Dropshipping with Shopify Payments in USA, KY

Dropshipping with Shopify Payments in USA, KY

Lou_KY
Visitor
2 0 1

Greetings,
I am new to dropshipping and I need some questions answered before I begin

 

I reside in USA, Kentucky Louisville and I am starting a dropshipping business using Shopify Payments

So my first question is, do I need to register my business and get a TIN...or is my SSN enough?

Also how much will I be taxed? 6% Sales Tax & 5% Income Tax...so 11% in total? or 5% or 6%? or 15.3% self-employment (sole proprietor) taxation?

Also, are there specific amounts of revenue in which I may be forced to register my business or pay higher taxes?


 

 

Reply 1 (1)
Lou_KY
Visitor
2 0 1

Thank you for this fruitful answer! My business will be a clothing dropshipping Sole Proprietorship business.
Now I am looking for professionals to ask & doing more research but for now, I believe that I will be subject to income tax of 4% (as my income is $0-$50K), 6% Sales Tax as I am selling tangible products, and lastly self-employment tax of 15.3%...so in total 25.3% till now.
I will however make sure and confirm when I get my answers! However if you can confirm this I would be thankful too