Internet Market'ers have to Pay Taxs?!

Banned 13 years ago

I have a similar question, I live in Toronto, Ontario, but the majority of the money I make online is from ClickBank. Do I have to pay taxes or does CB manage all of it?

Let's say I have an income of around 10,000 per month for example. What do you guys think?

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Michael D Forbes

13 years ago

Originally Posted by Vtoy

I have a similar question, I live in Toronto, Ontario, but the majority of the money I make online is from ClickBank. Do I have to pay taxes or does CB manage all of it?

Let's say I have an income of around 10,000 per month for example. What do you guys think?

If you are making 10k per month and don't know the answer to this, I'm just going to let you know now, you're in for a rude awakening at some point.

Short answer... no, CB doesn't pay your taxes for you. I'd also be very surprised if there aren't tax treaties in place to make sure you are reporting properly there in Canada.

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Adrian Int 13 years ago

This reply is most specifically for Vtoy and anyone else who is from Ontario, Canada.

As an Ontario resident myself and former financial planner in Ontario, I can guarantee you that you will be paying tax on your earnings.

You can *try* to not declare it, and if you're not making a lot of money online you may get away with it. You may run into some trouble if you get audited though. I've run a couple different small business type ventures at this point in my life and I've been audited by the CRA (Canada Revenue Agency for foreigners ;-)) in the past.

It can be a nasty surprise to find out that they government thinks you owe them thousands of dollars - especially if you don't have any liquid assets to pay with.

Playing it safe is your best bet.. Pay your taxes. You have access to "free" healthcare, well paved roads and a pretty decent school system. It could be worse. :-D

Besides... If you earned less than $10,000-ish total in 2011 there is really no harm in claiming it as you'll be pardoned for the vast majority - if not all of it depending on the exact amount.

Cheers,
-Adrian

PS: I wish we didn't have to pay, too. :-P
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onSubie

13 years ago

Originally Posted by Vtoy

I have a similar question, I live in Toronto, Ontario, but the majority of the money I make online is from ClickBank. Do I have to pay taxes or does CB manage all of it?

Let's say I have an income of around 10,000 per month for example. What do you guys think?

Hi

You have to declare all of your income by filing a tax return with Revenue Canada.

If you are making a lot of money then I would suggest making quarterly income tax payments so you don't have a whopping huge bill at the end of the year. See an accountant to do all this if you are actually making $10,000 a month.

Without an employer nobody is deducting taxes from your income so you are responsible for that.

PayPal and eBay as well as some other online financial entities have an agreement with Revenue Canada to report earnings of Canadians who have income past a certain threshold.

Mahlon

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wolfmmiii

13 years ago

Really? You really don't know? What would make you think you don't have to pay taxes on earnings from a small business?

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AC21DJ

13 years ago

Everyone who is self employed pays taxes. Better yet, everyone except retired people and children pay taxes.

Death and taxes are the only guarantees in life.
Get an accountant.

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Mikal Laster

13 years ago

Originally Posted by AC21DJ

Everyone who is self employed pays taxes. Better yet, everyone except retired people and children pay taxes.

Death and taxes are the only guarantees in life.
Get an accountant.

What age is a child considered?

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AC21DJ 13 years ago

Originally Posted by Mikal Laster

What age is a child considered?

I bet that children who make money pay taxes too. Not sure. Like I said earlier, Get an Accountant.

People who are lashing out at you shouldn't be. You asked a question and are getting answers. If you honestly didn't know then you should be able to ask without getting beat up for it.
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Emkayu 13 years ago

Originally Posted by Mikal Laster

What age is a child considered?

what ever age it is in your country where you're legally allowed to have a job, that's 16 in the UK, I'm pretty sure it's 18 in the Us but check it out none the less
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aluminum

13 years ago

Originally Posted by AC21DJ

Everyone who is self employed pays taxes. Better yet, everyone except retired people and children pay taxes.

Death and taxes are the only guarantees in life.
Get an accountant.

If you are under 18 you still have to file taxes.

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wizzard74

13 years ago

Yes you have to pay taxes.

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TBInternetMarketing 13 years ago

Originally Posted by wizzard74

Yes you have to pay taxes.

Yup, but only if you actually make a profit
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yourreviewer

13 years ago

Really, some of the questions asked in this forum just blow my mind.

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Snow_Predator

13 years ago

Originally Posted by yourreviewer

Really, some of the questions asked in this forum just blow my mind.

