regards to taxes because alot of states have different tax regulations and stating what state you are from really makes a difference
Since we are not the actual seller of the product (the print on demand website is) we do not have to deal with the taxes like a product seller would. We are just paid commissions like a freelance 1099 independent contractor would be.
Hi Greg, Im a foreigner here. I want to ask would print on demand allow non US resident? I am seriously learning to start POD but I can't seem to find answer anywhere for this. Thank you Greg!
Hey Greg , This is Roger here. I do appreciate you sharing your knowledge about POD, it´s definetely at a course level. I´m starting my POD business now and I´m kind of concerned about taxes since I´m international and I´m not really sure if I´ll have to pay taxes twice, let´s say in the US and in my country as well. Do you know how people from other countries do in this case? Thank you very much......you rock!!!
So if I sell via a POD like Redbubble etc. I would not have to report sales taxes since they take care of that, but I would need to report the yearly income on my income tax correct?
Great video. I have a question as you mentioned you dont have to establish a business entity as you can just add to your "other income". How about expenses? Ie computer, software or anything else you needed or was necessary in order for your print demand business to generate income. If you dont have a business entity then would you or should I say do you still deduct those expenses?
Hey Greg... I have a question not directly related to this vid: when setting up a teespring store, does it matter if I have my own domain name and url in my campaign that redirects to the teespring site/store? I want to use my own url for branding and to make it seamless to jump platforms if a design hits big, but I don't know if that hurts me toward teespring's marketing or other things that I'm not thinking of. TIA.
Hey, which color are you doing your designs in? Do you do one in white or one in black or do you just make the same design in 2 colors to be able to put it on more colors?
Usually black font first. Then if the design starts to sell well over time, I'll make a white version of different color shirts, and a few variations of the design.
Thank you for taking the time to comment and for the support Vinnie! I really appreciate it and as always if you have any questions at all, feel free to reach out anytime! 2020 is going to be great for all of us in online business, the statistics and trends support it :)
Hey ! thank you for your video ! Anyway I have one question I hope you could help me because I havent find many info about that: So I am using etsy only as a POD platform I am living in the Netherlands and my t-shirts I want to sell worldwide. Do I have to pay taxes if my products are shipped for example to USA? and how about EU ? appreciate a lot yourhelp
Great question! I'm not 100% familiar with Netherlands taxes but generally you will only pay your local taxes when you're an international seller. You can sell as many shirts to US buyers though. I hope that makes sense and helps. Thanks!
Hey Greg, do I need to pay sales tax ? I’m from the US. I also hear things on VAT, is that something that applies to a US resident who wants to ship world wide? Thanks so much
Great question! Nope, since we are paid as a royalty/commission, and not actually collecting the payment from the customer ourselves, we don't have to.
Why not do an llc initially. That's why I did not start yet. It takes a little while in my country. Mainly doing it to separate my online payments from business.
Great great video Greg. I do have a question. At what point should we be looking for a W-2 from any of these businesses. And as always thank you for your contribution to making our lives a little bit easy. Have a great New Year.
Thanks Markess! I can't recall with 100% certainty, but I believe if the site requires a form, they ask for it at sign up. I believe it's a W-9 that they request in the beginning (Merch by Amazon does this only I believe). Since we are not employees, we do not get W-2's. We are responsible to report the taxes on our own. I have a great Tax Prep person who handles all of this for me however I do not recall getting any forms in the mail besides something from Amazon. With so many income streams, it gets a bit hard to remember each one specifically.. Again, I wish I could recall with full certainty but I don't think we get anything in the mail besides possibly a 1099 from Amazon.
Hi Greg, so with teespring is there a specific time frame you have to cash out your earnings within? Does it have to be done by the end of the year for example, or could you technically just let your earnings build up and cash out in say 18 months? Can you choose how much you cash out each time or does it all have to be done at once? Do any other print on demand sites operate like this? Thanks
Great question! Nope, your earning build up for perpetuity and you can payout anytime, you will just pay taxes on the amount you paid out during that tax year. Teespring is the only site that operates like this. I hope that helps!
Hi Santiago, great question! I just copy to website link when you are viewing your listing or storefront. If you go to your dashboard and click on the listing, or from your dashboard, then storefronts, then view storefront. I hope that helps!
Thanks. You're one of the few people with entrepreneur channels that I follow that actually respond to comments.I really admire that and thanks for the help!
