Forum Moderators: mack
who make substantial money (over $1000 per month)
substantial money? that's still a hobby. when you can support yourself and your family from your website, then it's a business.
when you have hundreds of people working for you, and you make $1,000,000 per month, then it's substantial money.
As for registering and paying taxes, you should consult a tax attorney or accountant for proper legal advice.
However, all income needs to be declared.
I'm sure many people have different views of what substantial money is as well. that wasn't the point of my question and i still have no form of an answer.
how many of you guys register it, and how many of you don't?
i'm planning on selling a few products on my sites so does this come into play at all?
You should definately do some serious research on situations where you are. A consult with both an attorney and an accountant is always a good idea.
No one here can give you specific info, just recommendations.
Freq---
see what fits you now, you can always grow into an llc or other corp down the road. each has different tax implications and you will want that to factor into your decision. you definitely want to pay taxes on your income. your secretary of state (sos) should have a "starting a business" book or guide for you which will help a great deal and answer your questions.
good luck i wish you much success.
I call it a business on my taxes, because in the US, you also have to pay "self employment tax" on any non-employment income. I have extra taxes taken out of my "day job" paycheck to cover what I think I will make on web stuff, and so far, that has worked out fine and I do not pay quarterly estimated tax.
If you *only* work for yourself, and you're in the US, you will likely have to pay estimated taxes quarterly, or face penalties. $1,000 a month in the US is absolutely considered taxable income. For that matter, any income in the US is considered taxable.
Sorry, I can only speak for US taxes, and my state does not have a state income tax, so if you're in the US, and yours does, you'll likely have some paperwork to do there as well.
1. Business take you seriously. I have had more than one advertiser question why he had to address the check to ME and not the site.
2. Liability. In our litigious society it is dangerous to NOT seperate yourself from your company. If a lawsuit comes after my site, it might bankrupt the company, but it won't effect me or my fiance.
3. Deductions. I am not an accountant but I have heard having a company allows for more tax deductions (such as a portion of your rent).
