Sorry if my question is confusing? Let me try to break it down.
First we buy finish product and sell it on eBay and Amazon. Of course smaller profit. We receive 1099K from eBay and Amazon. We file tax - business income. No wage (W2). Our income is lower because buy and selling a finish product.
Now we evolve to buy raw materials and making parts ourselves by hand. This yields a much higher profit since intensive labor needed.
Would giving a monthly wage (W2) to ourselves make any difference?
Reason I ask because if we file our taxes the same way (buying and selling a finish product) the 1099K amount does not reflect any labor added. It just looks like the Business is making much more money. Leaving out labor.
any advice is appreciated,
