Ok. as a webmaster...google and some affiliates dont take taxes out.. How does this work with the irs? Lets say I make 2,000 a month on websites and blogs. WHen do I pay taxes and how and can they be put on my taxes? Im sure they can. But can anyone tell me how this works. Made 400 so far and plan to make more from google and other things but just want to avoid the legal issues and be aware of them early!!!!!
All income is subject to tax - including self-employment tax on net income. You will also be required to make estimated quarterly payments based on the previous years profit. If you don't make the estimated payments you will get a hefty penalty. You really should consult with an accountant for specifics as taxes also vary by state. Even if you don't wind up owing any taxes, you still need to file.
Tax laws vary so much from country to country and from State to State if you're in the USA that it is impossible to answer. You should find a local accountant or tax consultant who will be able to give you good (accurate) advice about your own location and should be able to help you legally minimize the amount of tax you pay.
How about if we are in EU? Isnt it better to make offshore company? How does it work than if I want to use that money and tax them only offshore?