# FreeAgent

> Bookkeeping app built for UK freelancers, with no US tax filing.

- Accounting, Starter pick
- Platforms: eBay, Vinted, Etsy, Depop, TikTok Shop, Whatnot
- Orders a week: 0–2000
- Not yet checked by a person

FreeAgent files UK returns only, so it does not suit a US seller. For US books, use the Sage pick on this page, or any app that exports a Schedule C summary for your tax preparer.

## A UK tool, listed for comparison

FreeAgent is built for small businesses in the UK and connects to UK banks and the UK tax office. It has no US edition, no 1099-K import and no Schedule C report.

If you sell on eBay, Poshmark or Mercari from the US, skip it and pick a bookkeeping app that supports US accounts and tax categories.

## Features a US seller would miss

Invoices, receipt scanning and bank feeds all exist in FreeAgent, but the bank list and tax forms are British. A US checking account will not connect.

Sales tax on US marketplaces is collected by the platform in most states, so your books mainly need income, fees, shipping and cost of goods. A US app sorts those into the lines your tax return uses.

## Setting up US books instead

Open a separate checking account for selling, connect it to a US bookkeeping app, and add categories for inventory, shipping labels, supplies and platform fees.

Download the yearly sales report from each platform in January. Your 1099-K, if you get one, shows gross payments, so you need the fee and refund totals to reach your real profit.

## Sage, Xero or QuickBooks for the US

Sage, the fallback here, serves small US businesses. QuickBooks is the common pick among US tax preparers, and Xero suits a seller who wants a cleaner bank reconciliation screen.

All three charge a monthly fee in the US; compare the current plans on each site before you start the tax year.

## Filing your US return

Most home sellers report resale income on Schedule C with their Form 1040. A bookkeeping app gives you the totals; you or a tax preparer file the return.

The IRS 1099-K reporting threshold has changed several times, so check irs.gov for the current year before you plan around it.

## Common mistakes

- Signing up for a UK app from the US leaves you with the wrong tax forms. Pick one with US support.
- Treating the 1099-K total as profit overstates your income; subtract fees, refunds and the cost of what you sold.
- Mixing personal and selling spending in one account makes January slow, so open a second checking account.
- Skipping receipts for inventory loses your largest deduction. Photograph each one when you buy.

## Questions

### Does FreeAgent work in the US?

No. It supports UK businesses and UK tax filing only.

### What should a US reseller use instead?

A US bookkeeping app such as Sage, QuickBooks or Xero, or a spreadsheet if your volume is small.

### Do I need bookkeeping software to sell on eBay?

Not at low volume. A spreadsheet of sales, fees and costs works until the monthly reconciling takes more than an hour.

### Does my platform handle sales tax?

In most states, marketplaces collect and remit sales tax for you. Your state revenue site confirms the rules where you live.

### Will I get a 1099-K?

Platforms send one when you pass the IRS threshold for that year. irs.gov lists the current figure.
