Do I have to pay a tax to state?

13 replies
I seem to have many questions today. I have to pay a fee to the state for the money that I make on the internet?
#fee #pay
  • Profile picture of the author Midas3 Consulting
    You mean tax ?

    Errm yes of course.
    {{ DiscussionBoard.errors[2202671].message }}
  • Profile picture of the author jjpmarketing
    First and foremost check all of this with your local CPA (Certified Public Accountant). They know taxes inside and out.

    On all income you generate you will have to pay income taxes on that revenue. But it will amount to (depending on how you have your business setup)

    Revenue - Expenses = Taxable Income.

    You will have to check with your CPA on the specifics of that formula as I am sure there are limitations... as in some expenses may not be deductible and there are sales taxes for some states.

    You will need to look into taxes on both federal, state, and local levels. But like I said it is best to check with your CPA on this.

    Also some states don't have income taxes.

    {{ DiscussionBoard.errors[2202690].message }}
  • Profile picture of the author Istvan Horvath
    The taxman doesn't care HOW did you earn the money.

    You earn money = income. And you pay your income tax. Period.

    What is so complicated?

    {{ DiscussionBoard.errors[2202726].message }}
    • Profile picture of the author Midas3 Consulting
      Originally Posted by Istvan Horvath View Post

      The taxman doesn't care HOW did you earn the money.

      You earn money = income. And you pay your income tax. Period.

      What is so complicated?
      I've bowed out of this as I'm wondering if this is pure trolling
      and somebody's having a big laugh.
      {{ DiscussionBoard.errors[2202766].message }}
      • Profile picture of the author ozduc
        Just found this on the Nevada State Tax website
        "Nevada does not impose a corporate or personal income tax. Therefore, no filing is required."

        Hence why a lot of people start a Nevada corp or LLC
        {{ DiscussionBoard.errors[2202862].message }}
  • Profile picture of the author HeySal
    Washington state also has no income tax.

    When the Roads and Paths end, learn to guide yourself through the wilderness
    Beyond the Path

    {{ DiscussionBoard.errors[2203143].message }}
  • Profile picture of the author Michael Oksa
    You don't have to understand why, just do it.

    Get a certified tax professional to help you. They are worth every penny.

    Based on your question, and responses to the answers, I would recommend you get that help as soon as possible.

    All the best,

    "Ich bin en fuego!"
    {{ DiscussionBoard.errors[2203172].message }}
  • Profile picture of the author jacktackett
    As folks have said - you need a CPA (best) or at the very least a book keeper. Especially since you have a lot to learn. There are lots of books on the subject and most community colleges and other local entities will periodically have classes on starting a small business.

    Its also based mostly on your location too - from city, county/parish/whatever, State, and Federal. IT also depends on what type of business you have - you may need lots of permits as well. IM is pretty benign on permits - but you can still get into trouble if you fail to follow them.

    Also if you sell a product (including even ebooks - NC has instituted a download sales tax that no one has any idea if it includes ebooks - we're still waiting on confirmation) you may have to remit sales tax to your city,county, or state. Knowing what to pay, what to deduct, and when to pay it is very important to keeping out of trouble and keeping the most money in your pocket. Basically tax evasion (under reporting income and over recording deductions) is illegal - tax avoidance is legal.

    Please, spend some time and get educated on what's required to start a business in your area. There's just a lot to know that we in this forum can't help you with specifically since we don't know where you live and most importantly - most of us are neither lawyers nor accountants. Build your mastermind and make sure those professions are included!

    Finally - welcome! This is a great place to learn - even when we can't give you the exact information required - you'll find lots of folks who can point you in the right direction.

    Good luck!

    Let's get Tim the kidney he needs!HELP Tim
    Mega Monster WSO for KimW

    {{ DiscussionBoard.errors[2203244].message }}
    • Profile picture of the author Aussie_Al
      Of course you have to declare and pay tax on any income you earn

      If you are using paypal be warned that paypal have already announced that they will reporting people earnings to the IRS as of 2010

      Like the guys above suggest get yourself a good accountant!
      {{ DiscussionBoard.errors[2203342].message }}

Trending Topics