I recently registered my small business in Wisconsin and ended up getting a seller's permit in the mail. This started out as a hobby so I did not register the business right away. After registering I got a few bills stating that I owed an estimated $1,000 in tax plus interest and late fees for multiple quarters.
A little background... I opened my Etsy November 2019. I do a decent amount of sales through venmo, cashapp, paypal, etc. I ship to states all across the U.S. I did 8-9k in gross sales in 2019 and 2020 YTD is 20-30k. I get products from China but I also buy from sellers here in the US which I then resell their products. While I am making those amounts in gross sales there are lots of shipping, material, product costs. Am I correct that those expenses only get deducted when I report income on yearly taxes?
In doing some research it looks like I should have been filing quarterly reports on non taxable income. I now have the option to go back and submit these tax reports but the instructions are complicated and confusing. Before I do that I want to confirm that I need my business even needs this type of permit/tax type.
A few other questions... Do I only count income that was not previously taxed (ex: venmo vs etsy)? The WI sales tax is around 5% but I am reading that use tax is also 5%. Does that mean these are combined at 5% or is it an individual 5% that will end up costing be 10% on each sale?
I know each state and case is unique but any advice or guidance is very much appreciated.