I have a sales tax id #, but i wonder if a paypal business account costs or is it free?

Jeff

I was going to see what was said ... I’m just a sole proprietor W/O any EIN #
Tim

Income that you earn online will be claimed as personal income when starting out. It will depend where you are located in the world as to what tax rules apply, but it will be based on your local tax rules and regulations. It is typically going to be claimed as personal income or "sole proprietor".

But yeah, you are responsible for claiming any income you earn. As for setting up a business and running income through a business, this should be something that is considered when you start earning $50K-$100K per year, not before that.

Good to know, Kyle, thank you.
John, just as Kyle said, you are classified as a sole proprietor, which all earnings you file as personal income regardless of where the funds came from. I recently filed through my state and city as a home-based business. The cheapest and easiest form is the sole proprietor status. I file quarterly with the state for taxes. A pain but it makes all my business expenses tax-deductible, which over the course of a year saves me about $2200. As a sole proprietor, my personal assets are in jeopardy if I were ever to be sued. Filing as an LLC corporation secures your personal assets from any court proceedings, but is a little more complicated with state regulations. Good question. Much Success to you.
Ken

Thanks Kyle
Tim

John,

I use my personal paypal account for all my ebay transactions and even bill out for certain locksmith services since I no longer take credit cards.

Jeff

Sometime in the future, I may change to a LLC, yet right now the income is not great enough to do anything other than use my name and a schedule "C" here in the States.