Greetings All,
I hope this is in the right spot to ask this question. I am starting a new business online selling items for people through consignment. I get 20% after paypal fees and they get the rest. This business will be ran under a sole prop at first during the start up phase to test the waters and see how it works.
My question is when I sell the items for the person and pay them their cut..who is responsible for their taxes? Obviously I am responsible for keeping track of my income (20% cut) and expenses (site hosting etc) for my personal taxes, but am i responsible for any of their taxes at all?
Thanks,
Mairek
I hope this is in the right spot to ask this question. I am starting a new business online selling items for people through consignment. I get 20% after paypal fees and they get the rest. This business will be ran under a sole prop at first during the start up phase to test the waters and see how it works.
My question is when I sell the items for the person and pay them their cut..who is responsible for their taxes? Obviously I am responsible for keeping track of my income (20% cut) and expenses (site hosting etc) for my personal taxes, but am i responsible for any of their taxes at all?
Thanks,
Mairek