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I need to start putting it away into savings so I don't end up oweing a bunch of tax at the end of the year.
Anyway, is it the normal 25% to 35% (depending on your tax bracket)?
Also, if you do not have an business license, can you still deduct expenses (domain names, hosting, PPC costs etc)?
I was thinking of spending a lot in PPC towards the end of the year to kind of lessen some of the tax I owe?
Any tips or help would be appreciated.
Remember that the self employment tax alone comes to 16.25% up to, I think, about $84,000, plus you have income tax on top of that.
Rather than paying at the end of the year, you should be remitting quarterly in order to comply with the law.
And, yes, you can deduct expenses whether you have a local business license or not.
As for PPC, that would depend on whether you can realize a decent ROI. Doing it just to acheive tax savings doesn't make sense to me.
As a self employed person, remember that you can establish a SEP IRA and deduct 25% of your self employment income up to $40,000 annually. This defers taxation and allows you to save and invest for retirement.
But I am actually employed full time with another company.
But I am starting to make a decent amount of affiliate income from personal web sites that I work on after my other job.
I am trying to figure out how to manage this money.?.