I'm just starting out in affiliate marketing and was wondering if it was a good idea to set up a corporation. I notice that most of the programs ask for company name and federal id #'s. Not to mention when the money starts to come in it won't get taxed as income on your personal tax return.
Unless you already have a corp set up just use your SS#. Save that money and put it toward PPC, link building, article marketing
If your going to hold alot of money it should be safe, don't take any chances in trying to work your way around it. Better safe then sorry right?
They don't have to pay taxes on money that's not theirs. He is just the third party holding the money in a safe account.
The money will not flow to him as ordinary income unless he pays himself a salary. But the fact still remains that the corporation will have to pay taxes. It does not pay personal income tax. It pays corporate income tax. The corporate income tax would be paid out of corporate funds.
Thanks everyone, I do have a corp. set up already, but it was for an offline business that didn't go through in the last minute. I'm not sure if I can use this, but i'm going to contact my accountant and ask about this. Maybe i can change the name. Thanks again guys.
Not necessarily. For one it depends upon the type of corporation (S? C?) and how much is made. If an S corporation, it doesn't matter since the corporate income will flow through to the corporation owner and be taxed as ordinary personal income If a C corporation, it depends a lot on how much is made. There is a crossover point where tax on profits is lower if taxed at a personal income rate. See an accountant.