Tax information: The proprietor is responsible for every transaction. What that means is that your debts, liabilities, income, and losses are taxed on your personal income tax return at normal rates. You also are subject to payroll taxes and self-employment taxes on the money you earn. Partnership — A partnership is where two or more people are the owners and have equal shares in money spent and earned, like Ben & Jerry. Although partnerships are easy to form and may be cost-effective, every member has shared liability. You can vary this legal structure by having a limited liability partnership, or LLP, which protects business partners from the actions of others if a business goes south.
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But when things are really starting to lift off, you could look at other solutions. Another company can store and send your orders for you. This is called ecommerce fulfillment. There are businesses specialized in doing this: storing and fulfilling orders for others. Large marketplaces like Amazon, for example, also offer such fulfillment services. Again, do your research and try comparing several e-fulfillment service providers to see which one suits you best.
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