This kind of attitude is really not necessary. A lot of people who start in IM have never been self-employed before and know very little about such matters.

We must try not to be so judgmental, and instead try to encourage all manner of questions no matter how obvious the answer may seem to us.

To answer the OP's question, Yes, unfortunately you DO have to pay taxes.

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1 reply

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Mikal Laster

13 years ago

Originally Posted by Snow_Predator

This kind of attitude is really not necessary. A lot of people who start in IM have never been self-employed before and know very little about such matters.

We must try not to be so judgmental, and instead try to encourage all manner of questions no matter how obvious the answer may seem to us.

To answer the OP's question, Yes, unfortunately you DO have to pay taxes.

Thanks for the great feedback and not lashing out at me, Thanks.

Best Regards, Mikal Laster

Thanks

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satrap

13 years ago

Originally Posted by yourreviewer

Really, some of the questions asked in this forum just blow my mind.

Originally Posted by Ord Allenbea

If you have to ask then maybe you should re-consider about running a business.

That is just not right! I mean, not everyone knows everything. Yeah, this topic may be one that you and I may think everybody already knows about, but there are lots of people who dont.

For example, I am a refugee from IRAN living in the US. Where I come from, you dont pay taxes (and Franky thats why I think nothing works there; roads, public health care and so on). So, when I came to the US 9 years ago, it took me 2 years (after learning the language and learning about my new home) to realize that I have to pay tax on every single thing even a bottle of water.

So, yeah, there are lots of reasons for people not knowing about taxes or any other thing for that matter. This is a forum and I dont know about you, but when I registered here as a beginner, I registered because I wanted to ask questions and learn.

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Istvan Horvath

13 years ago

Originally Posted by satrap

That is just not right! I mean, not everyone knows everything. Yeah, this topic may be one that you and I may think everybody already knows about, but there are lots of people who dont.

First of all, according to the forum owner (Allen) we should NOT ask legal questions in the forum and, especially, shouldn't take legal advice.

Also, don't forget, one of the basic tenets of the legal system we live in is Ignorantia juris non excusat = "ignorance of the law does not excuse".

And if anybody is running a business, it's his duty to learn about the legal/tax requirements... not to learn about them in an international forum, where everybody is guessing

Originally Posted by satrap

For example, I am a refugee from IRAN living in the US. Where I come from, you dont pay taxes (and Franky thats why I think nothing works there; roads, public health care and so on). So, when I came to the US 9 years ago, it took me 2 years (after learning the language and learning about my new home) to realize that I have to pay tax on every single thing even a bottle of water.

OK, you are still confused about it: mixing the two main tax types:
- sales taxes
- income taxes

This thread is about the income tax, so don't mention the bottled water. Sorry, that's sales tax on it...

Originally Posted by satrap

So, yeah, there are lots of reasons for people not knowing about taxes or any other thing for that matter. This is a forum and I dont know about you, but when I registered here as a beginner, I registered because I wanted to ask questions and learn.

That's fine. Ask all the marketing questions, that's what we all want to know and master. For tax questions - go to an accountant. It is that simple.

Nothing personal.

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Elmar

13 years ago

What ?

This is preposterous !!!

WE are internet marketers we should not pay any taxes !!!

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arny660 13 years ago

Mikal

Unfortunately we have to pay tax on all money we earn, unless of course you don't declare it!

Make sure that you keep a note of all the money you earn, as you will need this to complete your tax form.

Also, make sure that you keep a note of all your expenses, so that you set these off against your income. You only pay tax on the net profit, not your total sales.

Good Luck,

Arny
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fin 13 years ago

I thought UK affiliates didn't pay tax on affiliate earnings. Maybe I'm wrong.
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- wizzard74 13 years ago
  
  Originally Posted by fin
  
  I thought UK affiliates didn't pay tax on affiliate earnings. Maybe I'm wrong.
  
  I think we do have to pay tax, it's only below a certain threshhold that we don't.
  
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Jayson Metecntal

Banned 13 years ago

[DELETED]

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Jonathan 2.0 Banned 13 years ago

Originally Posted by Jayson Metecntal

hey man!

All you're doing is wasting your time. You know that your posts will be deleted in seconds or minutes.
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kindsvater

13 years ago

Originally Posted by Mikal Laster

Really curious about this question?

Do we have to pay taxes on the the money we get?

Best regards, Mikal Laster

Yes. The IRS doesn't care where the money comes from.