What about people outside of the us?? How can we do if the pod Pages just asks us for business entity or social ID number and we don't have one? Like printify o cafepress does? I would apreciate any help or advice. Thanks for sharing your knowledge! Keep it up
Love the video! Question, I'm looking to get started into this, does my paypal email have to be the same as my account for these 3 websites? I'm planning to created a "POD" email separate from my personal accounts & my paypal account email.
I do not live in the US or EU and I do not have a tax ID nor have I configured the tax rate, but if in a given case I make some sales to those mentioned areas, am I committing a crime? Could I go to jail?
Thank you for taking the time to comment and for the support Jason! I really appreciate it and as always if you have any questions at all, feel free to reach out anytime!
I have a question please. I'm selling on 1000$ each day. 700$ take by print provider and post service, 100$ take by Facebook advertising. So my net income is 200$ for m 1000$. How I will pay tax, just for 200$? Am I understand correctly? I'm individual (no LLC) / Missouri
Thanks Greg for the great content, I recently discovered your channel, I live in England UK, do you know if I need to pay any tax in US as Teespring is based in USA. Or I just need to pay UK tax.
Sure! Since we are only getting commissions on the sales and not selling, printing, collecting funds, shipping, etc, the products ourselves, we do not have to worry about sales tax. The print on-demand companies themselves are responsible for the sales tax. I hope that helps!
@@GregGottfried I red point 5 of Redbubble's User Agreement (Appendix A Services Agreement) and it says Redbubble does not collect or pays taxes on your behalf so you have to pay sales taxes, VAT on your own (in fact in every product page the write 'designed and sold by (your username)'). How can we deal with sales taxes around the world !?! (+ custom duties where due)? 😬😬😬 I'm getting a bit discouraged 🥺
@@GregGottfried cool. Thanks. I have another question. Could you maybe do a video on how to best add product descriptions and tags. I really struggle with that. Mine sound do bleh and my mind is blank. I hate sales 😊
Hi Greg, I have a question related to sales taxes: Is it required to have a specific tool to 1. calculate and 2. collect the sales taxes, depending on where the sales are made ? or is it already taken care of by Teespring/Merch By Amazon/Redbubble ? Very informative video again. Much appreciated !
hi Greg! When you said e.g. Teespring expenses come as 'Other' in your taxes. This is if you have a regular employed job as well? Would it be considered as freelance work? - Thanks!!
many thanks!! What happens if I am in Europe? Can I open LLC without being located in the USA? With POD I understand that you sell worldwide....so I imagine I should open a business in my own country in this case. However here is much higher that the 130$ a year you mention. We are in the thousand dollars.
hey man! i had a doubt. since the lowest bracket of taxable income is 10,000 , if i cash out less than that every year from tee spring even though there is more than that in it, will i be taxed?
So, you can leave all of the generated income within the Teespring platform for example 2020 and wait to take it out at some point this year? Will you then be taxed for the 2021 year if you do this? I'm assuming you can't write anything off for "business" for your 2020 taxes if you don't withdraw the income?
Hi Jerryd, Great questions. As far as I understand it, and again not tax advise, both of those are correct. I'd look into it further and ask a tax advisor if the latter is correct, but I think you are spot on. I hope that helps!
Just wondering. I opened a POD business in 2020 and have a lot of expenses to right off, so my costs are a lot more than my profits this year. Start up costs etc. My question is - Customcat charges me 9.00 per t-shirt which I sell for 29.99. Do I write the 9.00 off as a cost (or as an inventory cost) the same way I would an office supply for example. How do I deal with all those customcat charges that I incur in order to make my sale?
Hello, I'm starting my ecommerce print on demand business (drop shipping) and I've only registered for sales taxes only in Florida since that's where I live. I've made no online sales yet. Do I need to register for every state to obtain a resales certificate before I launch my website? I'm worried that if I make a sale online and I don't charge tax, later down the line when I do hit the economic threshold for that state I will owe money. If I don't need to worry about that now, when should I worry about it?
I started print on demand on some site named printful, I've been clothing out and have brought my product for myself to try, did I sign up for the right thing or no
Hello Greg! You are AWESOME and I really do appreciate your help. Can you help me with one small thing? See I am from India, when I was trying to setup my PayPal acct, at first it gave me two options whether I want to setup a personal acct or a business acct, In personal acct I can only send payments and on business acct I can do both send and receive payments, I preferred to setup a business acct and then it asks me for purpose code and I cannot find anything relevant to POD business in that section what should I do now? Please help?
