Do I have to be a business to pay people to write articles for me?

7 replies
Hello,

I want to pay people to write articles for my blog, but I don't really want to start a business as that costs about $300-$400 in my state. So, I think that means I can't hire them as Independent Contractors. Can I just pay these people out of my personal bank account? I think I read somewhere that the tax man doesn't care about you if you're making less than $600 a year. Do they care about you if you're paying people more than $600? I'm not sure how I could be legally liable for anything too risky when I'm just asking them to write articles from their home. I've used odesk and elance before, but with the fees I end up paying $4 for a non-native English speaking person to write an article. I'm trying to cut costs and have found that a lot Americans will write for $4 an article from craigslist and indeed. I just want to cut out the middle man and not go through some article writing service or odesk and elance.

Thanks!
#articles #business #pay #people #write
  • Profile picture of the author David Beroff
    First of all, never take tax advice from someone who's not qualified. That includes random strangers who post on an anonymous Internet forum, including myself.

    Your post suggests that you're from the United States, although you don't state where, so the best I can offer is the big picture from a federal perspective; you'll have to check your individual state and local tax laws. (I'm from Pennsylvania, where you'd need to file, even if you only made $30 in one year.)

    Yes, you can pay people as independent contractors without forming a business. You would file a Schedule C to declare your profit or loss as a Sole Proprietor. You might want to check the laws or call the IRS, but I believe they do care, (in the sense of wanting their share), even if you're making less than $600. In fact, you may actually find it to your advantage to file, even if you're making a loss.

    When you pay independent contractors $600 or more per year, you need to issue them a Form 1099-MISC, whether or not you are a business.

    Originally Posted by Daveguy View Post

    I'm not sure how I could be legally liable for anything too risky when I'm just asking them to write articles from their home.... I'm trying to cut costs....
    I'm no fan of the government, but I've found that when money changes hands, they do seem to be interested, and they do want their cut. Nothing wrong with wanting to do things inexpensively, but when it comes to tax advice, you get what you pay for. If you don't want to pay a tax advisor, at least research these basic laws yourself; see my first paragraph above.
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  • Profile picture of the author CPABeyondNetwork
    Well you have few options, you don't need to have business. You can find people near you who are very experienced in writing, pay them with cash. You can find people on forums or freelance sites and just send them money. No one will hunt you down for that, don't worry.


    Best regards,

    CPA Beyond
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  • Profile picture of the author batoulemohd
    Originally Posted by Daveguy View Post

    Hello,

    I want to pay people to write articles for my blog, but I don't really want to start a business as that costs about $300-$400 in my state. So, I think that means I can't hire them as Independent Contractors. Can I just pay these people out of my personal bank account? I think I read somewhere that the tax man doesn't care about you if you're making less than $600 a year. Do they care about you if you're paying people more than $600? I'm not sure how I could be legally liable for anything too risky when I'm just asking them to write articles from their home. I've used odesk and elance before, but with the fees I end up paying $4 for a non-native English speaking person to write an article. I'm trying to cut costs and have found that a lot Americans will write for $4 an article from craigslist and indeed. I just want to cut out the middle man and not go through some article writing service or odesk and elance.

    Thanks!
    If you want to hire anyone, you should use any freelancing market place. You can use Upwork, Elance, Freelancer, Fiverr or others site like this. In this case you can use see the terms & conditions of the site, which site you want to use. On the other hand if you want to hire personally without any site, you can pay him by Paypal, Skrill or, International CHEQUE. Thanks a lot.
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  • Just target specific people in your niche, and reach out.

    One great place to find people in your niche with expertise is though 'Twitter'
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  • Profile picture of the author Sid Hale
    Hey Dave,

    The first response (David Beroff's) was right on the money.
    (I'm not sure any of the others understood the question)

    In essence, a Sole Proprietorship IS a business but you don't need to file separate corporate tax returns.

    It can be better (for your own accounting purposes) if you keep a separate bank account for that business, just so you don't lose track of expenses that can be deducted. Come tax time, you don't want to miss any of those!

    You'll need to file one additional form with your personal tax return

    SCHEDULE C (Form 1040) 2014 Profit or Loss From Business (Sole Proprietorship) Department of the Treasury Internal Revenue Service
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    • Profile picture of the author David Beroff
      Originally Posted by Sid Hale View Post

      The first response (David Beroff's) was right on the money.
      Thank you.

      Originally Posted by Sid Hale View Post

      (I'm not sure any of the others understood the question)
      LOL... Yeah, I didn't want to say anything, but....

      Originally Posted by Sid Hale View Post

      It can be better (for your own accounting purposes) if you keep a separate bank account for that business, just so you don't lose track of expenses that can be deducted.
      Thanks, Sid. I had meant to mention this, too, when I wrote that, and then just plain forgot. Glad you brought it up!

      Originally Posted by Sid Hale View Post

      You'll need to file one additional form with your personal tax return
      Well, let's not forget there's also our good friend, the Schedule SE. It doesn't have to take much prep time, but it can sure yield quite a sting!
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  • Profile picture of the author Daveguy
    Thanks for your responses everyone! Forgot to mention that I'm in Ohio. I knew about the 1099-MISC, but haven't heard of the Schedule C. I'll read in to those. Thanks for the help!
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