.

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Anurmedia

13 years ago

Online business is like any other business, you have to pay taxes of course. I have a company and I also do a lot of affiliate marketing and I have to pay taxes from those profits to, unless you live in Monaco or Brunei where income tax is only 1%.

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Neville Pettersson

13 years ago

Originally Posted by Anurmedia

Online business is like any other business, you have to pay taxes of course. I have a company and I also do a lot of affiliate marketing and I have to pay taxes from those profits to, unless you live in Monaco or Brunei where income tax is only 1%.

Brunei actually has NO income tax. I lived there for the past 2 years. That's why there are soooo many small businesses and restaurants.

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AC21DJ

13 years ago

Originally Posted by Jayson Metecntal

hey man

have you checked out all of the crazy and different pictures that the man

Here's the funniest thing - the freak posing as a woman under the name alexa smith- EVEN AFTER BEING EXPOSED UNDENIABLY AS A FRAUD - continues to post here as if this weren't the case.

... what pedophile freaks like the man typing behind the name of Alexa Smith will lead you to is more purchases of worthless WSO's and stuff like that.

... hey the gay moderators already have a built in way to delete the the site I want you to check out, so you know what kind of liars and frauds you are dealing with.

But they're not into that! And are trying to thwart me - but that's okay!

Are you serious with this reply? Who cares whether Alexa Smith is a man or a woman? Are you coming to WF to look at profile pictures or to learn something? If you don't like what he/she has to say don't read it.

Most people here on the forum don't have any problem with reading other peoples advise and learning from there expertise. If you don't think she is giving out anything of value, move on to the next post. Don't try to ruin it for everyone because you are unhappy.

Aaron

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GMD

Banned 13 years ago

Originally Posted by Mikal Laster

Really curious about this question?

Do we have to pay taxes on the the money we get?

Best regards, Mikal Laster

If you're really from Dallas, TX, then YES you do need to report your online income to both the State of Texas (income tax) and the federal government.

Obviously, you need to make sure that you KNOW what kind of entity you want to file as (individual, corporate, for example) as well as have a basic tax strategy in place -- you might "pay" tax, but you want to make sure you end up getting a refund later!

If you report your earnings, you can't go wrong.

It's a little known fact, but even if you're a drug dealer, pimp, scammer, or whatever: as long as you report those earnings YOU WILL NEVER have any problems from the IRS. The IRS doesn't report this information to other agencies.

So obviously if you're an IMer, report those earnings and you'll never have to deal with the long arm of the federal government pulling you in (and down!).

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Vtoy

Banned 13 years ago

Originally Posted by GMD

If you're really from Dallas, TX, then YES you do need to report your online income to both the State of Texas (income tax) and the federal government.

Obviously, you need to make sure that you KNOW what kind of entity you want to file as (individual, corporate, for example) as well as have a basic tax strategy in place -- you might "pay" tax, but you want to make sure you end up getting a refund later!

If you report your earnings, you can't go wrong.

It's a little known fact, but even if you're a drug dealer, pimp, scammer, or whatever: as long as you report those earnings YOU WILL NEVER have any problems from the IRS. The IRS doesn't report this information to other agencies.

So obviously if you're an IMer, report those earnings and you'll never have to deal with the long arm of the federal government pulling you in (and down!).

How about Toronto, Canada? My income comes from CB. Do I have to file taxes? Please respond.

Thanks
3 replies

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wizzard74 13 years ago

Originally Posted by Vtoy

How about Toronto, Canada? My income comes from CB. Do I have to file taxes? Please respond.

Ask your local tax authority.
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- Melanie Crouse 13 years ago
  
  How about Toronto, Canada? My income comes from CB. Do I have to file taxes? Please respond.
  
  Yes. You have to report, and pay taxes on, all income earned from any source.
  
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GMD Banned 13 years ago

Originally Posted by Vtoy

How about Toronto, Canada? My income comes from CB. Do I have to file taxes? Please respond.

I only have experience in European and American tax requirements.

However, in your case, the following is true:

ClickBank USA will send you a form showing ALL of your earnings for the previous tax year (if those earnings meet a minimum threshold).

A copy of that form will ALSO be sent to your country's tax authority as well (so the Canadian tax authority will KNOW that you earned money from ClickBank).

You're responsible to report that income on your tax forms whenever it is you guys file.