Hi :) Is there an alternative or a way around to to get direct deposit from amazon? i live in israel and they dont do direct deposits here.. (not intested in checks of gift cards)
Doesn't one automatically have 'physical' nexus in our home state just for the fact that we live in our home state? Thus we would have to collect sales tax right away for orders being shipped to our home state.
I hope this video answers your questions about Print On-Demand Taxes! Let me know in the comments if you have any more questions!
Excellent Video Greg!! Thank You!!
Great video as always. Can you make a short video on redbubble and merch by Amazon just short video on how these 2 platform works. Thank you!
reed carefully please
i'm a new suscriber these is my second video from your channel but i have a question :
how i can register in merch by amazon without a bank account so i cherche in youtube and i look for how to creet an account in payoneer without bank and personal card because i don't have 18 years old , i love making money online thanks for reeding
On Printful?
Greg Gottfried is printful worth it in the United Kingdom?
Greg thanks for your videos. I am an accountant and just want to clarify that the income from your e-commerce business or PoD business should be reported on schedule C and not as other income. By reporting it on schedule C you get to deduct all related business expenses (memberships, sales tax, internet, office expenses, software, etc) I hope you are not missing out on the deductions available to you. You can always go back and amend your returns.
I was literally coming to the comments to ask why he recommends other income, instead of Schedule C where you can also deduct expenses (laptop, internet, etc...). Thanks for answering!
Thanks for looking out, Genesis :D
Thanks for this! I was googling everywhere to clarity if we should report as schedule c.
I heard that requesting an EIN from the IRS does not hurt anything, and helps to keep your social private, and you can use it on schedule C, that sound about right...???
Hi @genesis Toledo, schedule C is US related? I am from the Netherlands and will be a new seller as of next year. Where do put my earnings? At the Income tax or also every Q with my revenue tax?
Good info, Greg. Another thing I'd like to add is, the reason why you won't have to pay any other taxes (except for income tax), is because your position is not a "merchant", but more like a "subcontractor" - you make your designs and you get paid a commission for each products they (Teespring) sold. This means, they are the ones that must pay the sales tax, not you. This is different than owning your own Shopify store and selling POD products through there. Printify has a video somewhere on TH-cam explaining this topic. It's pretty complicated, especially for international sellers, because unlike most countries where you only have a single tax nexus, the US is a federation of states, so each state gets their own nexus. And you, as the seller, have to keep track of this, and pay sales tax to each separate state you have a nexus in. This is also the case with Etsy.
This is also why I decided to go with Teespring first. All those tax systems sound complicated, and frankly, daunting.
Thanks for the comment Mario! This is extremely well said.. I agree 100%. Thank you for sharing this for others to read!
but where do i pay income tax or does it do automatically?
@@GOATS10M No, you pay your income tax to your own government. What Teespring pays is the sales tax, not income tax.
@@marioprawirosudiro7301 and where do i pay that?
@@GOATS10M Well, your local tax office. As usual.
Or at least, where I'm from, people usually pay at their local tax offices, or through a designated bank. Is it different in your country?
Dude, you're my hero. Taxes and paperwork was the only thing keeping me from pursuing my art purpose. I'm 27 years old, and I've realized that I've been working in the wrong industries most of my 20's. I found myself happy in college studying art and design. Now with this knowledge on biz, I can be confident selling my artwork. Again, thank you for your content, you're changing lives!
This is so awesome to read.. Thank you for taking the time to write this Gabriel, I'm glad this helped, and good luck!
huh XD
You can also use Schedule C (on your 1040 personal tax return) that way you can include your expenses as well, and local court fees to open Sole Proprietorship is minimal.
That is how I went about doing it. I recommend for printful* to open a business bank account so you can use a business credit card because they pull the money for the shirts as soon as you get an order then you get the profits 2-3 business days later. Don’t want to get caught with no money to fulfill orders
And to think I was scared of this issue. You made it sound easy
I'm glad this video helped! Let me know if you have any questions at all as you're going along!
@@GregGottfried +im still scared. i am following ypur tips to open a pod store but i guess i will have to check how the taxes thing work in mexico. by the way, you always recommend etsy to look for inspiration, but not as a way to sell tshirts... why?
