11 replies
Hi guys,
Just a quick question. Do you pay taxes on your internet earnings and do you register your service as a company if e.g. you have created a product for sale?
I'm thinking if it's necessary.
Thanks
#taxes
  • Profile picture of the author ReikiGirl
    Originally Posted by jerzykaz View Post

    Hi guys,
    Just a quick question. Do you pay taxes on your internet earnings and do you register your service as a company if e.g. you have created a product for sale?
    I'm thinking if it's necessary.
    Thanks
    Yes I pay taxes and yes my business is registered. If you need a good CPA mine is FABULOUS.

    cpagame@yahoo.com is his email address and Steve Goldflam is his name =)
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  • Profile picture of the author BabyMama
    Yes I registered as a company and pay my taxes. I now work full time from home and internet marketing is my sole income.
    I love having my own company and get great tax benefits from doing so.
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  • Profile picture of the author pacelattin
    Recommendations:

    1. Create a corporation, highly recommend Wyoming.
    2. Get a simple accounting program that keeps track of what goes out and in.
    3. Pay out of your business things like part of your rent, or pay yourself the value of the room/rooms you use for your business.
    4. Pay for as many office type stuff out of your business. Printers, computers.
    5. Pay for travel to Affiliate SUmmit etc.

    Having a Corp will make your life so much easier, and cheaper. Keep records.

    On another note, I just paid off $500k I owed to the IRS. Keep records, again.. I lost a bunch of computer records and got taxed on stuff I shouldn't have.
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  • Profile picture of the author Istvan Horvath
    Paying taxes is not really related to registering a company.

    You have to pay taxes on any income you make - offline or online. If you don't register a company or a business name, then you pay it as a self-employed person.

    Whether you register a company or not, it's a personal choice... when you grow to a certain level it's is more advantageous to have one.

    Consult with a local tax specialist: rules vary by jurisdictions.
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    • Profile picture of the author Cru
      Originally Posted by Istvan Horvath View Post

      Paying taxes is not really related to registering a company.

      You have to pay taxes on any income you make - offline or online. If you don't register a company or a business name, then you pay it as a self-employed person.

      Whether you register a company or not, it's a personal choice... when you grow to a certain level it's is more advantageous to have one.

      Consult with a local tax specialist: rules vary by jurisdictions.
      I would always register a business. It is so cheap and for taxation purposes alone it is a no brainer.

      You should set up a business so your cost of doing business offsets your profits. Plain and simple.

      For example, would you rather pay for a new MacBook out of pocket and pay taxes on your profits? Or would you rather the cost of your new MacBook offset roughly $2000 in profit?
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  • Profile picture of the author kindsvater
    Your Internet earnings are taxable.

    One of the most important things you can do is be sure you are "in business."

    This is different from registering a "company."

    You, as a sole proprietor, can be a business.

    Being in business is your golden ticket to taking many deductions.

    Not being in business, such as only doing whatever it is you are doing as a hobby, means you are needlessly paying more taxes than you need to.

    The easiest money you will ever make is keeping more of what you have already earned.

    .
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  • Profile picture of the author blittzs
    Well if your not making a lot like me about $500-$1000 a month i dont really think you need to pay taxes unless your selling stuff then you need to pay tax.
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    • Profile picture of the author dfs_dean
      Originally Posted by blittzs View Post

      Well if your not making a lot like me about $500-$1000 a month i dont really think you need to pay taxes unless your selling stuff then you need to pay tax.
      Well damn. I never knew that WE got to decide when we need to pay taxes and when we don't. Learn something new every day!

      Peace
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      Find something to enjoy about reality. It's not going to go away.
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    • Profile picture of the author BloggingPro
      Originally Posted by blittzs View Post

      Well if your not making a lot like me about $500-$1000 a month i dont really think you need to pay taxes unless your selling stuff then you need to pay tax.
      If you make more than $600 in a YEAR via self-employment then you will be paying taxes. If your making $1000 a month that is an additional $12,000 in yearly income.

      Not only that but if you live here in the states not only will you pay income tax, but you'll need to fork over more cash for the self-employment tax.

      Many self-employed individuals make quarterly payments to try and stay ahead of the curve and not owe at tax time. Talking to a tax professional can help you avoid a really ****ty situation next April.

      EDIT: Doing business through a "company" can be beneficial, but can also cause you to be taxed twice. Call a local tax professional in your city and talk to them about what is best for YOU and your business.
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      You're going to fail. If you're afraid of failure then you do not belong in the Internet Marketing Business. Period.
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  • Profile picture of the author aeri
    I was in the process of registering for a business just now, but I guess I really should talk to a professional tax person since I probably have a good amount of access through college And I agree with the post above...if you look at other websites like paypal, they mention the $600 per year via self-employment, so regardless, you will have to file for taxes unless you're a dependent in some situations I think?
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  • Profile picture of the author Dustin_M
    A good CPA is worth his or her weight in gold. Trying to skate by and not pay taxes is a quick way to ruin any progress you may have made online.
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