Maybe somebody from Canada can weigh in and add specifics to this OR you can do a little research yourself online so that you can point yourself in the right direction.
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robbeh 13 years ago

Originally Posted by Vtoy

How about Toronto, Canada? My income comes from CB. Do I have to file taxes? Please respond.

Yes, absolutely! I am from the GTA as well so I can tell you first hand.

I don't get how people don't think they have to pay taxes...any money you earn as INCOME is taxed! Plain and simple...even if you cut the lawn for you parents and they pay you $20.00...you should be paying tax as that's income and they should be declaring it as an expense.

Now...the real question is what can you get away with. I would never cheat the tax man if I were you but there are a few things to consider (much like the lawn example above).

If you are earning through an untraceable source (cash) and the person paying you doesn't claim it. Then I wouldn't worry. If you make a small amounts online ( few thousand a year) I wouldn't worry...especially if it's made out to your personal name.

However, if you are making 10k a month?! You would be comitting tax suicide not to declare it...the taxman will find out since you will over 100k coming through your accounts...you purchase a car...the car company claims your purchase as revenue...they now know you bought a car etc...same with Click Bank...they declare their revenue and will say I paid "Insert Name" x amounts of $$...as you see...paper trail.

Lastly a thing to note, you are allowed to earn I think it 13k in ontario before you are taxed...now keep in mind you still have to declare it but you won't owe anything on the 13k.

So all in all - I would be paying tax. Also as a disclaimer note, these are just my personal opinions...I like to do business by the book to keep clean but these are just some of the things I have heard/found in my business journey.
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RichardDean

13 years ago

Originally Posted by Mikal Laster

Really curious about this question?

Do we have to pay taxes on the the money we get?

Best regards, Mikal Laster

Just transfer the money to me and I will pay the taxes for you.

Richard

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Mikal Laster

13 years ago

Originally Posted by RichardDean

Just transfer the money to me and I will pay the taxes for you.

Richard

haha goood one lol

Best Regards, Mikal Laster

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Christines Dream

13 years ago

For Canadians, you have to pay RST (now HST) on anything 33,000 and above. This is what the rule was back in 2007. Check with your provincial .gv site under small business. You may also want to check out anything on MBL (master business license). -- last time I checked it was 68$ -- now I think it's cheaper if you go online. And no, you don't have to incorporate. And I personally wouldn't until you have a decent amount of income coming in - incorporation taxes are costly. But then again, you get what you pay for.

Definitely check with your local provincial government site first.

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robbeh

13 years ago

Originally Posted by Christines Dream

For Canadians, you have to pay RST (now HST) on anything 33,000 and above. This is what the rule was back in 2007. Check with your provincial .gv site under small business. You may also want to check out anything on MBL (master business license). -- last time I checked it was 68$ -- now I think it's cheaper if you go online. And no, you don't have to incorporate. And I personally wouldn't until you have a decent amount of income coming in - incorporation taxes are costly. But then again, you get what you pay for.

Definitely check with your local provincial government site first.

I was actually interested on this rule. I charge HST in my business because I do a lot offline. Now my question is...you are supposed to CHARGE HST if you make over 30k (or 33k, whatever it is)...but in IM you don't have a "client" to charge HST...so in all essence do you have to pay HST?? I don't think so since you are already responsible for income tax...you don't pay HST on your income or corporate tax if you are incorporated....

I think I might look into this since I do make a decent amount online as well.

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Pete Lauder 13 years ago

For those in the UK, that have been skimming through, you may want to seek the advice of an accountant.

And yes, you do have to pay taxes on affiliate earnings, so if you are already working, then you pay on top of your PAYE, but you can claim legitimate business expenses.

The threshold referred to is your normal personal allowance, which is usually your tax code multiplied by 10.

Pete
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Mikal Laster

13 years ago

Thanks for all the help guys, its time to look into all this tax stuff so i dont get into trouble

Best Regards, Mikal Laster

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WhiteDove

13 years ago

Hey Guys! Thanks for all the great information. Every day we learn something here at the forum...

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Rough Outline

13 years ago

There's a thing called income tax...

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jpboxersox

13 years ago

No, you cannot get out of paying taxes as an IM. Remember when you paid for things for your business always save your receipts....I use to throw them away

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sunray

13 years ago

Rent a flat in Monaco (and live there) and you no longer need to be concerned about income taxes. Or course, this tiny state has the highest property prices in the world, and depending on your income, you may end up with paying considerably more.