@@damiaguirre3139 yeah i am afraid of the taxes too it is not fair so you get about for example 4 dollars for a t shirt and then you still hav e to pay taxes i do not understand this
Brilliant explanation of how to pay taxes in print on demand and setting bank accounts and companies! Now I am all set to go for the print on demand business!
Excellent! Thank you for taking the time to comment and for the support! I really appreciate it and as always if you have any questions at all, feel free to reach out anytime!
@@GregGottfried Yes will do bro
lol @@CIOZimbabwe
You are truly a selfless angel on this earth.
my dream is to become as good as you.
Best wishes for your future and may you succeed in your life.
Thank you so much, it means a lot to hear that! If you have any questions as you're going along just let me know!
People on Quora are saying that you cannot begin selling without running ads is it true.
Not true, I've done it both ways :)
@@GregGottfried thank you😁 also there are some source which is saying that POD industry is getting saturated what are your views on this.
Greg! Thank you SO much! I have been fretting about this since I Started POD and could find almost no info anywhere about how to claim this on my taxes in the US. I had seen another TH-cam video from a lawyer that said you could definitely claim it on your personal taxes but there were no details about how to fill that out! You made it so clear what to do! I always do my own taxes with TurboTax and really didn’t want to have to have them prepared professionally. This eased my mind and now I know I can do my taxes with no worries. Thanks for talking about what nobody else seems to want to talk about!
Excellent! I'm glad this video has been helpful! Thank you for taking the time to comment and for the support Gail! I really appreciate it and as always if you have any questions at all, feel free to reach out anytime!
Love how you have a tl;dr at the beginning
It made me want to stay till the end even more
Thank you! I try to make these videos how I would want to watch them, short and sweet with no fluff. I appreciate you taking the time to show support. Thanks again!
I appreciate the clarity that came with how this video was delivered! You were pretty easy to follow. Thanks!
Thank you!!
Well, I’ve had a LLC and in the state of California it was $850 a year to maintain. I wouldn’t recommend it unless you are making a full time, livable wage from your business..
THANK YOU! I only get to keep about $3-$11 per sale (even though the item costs $35-$60 so I didn't know how I was taxed). Now, I know it is just off the profits.
Awesome video thank you! Do you set aside a certain portion of your earnings for taxes, once they start becoming substantial? And when you price your items should we make them higher because of sales tax or VAT or anything like that? Do you have any videos regarding those things? Thank you again for wonderful and easy to understand vidoes!
Okay I don't want to run his video's at 2x speed like i do it for all others because all his content is so upto the point and valuable..
Can't thank you enough Greg
Please take out some time and give him a positive comment for his video's to encourage him & keep doing such valueable content for us....
You made it so much easier tl understand!!! First time filing tax with side hustle POD. Thank you so much!
I'm using Printful on my own website and setting up taxes is BEYOND complex. I wish it was as easy as your explanation.
You’re the man bro. Thank you. I have been looking for this info and finally found it. Thanks. Hope your doing well
Thanks for the support! 👍 You're welcome! I'm glad it was what you were looking for!
Thank you so much Greg!!! I really appreciate all the information that you give... You just answered the number 1 big question that I've had in my head all week. Its a relief to know that a personal pay pal account is acceptable!
Solid info Greg! I bought a few of your courses on udemy and I'm looking to start branching my business into e-commerce this year! Looking forward to what 2020 has to offer for you as well!
Right on! Thank you for taking the time to comment and for the support! I really appreciate it and as always if you have any questions at all, feel free to reach out anytime!
Thanks so much for this. I was so worried I would have to do a lot of tax learning selling on POD. This has helped my headache 😆
Hi Greg, thanks for all the great info. I was setting up my accounts and I read that RB does not distribute the sales taxes and that it's up to you to forward those to the appropriate agencies. How do you handle that?
yeah where i can find my local taxes cuz i live in BUlgaria for example
Hello, I am in Canada and would like to know if there is any major difference i should be aware of?
definitly you are the one who inspires the most confidence by far . thank you Greg for your extremly helpful channel . best...
ayo
I'm in CA and we're told we have to have a sellers permit to sell anything anywhere even online. I am checking to see if this is still true.
Ok great, let me know what you find if you don't mind. How I understand it is since we are just the "design creators" and the POD websites actually create and sell the physical products, we don't need a sellers permit.
