Back story: So my wife created a LLC here in Michigan for selling signs. We started the business last year. That way we would have a name for trying to sell on Esty. A local shop contacted her about selling her signs in here store. She made a few hundred selling signs thru there store and some of their craft shows. We crunched the numbers and the amount of money she was paid was $529 and some change.
As far as I know if you make less then 600 dollars you don’t have to file. So we didn’t file any taxes with the state as we didn’t make anything. We had a grand or two into the cost of the Cricut and materials and such. So if anything we were quite in the negative. She did a few craft shows and maybe sold a item or two. We decided it wasn’t worth the effort and decided to stop trying.
Today a bill showed up from Michigan treasury. Saying that we owe from 2019. Tax due 5,400.00 Penalty 1750.00 and interest of 148.00.
I’m rather shocked. We didn’t file because we didn’t make anything worth noting. Can someone assist on some advise on how we should proceed? We will try to call the Treasury to try and clarify the taxable amount but I’m really confused. I almost thinking that company said we sold upwards of 30k on their file of our LLC. But this is all new to us. Should we contact them and get copies of what was filed from there end?
Thanks the help
Submitted August 21, 2020 at 07:51PM by vCPU https://ift.tt/2CMZYcc
