Taxes and profitability
I'm starting an online general merchandise store as a sole proprietor. To decide if an item is worth adding, I start with the target selling price. I subtract the cost of the item, any shipping I pay for purchasing or selling, and ebay fees. I also subtract federal, state and local tax percentages as well as the self employment tax percentage. What's left I'm considering profit. The only other regular expense I have is shipping supplies and I'm accounting for that and any other extras on a monthly basis. Does this make sense for profitability and tax filing purposes? Is there a better or easier way to go about it?
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