Thanks so much for clarifying all this. Really looking forward to more of your videos and getting my side hustle rolling.
Hey Greg, love your work. My question is: What about RB collecting taxes on our behalf? Part of our "profit" is collected by RB as sales tax, then paid to us. Could you clarify a bit? You'd be my hero, lol.
Thank for your great videos. Please can you confirm that the sites that you recommend pay over the sales taxes on your behalf. I am looking at going into this type of business but I am outside of the US.
if I'm out of the US and work on print on demand, also I withdraw my money to my local bank account thru Payoneer US account, do I have to pay anything related to taxes to the US or not?
Great question! Yes, local taxes are always required :) Make sure you check your local rules to be sure :)
@@GregGottfried sorry i didn't understand ,i mean if i am not from the US and i work on print on demand or any other type of non-physical business do i need to pay taxes to the us or no ? thank you agian
and also i don't live in the US either
@@youssefkaafarani5649 I have that question too. I live in Brasil. Do I have to pay taxes only in my country or do I have to pay some taxes to the US either?
@@carlosfaccin5476 i have searched and it turned out that you don't need to pay taxes to US since your are not a US citizen , but there is a form called W-8BEN , some print on demand sites may need you to fill this form so they can ensure that your are not a us citizen , and they can take up to 15% of your income.
Thank you!! Great video. Answered pretty much all of my beginner questions. Question: What are all the taxes we as sellers need to be aware of when doing on-demand print in the USA? I can only think of sales tax and income tax. Anything else?
Question. I'm doing etsy and printify. Would i take Esty's yearly amount sent to bank and Minus Printify? like if I made 200k on etsy but spent 100k on printify i would say i made 100k?
HI Greg, I like your videos. Well articulated and short enough to absorbed the info, so well done. Question: For POD, if you are selling nationally, their are different tax laws across different states?. Does we, the business owner have to worry about any business related activities relating to the POD business? or do we, just concern ourselves with paying tax on received income, regarless of where we sell in the States?
Great question. Just the received income because we are not the actual seller of the product, rather we are just the artist getting a royalty it commission on each sale.
Thanks for the awesome content. Regarding POD in Europe, the companies such as Printful now charge us VAT taxes. So not having a business entity we'll have now 21% less profit cause we are forced to decrease our prices. For example an €18 ( €12.50 Printful's price + €5.50 my profit ) t-shirt becomes €26,06 ( €18 the retail price + €3,72 shipping + €4,34 VAT ). That's way more than anyone would pay for a regular POD t-shirt. So in order to have a €5.50 profit, I have to charge my customers €26,06 ..that's worthless!
For Shopify do you subtract the product cost from the sale and only document your profits as taxable income?
This is the video I was searching for and you answered almost all of my questions. I can’t thank you enough. I just have a request if you can explain how to handle Etsy shop and it’s taxes. Thanks again.
Hey, I love the video but I have a few question. Firstly can you collect sales tax under the age of 18. Then let’s say I’m using printful but I do not store products in a warehouse, do I have to collect sales tax? I’m in Illinois but printful is in North Carolina, do I have to collect sales tax? I’m using Shopify to make my online business and putting my logo on clothing with printful, is my nexus in Illinois or Norht Carolina and do I collect sales tax? Thank you, I really appreciate it!
Thanks for this information. This is the most confusing part of starting a business. My question is have you ever done any kind of trade shows where you take some products to sale in person. Would you need a sales and tax permit for that or no?
pourrs-tu re-expliquer et le montrer avec une video sur les taxes. et surtout une video de evnte sur Canva+Printify+Etsy svp?
This was the exact video I was looking for! Thanks soo much!
Thank you so much for the comment! As always, if you have any questions as you're going along just let me know!
Hi Greg, thanks for the info. I have a question. I’m not from the US. But the paypal account I use on teespring is my cousin’s. She lives in the US and has a green card. Do you think she’s the one to be charged for taxes because she has the paypal? I don’t wanna put her in trouble😅
I have two questions... The first being: since technically you'd be considered a sole proprietor (or if you were to set up an LLC) wouldn't you have to pay quarterly estimated taxes? And second: you mentioned just reporting how much income you made, but how do you actually pay the tax on that income? Does the IRS and state bill you after you send in your 1040 or schedule C and you pay the bill or what?
That was a great informative video! Thank You Greg! HAPPY NEW YEAR! Have an Awesome Year!!
