I would like to sell my 3D printed items on Amazon, Etsy, eBay, Shopify, etc. I recently discovered that I can avoid paying taxes when purchasing raw materials or business equipment by obtaining a resale certificate. However, on the other hand, I believe that if I register an LLC, I can claim a tax deduction by filing my business purchase invoices as business expenses.
As a complete newbie to the business world and uncertain about my sales volume and the longevity of this venture, I am unsure which option to choose (between a resale certificate and an LLC).
However, since I reside in California, where sales taxes are relatively high, I must avoid this additional sales tax to maintain a reasonable profit margin.
I am aware that an LLC requires an annual fee of $800 in California, but I am unaware of the costs associated with a resale certificate. Please help me by providing any additional business advice regarding the advantages and disadvantages of each option.
Thank you for your assistance.
P.S: I think I can also choose neither of the above options and just claim tax deduction on my personal tax statement but I am not sure if this is a good way and what is the success rate this way!