I realize some of my questions might span a bit into a different parts of the forum, but am hoping they can be answered with this post.
- I'm creating a t-shirt store, and using Printful for fulfillment. Will orders be completely seemless and processed directly with Printful once the customer places them in my store as long as I have the automatic fulfillment selected in Shopify admin?
- Since I'm using Printful for fulfillment, will my address, or Printfull's address be displayed on orders, and how are returns handled? Will customers send returns to me, or Printful? If returns are sent directly to me, can I be reimbursed for the return too, or is that considered a loss?
- When a customer places and order, how is the payment distributed? Will I receive all of the payment, then pay a portion to Printful for their costs, or will Printful be paid their costs and me just paid my profits?
- If payments are distributed in a way where I recieve everything, then pay Printful for their service, for taxes isn't it going to look like I'm making e.g. $100,000 instead of just $40,000? If this is the case, I'm hoping that $60,000 is a 100% write-off?
- In regards to the sales tax for each product that is charged in the store, this depends on where the customer is, where I am, or where Printful is located? I'm assumign that it's completely separate from taxes on my earnings. Where is that paid to if it depends on where the customer is located, and do I really have to pay money to each state that collects sales tax? How are those states really supposed to be aware of who's making a purchase online? Do I have an option of not collected tax at all similar to how other online stores don't? I'm not a fan of government.
- Since I'm not a fan of government, is registering my business name mandatory? I'd prefer to keep my business and store unregistered, just as I wish my parents never branded me with a SS# and birth certificate to make me property of the state.
Trevor the Guru here!
I'd be happy to provide some insight into your questions! I'm going to break down each answer in point form to keep things organized. :)
I hope that provided some clarification on how Printful works. If you do have any questions specific toPrintful, I would suggest reaching out directly to their support firstname.lastname@example.org! If you have any questions about what I went through above, please don't hesitate to reply back and I'll happily help out!
All the best,
Hey Anthony! Congrats on opening your first store.
Printful has locations in California and North Carolina. This means that if you have them ship an item to a customer in CA or NC, they will charge you sales tax unless you have submitted a resale certificate in your Printful account.
Most states, including North Carolina, will accept your home state sales tax license as your resale certificate. However, California only accepts a California sales tax permit as a resale certificate. This means that if you don’t want Printful to charge you sales tax on your orders that are shipped to your buyers, you’d need to register for a California sales tax permit and begin collecting and remitting sales tax in California yourself.
While this is your business decision to make, it pays to look at your numbers. California sales tax is generally 7.5-9%. If you don’t make many sales to California, you may choose to absorb this cost. But if you make many sales to California, you may decide that losing 7-9% on each sale isn’t worth it and choose to register for a California sales tax return and collect sales tax from your California customers.