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aluminum

13 years ago

The thing I hate is that unless I hire an accountant, I get taxed on Revenue and not profit. So I pay more taxes then I should.

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robbeh

13 years ago

Originally Posted by aluminum

The thing I hate is that unless I hire an accountant, I get taxed on Revenue and not profit. So I pay more taxes then I should.

This is one of those moments...when I think...with one eyebrow raised..."are you serious?"

Lets say you make $40 000 revenue a year...if what you are saying is true and you are taxed lets say 25% (forgot all the brackets)...you would be paying $10 000 to the tax man...

Now judging by your comment, you must have a decent amount of expenses...otherwise you wouldn't care since revue and profit would be the same. But lets say you only have...$5000 in expenses...you would save $500.00 and maybe more since you would possibly be in a lower tax bracket (remember it's declared income).

So why on earth would you NOT hire an accountant??? Which costs MAYBE 250$ for a return...even if they costed you $500...you're still better off!

At least grab Turbo tax for small business which is like $80 for a return...

Thanks
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aluminum

13 years ago

Originally Posted by robbeh

This is one of those moments...when I think...with one eyebrow raised..."are you serious?"

Lets say you make $40 000 revenue a year...if what you are saying is true and you are taxed lets say 25% (forgot all the brackets)...you would be paying $10 000 to the tax man...

Now judging by your comment, you must have a decent amount of expenses...otherwise you wouldn't care since revue and profit would be the same. But lets say you only have...$5000 in expenses...you would save $500.00 and maybe more since you would possibly be in a lower tax bracket (remember it's declared income).

So why on earth would you NOT hire an accountant??? Which costs MAYBE 250$ for a return...even if they costed you $500...you're still better off!

At least grab Turbo tax for small business which is like $80 for a return...

No, I didn't make myself clear. My expenses are rather small, I was simply stating that I still was paying a little extra, but not enough to worry about getting an accountant or anything.
Also many of my expenses can't be tracked (long story)

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Rose Anderson 13 years ago

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- John Coutts 13 years ago
  
  In the 1930s, Al Capone was suspected of all kinds of illegal activities, including involvement in the St Valentine's Day Massacre, where seven rival gang members were executed.
  
  The authorities didn't have enough evidence to convict him on anything, though - until someone suggested they get him for tax evasion.
  
  Al Capone died in 1947. He spent his last 15 years in prison, all because he didn't pay his taxes.
  
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Rose Anderson

13 years ago

I don't believe Texas has a state income tax. At least they didn't when I lived there. But as always, this just shows that the laws are different from country to country, state to state, and even within cities and counties sometimes. So consult a local expert for the correct answers.

You can work in the U.S. as young as 15 I believe but only for a certain amount of hours. But if you're making money, you're old enough to pay taxes on the money.

Rose

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PlatinumLady

13 years ago

Originally Posted by Mikal Laster

Really curious about this question?

Do we have to pay taxes on the the money we get?

Best regards, Mikal Laster

If you're self-employed as you would be in this case whether in online or offline business you will have to keep your books and pay your tax when it's due or you'll have some explaining to do when the tax man from the Inland Revenue catches up with you.

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Ord Allenbea

13 years ago

If you have to ask then maybe you should re-consider about running a business.

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veheme

13 years ago

It really depends on which countries you live in. I live in a country where you don't have to pay taxes (business taxes) because they require you to have physical receipts used IN the country which I don't have since I transact online.

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Michael D Forbes

13 years ago

If you earn any kind of income, you are obligated to know the tax laws in your locality, anywhere in the world it might be, regarding reporting that income.

The source of income is irrelevant, your age is irrelevant, whether or not other people report properly is irrelevant.

Learn the laws that apply to your situation and then comply.

Please don't ask us to try to be your accountant, no two situations are exactly alike. For what it's worth, there is no tax exclusion for minors... even a 2 year old has to pay taxes in the US if they have enough of the right kind of income.

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Janell6754

Banned 13 years ago

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capitalalchemy 13 years ago

I would also like to note that Clickbank does not report your earnings from your own product/products, so you must account for this as well.

They only report affiliate earned income, which is really a pain in the butt.
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Curtis2011

13 years ago

Originally Posted by Mikal Laster

Really curious about this question?

Do we have to pay taxes on the the money we get?

Best regards, Mikal Laster

1. Yes you have to pay taxes.

2. No, if you don't pay taxes, the IRS (or equivalent government tax collectors of your country) will probably never find out.

