I may be running a tent at the Logan, Oh Washboard festival. They've given us permission to have multiple artists in one booth. What is the best way to handle sales transactions? If we run all of them through my square up, am I on the hook for income tax for other people's sales? If I file the state sales tax for all the sales combined, does that then create a trail showing that I have more income than I would report for self-employment? Technically, we would need an entirely separate bank account/ business entity to do this right, wouldn't we?
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From the contrarian: I've run sales for other artist but also kept hard copy notebook of retail, tax and total. Cut check to them at end of show less sales tax, banlk fees, and small fee for my trouble. Reported in my accounting as "subcontarctors".
It would be in everyones best interest to have their own square account. A square account is easy to set up
Yes, this is what I was trying to get across. Whether it's with a Square, Etsy or Paypal reader, or cash only, etc., everyone needs to complete their own transactions.
It's not only the questions you raise about collecting/paying taxes but also the credit card fees. It makes sense, at least to me, to have each artist perform their own transactions, however they choose to do them. It cuts down on paying taxes and fees that are not your own, prevents having to collect fees/taxes from others. If the other artists are my friends, I'd rather keep all transactions separate and keep them as my friends.