Understanding Taxes

Disclaimer: Please note that Whop is not qualified to provide financial or tax advice. We strongly recommend consulting with a Certified Public Accountant (CPA) or a professional tax advisor for guidance on your specific financial and tax-related matters.

What taxes does Whop file on my behalf, if they are my Merchant of Record (MoR)?

Whop, as your Merchant of Record, will strictly handle the filing of your sales taxes. However, you, as the seller, will still be responsible for all other tax filings you are required to submit. This includes, but is not limited to, income tax, franchise tax, and more.

What tax forms can I expect to receive when Whop is my Merchant of Record (MoR)?

For each payment processor you choose to enable, Stripe, PayPal, or Whop Payments, you must meet a minimum threshold by the end of January 2024 to receive a 1099-K.

The minimum threshold for receiving a 1099-K tax form from Stripe, PayPal, and Whop Payments is $20,000 in gross receipts and at least 200 transactions.

Note: This threshold will change in 2024 per IRS guidelines.

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