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Taxes with CPA networks?

by proaffiliate26
13 replies
Hey guys, I'm currently JVing with a popular person on YouTube and we're going to be generating tons of leads within the next month.

How would the taxes work out for a network like Neverblue? My partner doesn't want to get audited... Is there any way of working this out so that my partner doesn't get in trouble with the IRS?

Any help would be largely appreciated! Thanks!
#cpa #networks #taxes
  • Profile picture of the author Affiliit
    Speak with an accountant!!
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    • Profile picture of the author adsquare
      Don't ask for tax advice on the internet - no one is ever right.

      Jared
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  • Profile picture of the author Kenster
    If you both are getting tons of money and tons of leads I would suggest just paying the taxes. Nobody wants to get audited, thats why we pay our taxes ya know!

    But yeah, speak to an accountant for professional advice.
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  • Profile picture of the author proaffiliate26
    Thanks for the responses guys! We're definitely going to pay, but we're not sure how it would be split up... I'm the one with the account on the CPA Network. So would I get taxed first (from Neverblue, let's say) and then I'd have to send payments to my JV partner? Doesn't my JV partner have to pay taxes as well?

    Most of the people I've spoken with are not sure how things would work out. I guess I'll try to get in contact with a better accountant soon.

    If anyone could help me understand the process I would go through, that would be appreciated.

    For example,
    We generate leads -> I get taxed from Neverblue -> I pay my JV partner the negotiated percentage amount after -> My JV partner gets taxed on the amount I send?

    Would it make things easier if I were a part of a LLC?
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  • Profile picture of the author RyanEagle
    We payout 100% to affiliates then send 1099's for you to deal with the taxes later .
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  • Profile picture of the author Saj Gupta
    Depending on you tax bracket, you can write up a contract with your partner so that you are not paying for your partner's share of taxes. Let's say you are in 30% tax bracket, so even though Neverblue may not deduct taxes at source (they'll send you 1099 in Jan next year), the partner's share is revenues minus 30%.
    Else you can create an LLC and update your EIN number with Neverblue.
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  • Profile picture of the author proaffiliate26
    Thank you guys for the new responses. It's starting to get a little bit clearer now.

    Let's say that I'm in the 30% tax bracket. For simplicity's sake, let's assume I make $1,000 in the next month with NeverBlue. Pretend I don't make anything after that.

    So when NeverBlue sends me the 1099 next Jan, I'd have to pay $300 in taxes, right?

    Now let's pretend that I have a contract which states that my partner and I split everything 50-50 after the taxes. This would mean that I write him a check for $350 (700/2), correct? Would he have to pay taxes on the amount I send him? Would he get audited (especially if we made a lot more than that)?

    Thank you guys again for providing insightful answers.
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    • Profile picture of the author advcpa
      Actually NeverBlue doesn't send you anything from what I understand. You have to keep track of your earnings. They are a Canadian based company. I could be wrong though, I'd ask your rep.
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    • Profile picture of the author adsquare
      Originally Posted by proaffiliate26 View Post

      Thank you guys for the new responses. It's starting to get a little bit clearer now.

      Let's say that I'm in the 30% tax bracket. For simplicity's sake, let's assume I make $1,000 in the next month with NeverBlue. Pretend I don't make anything after that.

      So when NeverBlue sends me the 1099 next Jan, I'd have to pay $300 in taxes, right?

      Now let's pretend that I have a contract which states that my partner and I split everything 50-50 after the taxes. This would mean that I write him a check for $350 (700/2), correct? Would he have to pay taxes on the amount I send him? Would he get audited (especially if we made a lot more than that)?

      Thank you guys again for providing insightful answers.
      Absolutely not. Like i said, talk to an accountant. You do not pay 30% of your revenue.

      Jared
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      We offer affiliate training, custom pay plans and over
      700+ campaigns, many of them being exclusive deals!
      AIM: ad2jared | Email: jared@adsquarenetwork.com
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  • Profile picture of the author nutzostyle
    Along with talking to an accountant get yourself a program to track your earnings and expenses.
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  • Profile picture of the author proaffiliate26
    In my scenario, I meant let's pretend I'm in the 30% tax bracket already earning the maximum for my bracket and that the $1,000 is over the max amount.

    I'm starting to look for good accountants now. Thanks to everyone for the help.
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