Anonymous
Anonymous asked in Business & FinanceTaxesCanada · 3 months ago

How do taxes work when selling a clothing brand?

I'm starting a business that sells clothing, probably on Shopify. At what point do I pay taxes and charge taxes on the clothing? Do I need a certain amount of sales within a certain amount of time to pay them? 

2 Answers

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  • 3 months ago
    Favorite Answer

    At the point when you start selling.

    You have to start charging sales tax the very first time that you sell in your state.  Even if you just make $1 of sales in your entire life, you still have to charge sales tax on that dollar.

    If this is your only income, then you have to start paying federal tax when you make $400 in a year.  However, if you also have enough income from another source, then you have to pay tax on the income from selling, even if it's just a dollar.

  • Anonymous
    3 months ago

    You're going to lose your butt.

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