Unless you go Frank Kern style and plaster your name all over the internet talking about how much money you're making.

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GMD

Banned 13 years ago

Originally Posted by Curtis2011

1. Yes you have to pay taxes.

2. No, if you don't pay taxes, the IRS (or equivalent government tax collectors of your country) will probably never find out.

Unless you go Frank Kern style and plaster your name all over the internet talking about how much money you're making.

Seriously? Glad you labeled the following phrase "#2" because that's just what it is: number 2

"...if you don't pay taxes...the IRS will probably never find out."

DANGEROUS DANGEROUS DANGEROUS FOOLISH ADVICE TO BE FREELY GIVING.

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Christines Dream 13 years ago

Lets put it this way. If you don't find a way to pay taxs on your earnings you will get caught. Sooner or later they will find out. The money goes somewhere -- your bank? If you make a living off the internet. What do you declare on your personal income tax as a source of income? Sooner or later the banks start talking, they are required by law to report any suspicious activities to the RCMP (in Canada). Something somewhere will not add up. Your bank account gets regular deposits, your income tax says you work where / do what, ... if you declare you are not working then RC (Revenue Canada) will want to know how it is you are not on welfare and how / where you are getting your income.

If you don't come clean you will be suspected of fraud and the RCMP will come storming the fort.

Declare it...all of it.
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stephenwaldo

13 years ago

Hold on a second, guys! Let's not jump to conclusions!

You might not have to pay taxes if you don't make enough money to be in the first tax bracket...

No taxable income = No taxes

Of course, you still have to file everything the same...So I guess that doesn't really matter.

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rambo9600 13 years ago

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- IMMer1975 13 years ago
  
  Am I the first to quote the "nothing in life is certain but death and taxes" line on this thread?
  
  I can't speak for other countries, but in the US, all income needs to be declared. Or more specifically, you have to file a tax return. While your earnings may be so low that you end up paying no tax, you still need to declare it.
  
  And if you earned substantial income from your IM activities, it gets even better: Assuming that you have been doing this as a sole proprietor (not incorporated), you may even be paying more tax then you expected since you are technically responsible for not only the income taxes but also FICA and Unemployment taxes (something your employer normally pays).
  
  Additionally, any vendor from who you earned more than $600 in the year is supposed to issue you (and the IRS) a 1099 form showing the income received. To date, many of the internet vendors have been slack in issuing 1099's, perhaps because some are not US based. However, as international regulations and cooperation tightens, expect the 1099's to be arriving in your mail with more frequency.
  
  On the plus side, you can really start to avoid taxes and take advantage of the many benefits of being self employed. When your revenue warrants it, look into incorporating. Besides the legal shield it may offer, there are numerous options to improve your tax standing. For example, with a S corp, you can pay yourself a salary that is on the low side, and take the rest as a shareholder dividend which has a lower tax rate. Of course, all of these are legal strategies to lessen your tax bill...but taxes you will still pay....
  
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tpw

13 years ago

Everyone who earns a specific amount of money during the year has to pay taxes.

p.s. This is not an Obama thing... It is required also in most countries on the planet.

Your profession does not excuse you from being required to pay taxes.

If you are required to pay them, then just pay them. It is a cost of being allowed to live outside of prison walls.

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robertphillips 13 years ago

Paying your taxes is a must. No way around it anywhere in the world.
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chall vandenbergh

13 years ago

you need to pay taxes on everyting this doesnt mean they will find out if you dont do it but i woudnt suggest not paying becaus if they find out you will be in seriues trouble

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Michael Ten

13 years ago

It may vary from state to state, but federally YES you will have to pay taxes if you earn anything significant. Consult a tax professional or government documents to find out the exact amount. That just seems like fairly common knowledge.

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colinph970

13 years ago

Just to be clear:

1. In all the countries I am aware of, you have to pay income tax on all earnings, irrespective of where they come from.

2. Most countries allow the first xxxx's to be tax free. Anything above that is taxed. Once you get to a higher threshold then the tax rate goes up, normally from between 20% and 30% to 40% +

In the UK, and many other countries, you can set up a limited company which is a legal entity in its own right. This entity will pay some form of tax (its called corporation tax in the UK). This tax rate is often lower than the personal income tax rates.

Finally - GET ADVICE FROM A TAX ACCOUNTANT!

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Internet Market'ers have to Pay Taxs?!

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