Sales Tax

BSG MARKETPLACE will collect and pay all sales tax on your behalf. While in many cases, creating a separate entity for your business is not necessary, for those who do have an entity and are required to file monthly sales tax reporting, please report $0 in sales for the portion of goods sold at Bespoke Signs & Gifts 

Rent is due on the 1st of each month. BSG MARKETPLACE will take out the rent payment and applicable fees from the previous month’s sales. If there is a balance, we will send an invoice and the credit or debit account you provide will be charged for the balance automatically. In the event the credit or debit card is declined, the balance should be paid promptly. Once defaulted, your account will be turned over to a collection agency for them to handle from that point on. This may impact your credit score. A 10% commission on total sales will be deducted from each payout which is primarily used to cover the costs of the sale like bags, and staffing. Payout will be issued on the 1st of the month. The amount will be your total sales, minus 10% commission, and the next month’s rent. Checks can be picked up at the check-out desk on the 2nd of the month. Should the payout happen during a weekend, checks will be available the following Monday.

Payout will be calculated and checks will printed on the 1st of the month. The amount will be your total sales, minus 10% commission, and the next month’s rent. Checks can be picked up at the check-out desk on the 2nd of the month. Should the payout happen during a weekend, checks will be available the following Monday.

We do not provide 1099’s to Co-Retailers (vendors)

As a general rule, “you must issue a Form 1099-MISC to each person to whom you have paid at least $600 in rents, services (including parts and materials), prizes and awards, or other income payments.” In this case, Bespoke Signs & Gifts does not pay rent to vendors, you pay rent to us. 

BSG MARKETPLACE provides a service to our vendors (You don’t work for us, we work for you!). Bespoke S&G Marketplace does not give out prizes or rewards, but we do payout for merchandise sold every month. This often leads to confusion as it seems to fit into the “Other income” category. A careful reading of the 1099-MISC specific instructions from the IRS website found at https://www.irs.gov/forms-pubs/about-form-1099-misc

When it comes to taxes:

1) Keep track of your sales, rent, and fees yourself using the settlement report that comes with your check at the end of the month. Add up all the reports for the year and report your sales and expenses to the IRS.

Exceptions

Some payments do not have to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include all of the following...

Payments for merchandise, telegrams, telephone, freight, storage, and similar items. “

BSG MARKETPLACE  payments to vendors at settlement constitute payments for merchandise, therefore these payments do not have to be reported on a 1099. This does not mean vendors are not responsible for reporting their sales or income to the IRS. How you report your sales revenue is conversation each vendor should have with their tax professional. We provide the monthly Settlement reports and the Financial Summary report so that you can report all the relevant information on your taxes.

As with much of the tax code, this topic can be a confusing one, which is why many markets do things in many ways. Furthermore, all the material prepared above is for general information purposes only and does not constitute legal or tax advice.

We hope this will bring some clarity to any confusion on the topic. If you would like a copy of the Financial Summary report don’t hesitate to ask our staff.