Brand new to this site. Also, this will be my first time using Shopify, though I've built several Wordpress sites and I know something about internet marketing.
I'm working on a site where I'll be selling my own Tshirt/merch designs, ones where I'll own the copyright or have the license for, and I'd also like to sell the designs of other people I know. And when I say other people, I'm talking about potentially 100 people or so (first year or two) with a few designs a piece. I'll sell both my designs and theirs on my website using Shopify and, probably Printful.
I'm hoping for a solution to what I see as a big stumbling block and the thing that's stopped me from moving forward...How do I distribute their shares and how do I handle that for income taxes? I'm thinking I could send them an invoice each month listing what designs of theirs sold and paying them with paypal, but what do I do at tax time? Their income would have to be deducted from mine and I guess they'd have to receive some kind of independent contractor form? Help me here. Is this easy to handle? Is it something I would do or would I need an accountant?
Your thoughts are appreciated. Thanks
Nick here from Shopify.
With taxes, this is something we would recommend you talk to an accountant about. Tax is dealt with differently in every country, because of this, when it comes to setting taxes the best bet is to reach out to a professional such as an accountant or your local tax office. Shopify does have a guide on how to set up the taxes in your store which you can find here and here, depending if you are in the USA or not.
Something which I also think you might find interesting or useful is the Multi-Seller Marketplace app. I thought of this app after you said you were looking to work with others directly about selling items from one place, in this instance, your store. Multi-Seller Marketplace is an app which enables you to convert your Shopify store into a marketplace with multiple sellers (vendors/merchants). It might be worth reaching out to the app directly at firstname.lastname@example.org and asking about the tax inclusion via the app if this is a route you wish to take.
Don't hesitate to ask should you have any other questions. All the best.