Will I have to file or pay taxes for drop shipping products?

Question

I recently started drop shipping some products on my website. Do I have to file taxes? The products ship out of Georgia and I am located in Wisconsin. Also should I LLC?

Answer 1

Deliveries to WI are taxable.  Your location and the delivery location are what matter, not the location of the shipper.

Don't waste you money on an LLC.  It won't save you any money and may well COST extra both in taxes paid and tax preparation.  You're in a low risk business so there's little need for the limited shield of your personal assets that an LLC provides.