Thanks Eric! I appreciate your time to write this comment :) Happy new year to you as well, a lot in store for us all in online business this year :)
Thankyou Greg this is very helpful. I was thinking about this. You are an angel 👼
Thank you for taking the time to comment and for the support! I really appreciate it and as always if you have any questions at all, feel free to reach out anytime!
Bless you a MILLION times over for this! Thank you so much!!!!!!! :)
This mention STATE sales taxes - this is what's complicated about POD.
Great question. If you’re using print on demand marketplaces you don’t have to handle state sales tax. It’s all done by the website. Hope that makes sense 👍
What state are you talking about in regards to taxes because alot of states have different tax regulations and stating what state you are from really makes a difference
Since we are not the actual seller of the product (the print on demand website is) we do not have to deal with the taxes like a product seller would. We are just paid commissions like a freelance 1099 independent contractor would be.
Hi Greg, Im a foreigner here. I want to ask would print on demand allow non US resident? I am seriously learning to start POD but I can't seem to find answer anywhere for this. Thank you Greg!
Hey Greg ,
This is Roger here. I do appreciate you sharing your knowledge about POD, it´s definetely at a course level.
I´m starting my POD business now and I´m kind of concerned about taxes since I´m international and I´m not really sure if I´ll have to pay taxes twice, let´s say in the US and in my country as well. Do you know how people from other countries do in this case?
Thank you very much......you rock!!!
So if I sell via a POD like Redbubble etc. I would not have to report sales taxes since they take care of that, but I would need to report the yearly income on my income tax correct?
What about if you are on Shopify?
Very well presented video, seriously useful and on-point information, thank you very much for helping out Greg!
Great video. I have a question as you mentioned you dont have to establish a business entity as you can just add to your "other income". How about expenses? Ie computer, software or anything else you needed or was necessary in order for your print demand business to generate income. If you dont have a business entity then would you or should I say do you still deduct those expenses?
Hey Greg... I have a question not directly related to this vid: when setting up a teespring store, does it matter if I have my own domain name and url in my campaign that redirects to the teespring site/store? I want to use my own url for branding and to make it seamless to jump platforms if a design hits big, but I don't know if that hurts me toward teespring's marketing or other things that I'm not thinking of. TIA.
Yes you absolutely can forward your own domain to your storefront (for easy changes of link destination down the road). I hope that helps!
Hey, which color are you doing your designs in? Do you do one in white or one in black or do you just make the same design in 2 colors to be able to put it on more colors?
Usually black font first. Then if the design starts to sell well over time, I'll make a white version of different color shirts, and a few variations of the design.
@@GregGottfried Damn, that was fast. Thanks :)
Simple! Thanks for the advice :)
Thank you! If you run into any questions just let me know 👍
Thank you for the information is a killer, and this 2020 is going to be lit..
Greg your the man
Thank you for taking the time to comment and for the support Vinnie! I really appreciate it and as always if you have any questions at all, feel free to reach out anytime! 2020 is going to be great for all of us in online business, the statistics and trends support it :)
Hey ! thank you for your video ! Anyway I have one question I hope you could help me because I havent find many info about that: So I am using etsy only as a POD platform I am living in the Netherlands and my t-shirts I want to sell worldwide. Do I have to pay taxes if my products are shipped for example to USA? and how about EU ? appreciate a lot yourhelp
Great question! I'm not 100% familiar with Netherlands taxes but generally you will only pay your local taxes when you're an international seller. You can sell as many shirts to US buyers though. I hope that makes sense and helps. Thanks!
Hey Greg, do I need to pay sales tax ? I’m from the US. I also hear things on VAT, is that something that applies to a US resident who wants to ship world wide? Thanks so much
Great question! Nope, since we are paid as a royalty/commission, and not actually collecting the payment from the customer ourselves, we don't have to.
Why not do an llc initially. That's why I did not start yet. It takes a little while in my country. Mainly doing it to separate my online payments from business.
Bruh I’m 15 and I’m making a big profit every week and I was scared about this tax deal thanks for helping 😂😂😂
Soo, you dont pay taxes at all or ? Im 17 btw
congratulations man
Im 15 too...
@Daniel Aguilar 4 months ago i asked yeah, i run a SMMA business now buddy making 5-7 k a month dm me if you would like to hear my story!
