- Automated tax calculation for sales, payroll and federal
- Reminders on taxes and compliance filing
- Tax ready reports with P&L, expenses and balance sheets
- Instant access to top tax consultants for Shopify businesses
- Proficient counsel on Shopify seller specific tax frameworks and tax-efficient strategies
- Minimizing tax liabilities and maximizing deductions
- Stay up to date on dynamic tax laws and regulations impacting Shopify sellers
Tax related FAQs for Shopify businesses
Do I need to pay taxes for my Shopify store?
Yes, in most cases, you are required to pay taxes on your Shopify business income. The specific tax obligations depend on your location and the nature of your business. Consult with a tax professional to determine your exact tax liability. Income earned from your Shopify store is generally subject to income tax, and if you're in the United States, you may also owe self-employment tax.
How do I collect and remit sales tax on Shopify?
You can set up sales tax collection in your Shopify store by configuring tax settings based on your business's location and where your customers are located. You will need to determine whether your state or jurisdiction requires sales tax to be collected. Consult with your local tax authority or a tax professional for guidance on how to properly collect and remit sales tax.
Can I deduct business expenses for my Shopify store on my taxes?
Yes, you can deduct legitimate business expenses related to your Shopify store. These may include advertising costs, shipping expenses, software subscriptions, office supplies, and other necessary expenditures. Keep detailed records of these expenses, such as receipts and invoices, to substantiate your deductions.
What's the difference between a sole proprietorship and an LLC for tax purposes?
A sole proprietorship and an LLC are taxed differently. In a sole proprietorship, your business income is reported on your personal tax return, and you are personally liable for business debts and obligations. An LLC, on the other hand, can choose to be taxed as a pass-through entity or a corporation. The tax treatment can affect how your business income is reported and the extent of personal liability. Consult with a tax professional to determine the best structure for your business based on your specific circumstances.
When are tax deadlines for Shopify businesses?
Tax deadlines vary depending on the type of taxes you owe and your location. Income taxes are typically due annually, with the deadline usually falling on April 15th in the United States. Sales tax filing deadlines may vary and can be monthly, quarterly, or annual, depending on your location. It's important to check with your local tax authority or consult with a tax professional for specific deadlines and requirements.
What should I do if I receive a tax notice or audit for my Shopify business?
If you receive a tax notice or face an audit, it's essential to respond promptly and seek assistance from a tax professional. The specific steps to take may vary depending on the nature of the notice or audit. A tax professional can help you understand the issue, gather necessary documentation, and work to resolve the matter with tax authorities. It's important to address these situations promptly to avoid potential penalties and fines.
Making payroll painless for Shopify businesses
Our comprehensive payroll features help make payroll management super simple.
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Off Cycle payroll and flexible payment schedules
Next day direct deposit
Payroll Deductions and Garnishments
Overtime and reimbursement calculations
Payroll and taxes across multiple states
Payroll for FTEs, contractors and freelancers
Payroll taxes and compliance
We take care of taxes and compliance to adhere to the local regulations and government declarations.
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Automated tax calculation
Tax filing and reporting
Tax codes and regulation updates
Multi jurisdiction compliance
Tax liability tracking
Work Classification Compliance
Wage Garnishments and Deductions