New in the Game - Taxes

Need to know about taxes...

[metakomm]

I have accounts with Zanox, Tradedoubler, CJ and Linkshare.

Anyhoo, been in the game 30 days and this has taken off more than I ever expected...Making almost $100/day in profit.

Me and my partner are about to form an LLC and get this thing centralized...

But what's the deal with living in the US and taxes?

[hunderdown]

Given that amount of income, and the fact that you are setting up a business, you should talk to a tax lawyer or other expert. People on these boards can give you general advice but that's not going to be enough.

[metakomm]

I will def. do that...Just wondering if there is a ballpark figure...Like 40% of that profit will be taken by Uncle Sam...

[gamiziuk]

Well I still have a "regular job" and I asked my employer to change my tax witholding status to take out the maximum table of taxes.

If you have a "day job" you may want to do the same thing, otherwise the Income Removal Service will want you to pay your taxes Quarterly.

[MovingOnUp]

A corporation and a sole proprietorship or partnership are very different. Talk to a tax accountant, let him know the details, and see what he recommends. If you go the corporate route, be sure you understand the ways to get money out of the corporation and the tax effects. You can end up being double taxed. It's especially bad when you're planning on withdrawing virtually all of the profits. (Google "taxes on money withdrawn from corporation" and review some of the sites found so you'll have a good understanding when you talk to tax accountant.)

30-40% is a fairly good estimate if you're bringing in quite a bit of money.

[GuitarZan]

Hey,

Or you could consider moving to the Bahamas :)

C.K.

[gopi]

>> you could consider moving to the Bahamas

If you are a US citizen that dont help!

[diamondgrl]

You should not take any advice here too seriously - we can't give you legal or accounting advice - but it's not too tough if you are reasonably intelligent and can read. It shouldn't be necessary to hire a professional, particularly if money is tight and you are in business startup mode.

You need to file a Schedule C with your IRS 1040. Simplified a bit, revenues minus expenses equate to your income. And Schedule C just helps organize that a little. Every quarter you need to file estimated taxes. Same basic principle applies with state taxes.