@@DylanHGN whats ur story
Your video was soooo helpful!!! You answer all my questions like magic :D
Fantastic! Thank you! Great minds think alike :)
Great great video Greg. I do have a question. At what point should we be looking for a W-2 from any of these businesses.
And as always thank you for your contribution to making our lives a little bit easy. Have a great New Year.
Thanks Markess! I can't recall with 100% certainty, but I believe if the site requires a form, they ask for it at sign up. I believe it's a W-9 that they request in the beginning (Merch by Amazon does this only I believe). Since we are not employees, we do not get W-2's. We are responsible to report the taxes on our own. I have a great Tax Prep person who handles all of this for me however I do not recall getting any forms in the mail besides something from Amazon. With so many income streams, it gets a bit hard to remember each one specifically.. Again, I wish I could recall with full certainty but I don't think we get anything in the mail besides possibly a 1099 from Amazon.
Hi Greg, so with teespring is there a specific time frame you have to cash out your earnings within? Does it have to be done by the end of the year for example, or could you technically just let your earnings build up and cash out in say 18 months? Can you choose how much you cash out each time or does it all have to be done at once? Do any other print on demand sites operate like this? Thanks
Great question! Nope, your earning build up for perpetuity and you can payout anytime, you will just pay taxes on the amount you paid out during that tax year. Teespring is the only site that operates like this. I hope that helps!
Hey Greg, great video. I was wondering where I can get the link to my store or to one of my listings. You're great thanks for everything.
Hi Santiago, great question! I just copy to website link when you are viewing your listing or storefront. If you go to your dashboard and click on the listing, or from your dashboard, then storefronts, then view storefront. I hope that helps!
Thanks. You're one of the few people with entrepreneur channels that I follow that actually respond to comments.I really admire that and thanks for the help!
What about people outside of the us?? How can we do if the pod Pages just asks us for business entity or social ID number and we don't have one? Like printify o cafepress does?
I would apreciate any help or advice.
Thanks for sharing your knowledge! Keep it up
Love the video! Question, I'm looking to get started into this, does my paypal email have to be the same as my account for these 3 websites? I'm planning to created a "POD" email separate from my personal accounts & my paypal account email.
I do not live in the US or EU and I do not have a tax ID nor have I configured the tax rate, but if in a given case I make some sales to those mentioned areas, am I committing a crime? Could I go to jail?
good information to know that I was wondering about the other day. haha cool. Thanks for the good information.
Thank you for taking the time to comment and for the support Jason! I really appreciate it and as always if you have any questions at all, feel free to reach out anytime!
I love it Greg I love your videos!
I have a question please. I'm selling on 1000$ each day.
700$ take by print provider and post service, 100$ take by Facebook advertising.
So my net income is 200$ for m 1000$. How I will pay tax, just for 200$? Am I understand correctly?
I'm individual (no LLC) / Missouri
Yes just the $200 but be sure to claim the $800 expenses when doing taxes 👍
Thanks so much! This was SUPER helpful!
Thanks Greg for the great content, I recently discovered your channel, I live in England UK, do you know if I need to pay any tax in US as Teespring is based in USA. Or I just need to pay UK tax.
Welcome aboard! Great question! You just have to pay your local taxes (UK only). I hope that helps!
Hello, I understood how to pay the taxes, but I did not understand which country and which website to pay? (I live in Turkey) thank you!! :)
This video had all the answers to my questions. Very helpful 💯
It say taxes in the video title? How did I miss the part about sales taxes, nexus, etc.?
when you mean paid out, is what you gain in sales at the teespring shop.
What about Printify and Printful? They dispatch mostly from US but what if the shop owner is from a different country?
Hi @Greggottfriend thank you for the great video? Would you be able to speak to how it would look in Canada
Hi Greg should I use my linked Pay Pal email or use new email like suggested? Thank you in advance.
You can use a new email and then use your PayPal email just for the payment connection.
When registering in etsy for print the demand business should i use my name as soletrader or business name
Hey Greg, great, informative video. Would you please also address sales tax?
Sure! Since we are only getting commissions on the sales and not selling, printing, collecting funds, shipping, etc, the products ourselves, we do not have to worry about sales tax. The print on-demand companies themselves are responsible for the sales tax. I hope that helps!
@@GregGottfried Thanks, I appreciate the response.
