Wisconsin Statutes & eBay Sales

By Prev Info - October 17, 2022

 The state of Wisconsin maintains no specific statutes related to the sale of goods and services on the eBay auction site according to the Wisconsin Legislature website. Further, the state has no statues related to e-commerce sites in general. There are, however, requirements in the state of Wisconsin for all businesses that also apply to an eBay business.

eBay Sales

eBay Business Names in Wisconsin

If you are selling on eBay in the state of Wisconsin, then you have a business within the state. Unless the business is operated as a sole proprietorship under your legal name, you must register the business name with the state. A "Registration of Firm Name" form filed with the Registrar of Deeds in your county is one way to register. Another is to file for a trade name with the Wisconsin Secretary of State.

Sales and Use Tax on eBay Sales in Wisconsin

The State of Wisconsin Department of Revenue suggests that you apply for a sales and use tax permit at least three weeks before opening your business. If your permit is not received before opening your business, you are still liable for the collection of tax on all items shipped within the state of Wisconsin. eBay Sales to out-of-state locations do not require the collection of sales tax. However, detailed records must be maintained to back-up your sales tax claims.

Employer Identification Number (EIN)

The state of Wisconsin also states that you should apply for a federal employer identification number (EIN) to use when filing paperwork. If you regularly purchase goods through wholesalers to list on eBay, an EIN or your Social Security number are typically required as a means of identification and for tax purposes. Having an EIN allows you to keep your social security number secure while not limiting your eBay business potential.

Wisconsin State Income Taxes

Your eBay sales are taxable when you operate a business. An eBay based sole-proprietorship claims income and deductions on federal tax form Schedule C. Information from Schedule C is attached to the main tax forms 1040 or 1040A. When you file your state taxes with Wisconsin, you use Form 1, which has you copy information over from your federal return, such as your adjusted gross income, to calculate your state tax payment or refund. If you file through the mail, you must include a copy your federal income tax return.