Do I Have To Pull Out a Business Entity?

[naitsirhc26]

Hello, I have a website that I would like to put adsense on, and I also have ways for people to pay me for advertising. Since I am only 15, do I have to pull out a business entity? Do I have to pay taxes on this? How would I do this. Do I just not worry about. For adsense, I can just put it under my dads name. What do you think I should do? Step by step.

[LifeinAsia]

How much money are we talking about? A few hundred dollars/year? A thousand a month? More?

If you make income, you pay taxes on it (subject to deductions). Period. To not worry about it is to create a huge monster that will come back to bite you big time.

Savy people learn how to allocate their business expenses to minimize their profit (which is the part that's taxed).

Since you're only 15, it's highly unlikely that your tax rate would be higher than your father's, so putting the income under his name means a bigger chunk of money going to taxes. However, I believe AdSense (and probably other affiliate programs) do have an age limit, since contracts with minors are not legally binding.

Talk to a tax advisor about your particular situation. Your dad should also be in the meeting if income is going to be recorded under his social security number and therefore affecting his tax situation.