TAXES

12 years ago

Originally Posted by jerzykaz

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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BabyMama

12 years ago

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.

Thanks

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pacelattin

12 years ago

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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Istvan Horvath

12 years ago

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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Cru

12 years ago

Originally Posted by 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.

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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kindsvater

12 years ago

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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blittzs

12 years ago

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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2 replies

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dfs_dean 12 years ago

Originally Posted by 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.

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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BloggingPro 12 years ago

Originally Posted by 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.

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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aeri

12 years ago

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?