Okay im going to try to explain this question in the best way i know how.
so i dont use shopify payment. because im not a registered business and im trying to avoid paying taxes since im just starting
i set up manual payment via cash app
will shopify still track and report my collected cashapp payments to the irs?
i hope yall understand what im asking.
Hey there, @Lilianaln
Bo here from Shopify Support!
Thank you for reaching out regarding this question. In short, Shopify will not record or report anything to the IRS without you setting up your tax settings in Settings > Taxes. However, I would highly discourage you from starting up your business in this fashion as you could wind up getting in trouble with your local tax authorities regarding this. You should, before starting, register yourself as a sole trader at the very least. You should also be collecting taxes, recording them, and paying them accordingly. I would highly recommend reading our general set-up steps and tax reports guide from our Help Center here and our guide to taxes in general here. Not registering your business and not paying taxes is not something that we would ever recommend and I strongly discourage you from doing so.
As this is your first post in the Shopify Community I would like to welcome you! Welcome! I would recommend reading our guide on getting support from the Shopify Community here so you are best equipped when looking for support through these forum boards. I would also recommend taking a look at our introductory guide to Shopify here in our Help Center. The Help Center is packed with brilliant resources on everything Shopify-related to help you get started.
What is it that you are planning on selling with Shopify? I would love to know more about your business so that I can provide more specific resources to help you get started.
In the meantime, as you are getting prepared to launch your store soon I would definitely recommend taking a look at our Essential Shopify Store Launch Checklist before going live to make sure you don't miss anything. We also have this great Buyer Trust 101 post which goes through how to make your store more trustworthy to customers so that they will check out.
All the Best,
thank you for your reply but i dont think you completely understood my question.
If i am accepting cashapp as manual payments will it go towards my total earning in my dash board and will i have to report it as earning on my taxes at the end of the year?
also could you elaborate more on how could get in trouble with my local tax authorities? Because i am not accepting/ charging taxes on my products.
My tax expert said if i am not registered it would be better to accept like cash or cashapp so it would be considered person to person instead of business services.
Hey again, @Lilianaln
If you are accepting manual payments these payments will appear in your dashboard. If you have set up your store to collect 0% taxes then no taxes will appear in your dashboard. You are not required by Shopify to report any taxes and Shopify will not report taxes on your behalf.
All the Best,
Shopify will still record your earnings, whether or not you use Shopify Payments or not. This is essential for your own analytics and reports. You can learn more about reports and analytics here. We will not, however, record/collect any taxes if you have your account set up to not collect taxes. All of this data is yours, we do not report it or send it to any third-parties.government parties. This is the responsibility of the account owner.
All the Best,