@@GregGottfried I red point 5 of Redbubble's User Agreement (Appendix A Services Agreement) and it says Redbubble does not collect or pays taxes on your behalf so you have to pay sales taxes, VAT on your own (in fact in every product page the write 'designed and sold by (your username)'). How can we deal with sales taxes around the world !?! (+ custom duties where due)? 😬😬😬 I'm getting a bit discouraged 🥺
What is the ideal laptop to buy I want to get started in POD
Hello Greg! Because I live in a country that doesn’t allow PayPal, can I use Payoneer as a bank account for direct deposit? Thank you!
Great question! Yes you can!
Hi Greg, what about VAT? We need to file VAT returns as well in Europe I think. In POD do we pay VAT? Thanks
Great question! Nope, it's all taken care of for you :)
@@GregGottfried cool. Thanks. I have another question. Could you maybe do a video on how to best add product descriptions and tags. I really struggle with that. Mine sound do bleh and my mind is blank. I hate sales 😊
Hi Greg, I have a question related to sales taxes: Is it required to have a specific tool to 1. calculate and 2. collect the sales taxes, depending on where the sales are made ? or is it already taken care of by Teespring/Merch By Amazon/Redbubble ? Very informative video again. Much appreciated !
hi Greg! When you said e.g. Teespring expenses come as 'Other' in your taxes. This is if you have a regular employed job as well? Would it be considered as freelance work? - Thanks!!
Great question! These are other than your employed job, being listed in Freelance. I hope that helps!
Hi Greg, your videos are great! For the tax issue, how about for non-US person?
many thanks!! What happens if I am in Europe? Can I open LLC without being located in the USA? With POD I understand that you sell worldwide....so I imagine I should open a business in my own country in this case. However here is much higher that the 130$ a year you mention. We are in the thousand dollars.
I don't understand about the taxes does i have to pay the tax to amazon and how
hey man! i had a doubt. since the lowest bracket of taxable income is 10,000 , if i cash out less than that every year from tee spring even though there is more than that in it, will i be taxed?
Hey Greg! Redbubble said they're not in need of print on demand! Is that true? I came to know about last week!
So, you can leave all of the generated income within the Teespring platform for example 2020 and wait to take it out at some point this year? Will you then be taxed for the 2021 year if you do this?
I'm assuming you can't write anything off for "business" for your 2020 taxes if you don't withdraw the income?
Hi Jerryd, Great questions. As far as I understand it, and again not tax advise, both of those are correct. I'd look into it further and ask a tax advisor if the latter is correct, but I think you are spot on. I hope that helps!
Just wondering. I opened a POD business in 2020 and have a lot of expenses to right off, so my costs are a lot more than my profits this year. Start up costs etc. My question is - Customcat charges me 9.00 per t-shirt which I sell for 29.99. Do I write the 9.00 off as a cost (or as an inventory cost) the same way I would an office supply for example. How do I deal with all those customcat charges that I incur in order to make my sale?
Hello, I'm starting my ecommerce print on demand business (drop shipping) and I've only registered for sales taxes only in Florida since that's where I live. I've made no online sales yet. Do I need to register for every state to obtain a resales certificate before I launch my website? I'm worried that if I make a sale online and I don't charge tax, later down the line when I do hit the economic threshold for that state I will owe money.
If I don't need to worry about that now, when should I worry about it?
I started print on demand on some site named printful, I've been clothing out and have brought my product for myself to try, did I sign up for the right thing or no
Hello Greg! You are AWESOME and I really do appreciate your help.
Can you help me with one small thing?
See I am from India, when I was trying to setup my PayPal acct, at first it gave me two options whether I want to setup a personal acct or a business acct, In personal acct I can only send payments and on business acct I can do both send and receive payments, I preferred to setup a business acct and then it asks me for purpose code and I cannot find anything relevant to POD business in that section what should I do now?
Please help?
I’m doing teespring under my parents so would i have to do taxes with my name or do it under theirs in other income
Hi :)
Is there an alternative or a way around to to get direct deposit from amazon? i live in israel and they dont do direct deposits here.. (not intested in checks of gift cards)
Thanks for asking! I think Payoneer's US payment service may be a solid option (since Amazon's payment options are so limited).
Doesn't one automatically have 'physical' nexus in our home state just for the fact that we live in our home state? Thus we would have to collect sales tax right away for orders being shipped to our home state.
What about applying the right sals tax when nessasary to your merch?