14 replies
Both suck.

So now that I'm full time online and taking on clients and such, I am going to have to start taking my taxes more seriously.

I figure this is one of the best places to ask: How do you pay your taxes as an Internet Marketer?

This is all new to me, so I don't know if I need to be incorporated or what. I've seen one ebook on it, but I haven't bought it. What do you guys do? What would you recommend?

Thanks!
#death #taxes
  • Profile picture of the author LB
    This question gets brought up weekly, sometimes daily.

    The right answer is always to talk to an accountant and potentially a business attorney. ALWAYS.

    These people do this for a living and can recommend what sort of business structure you might need in addition to handling all the paper shuffling for you.
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    • Profile picture of the author Brawnydt
      Too true. Thanks.
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  • Profile picture of the author AngieRammer
    LB is right on the money.

    However -- you can find some good information on a WSO I saw running recently:

    http://www.warriorforum.com/warrior-...y-thru-im.html

    Cheers!

    Angie
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  • Profile picture of the author R Hagel
    Yup, LB is right -- go to a professional. If, however, you'd like a little preview of what to expect, go to your country's tax website (in the U.S. it's Internal Revenue Service). Lots of good information from an official source. (BTW, a good tax pro can make sure you pay all the taxes you owe and not a penny more. )
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    • Profile picture of the author Brawnydt
      Yea, add into the mix the fact that I'm currently an expat from the US living in a foreign country and everything gets twice as confusing. woohoo :rolleyes:
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      • Profile picture of the author USHwy129
        Originally Posted by Brawnydt View Post

        Yea, add into the mix the fact that I'm currently an expat from the US living in a foreign country and everything gets twice as confusing. woohoo :rolleyes:
        LMAO oh yeah you are gonna make some attorney's day
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      • Profile picture of the author LB
        Originally Posted by Brawnydt View Post

        Yea, add into the mix the fact that I'm currently an expat from the US living in a foreign country and everything gets twice as confusing. woohoo :rolleyes:
        You are lucky. As an expat you may get an exemption for somewhere around the first 80,000 or so of your income.

        You just doubled your profits.
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        • Profile picture of the author Brawnydt
          I read that just today! That's pretty cool.
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        • Profile picture of the author Tyrus Antas
          Originally Posted by LB View Post

          You are lucky. As an expat you may get an exemption for somewhere around the first 80,000 or so of your income.

          You just doubled your profits.
          He still has to pay taxes on his new home country

          Tyrus
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  • Profile picture of the author Coach Cheese
    You'll want to check into the details regarding your income as an expat -- it's possible that it may not qualify as "foreign-derived". You really do need to get professional help on your particulars.

    But the WSO AngieRammer mentioned will provide you with some really good ideas :-).
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  • Profile picture of the author artwebster
    As always, I must go against the flow here - what is this great love affair wit 'professionals'?

    The people who know ALL the answers and ALL the tax avoidance angles are your local tax officers - and they don't charge for the service!
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    • Profile picture of the author owenter
      Originally Posted by artwebster View Post

      As always, I must go against the flow here - what is this great love affair wit 'professionals'?

      The people who know ALL the answers and ALL the tax avoidance angles are your local tax officers - and they don't charge for the service!
      Not against the flow artwebster, just the usual "voice of reason".

      This is bar far the best advice, in my experience in my own country and as an ex-pat living in a foreign one none of it is so complicated. It only becomes so when you are trying to exploit every loophole.

      Avoid lawyers and use accountants only if you need them.

      Earn your money, pay your taxes with a smile and don't worry about a knock on the door.

      Not wanting to hijack the OP but how do you all feel about paying taxes? Something we should be happy to pay or something to minimise or avoid altogether?
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  • Profile picture of the author bgmacaw
    The problem you'll find with most accountants is that they don't have the first clue about an online business, especially one that doesn't deal with physical goods in some way. Probably the best way to get them to understand is to compare what you do in affiliate marketing to being an independent sales rep who represents multiple companies.
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    • Profile picture of the author Tyrus Antas
      Originally Posted by bgmacaw View Post

      The problem you'll find with most accountants is that they don't have the first clue about an online business, especially one that doesn't deal with physical goods in some way. Probably the best way to get them to understand is to compare what you do in affiliate marketing to being an independent sales rep who represents multiple companies.
      Good point. Here in the EU, selling digital products is akin to providing services. When I explained what I did to my accountant he looked at me like if I was an alien. Then I told him not to worry, that's just seen as international services and all was well. You need to present them a frame of reference from which they can derive meaning.

      Tyrus
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