Hopefully someone can help out :) I've tried Googling, with no luck.
I set up a Shopify site to sell some stuff I was making. I wasn't expecting much money, so I just connected it to PayPal. There is no business registered or anything like that.
I ended up making over $100k revenue / $40k profit in the past 3-4 months, and I'm not sure what to do for personal taxes. All the profit is still in the PayPal account; I've paid out about 60% of the revenue for supplies.
Basically, I accept money via PayPal on Shopify, and pay vendors for supplies out of PayPal, so the money in my PayPal is my "profit". I'm really afraid this is going to screw me over when I do my personal taxes!
My biggest worry is either not paying the correct taxes and hurting myself later, OR ending up paying taxes on the $100k revenue (rather than just the profits). How does this work? Do I just pay sales tax, or is it also taxed as my personal income? How do I "write off" supplies (do I need to get a W9 from our suppliers)? Will PayPal or Shopify send me a 1099k or something?