Ok so I set up a blog/website about a month ago that is now making around 1k a day... I filled out all the information with adsense with the W9... 1. What all do i need to worry about tax wise? Do i need to file for a sole proprietorship or what not? 2. Do i have to pay local and county taxes? I guess since you could consider my office my room? 3. Should I bother with an LLC? Thanks in advanced..
You make $1000/day after a month? Well, since you're making $365,000/year, I suggest you incorporate and get a good accountant that can get you at of as much tax as you can. but I doubt you make that much.
yea you are big time you should hire a damn good accountant... let them figure all that out for you.. way to go you are set you dont need to worry about money people will do that for you
Do not bother with LLC for your online home business.. just stay sole proprietor.. if you want to know more about taxes check TaxForum.us - the prime place for a tax advice on the web
That is a good amount of money, you must have created your blog with useful blog posts really quick, advertised it quickly and much more to get it that big in a month plus make all that money. I guess you must have either had a big team of people getting this blog up or you bought the blog already with content and a good amount of traffic.
I definitely encourage you to look into an LLC if you are making that much money. It will help you to separate your business and personal accounts, etc. Again, this is something your accountant can help you with...
I would disagree, I would setup an LLC, you are eligible for more tax deductions for your self and for the business. If you are making $300k / yr you should get an accountant.
How the hell did you do that...if you are seriously making that much money, good job. As for tax, I'm trying to learn about it myself but there's all different laws and stuff....so I'd say accountant, you have to pay them but it makes it a lot easier for yourself.
I will jump in with everyone else and say you definately should get an accountant. A good tax accountant will save you more in taxes than you will pay in fees. At your level of income the IRS will be happy to take almost half (or more) of your income if you do not have excellent tax strategies in place.
Why people are keep saying "make an LLC"... of course if you make good money it is not a problem, but for most of the people who run websites it is not a necessity, but just additional headache.. What do you want protect yourself form when running the website from CEASE and DISEASE letter? Just keep it as simple as possible until you make shamefully large amount of money
1) Corporation - you don't need to fill out a W-9, because the merchant doesn't have to provide a 1099 to a corporation. I agree with everyone else about the tax lawyer/accountant route. 2) a LLC you'll get a 1099 if you make over $600 in a year. (which of course it seems like you've done in 1 month) and you can file it along with your other taxes. Just depends on how much work you want to do and how comfortable you feel with filling out the appropriate forms if you go the LLC route. Good luck.
Wrong. Do not take this advice at all. An LLC protects you, and is $500 well spent. Should you get into something where you could get sued, they can come after your COMPANY's ASSETS (i.e. your business bank account, and computer). Versus your PERSONAL ASSETS. Just because you are running a business from your home, in your underwear doesn't mean you just run it like a fly by night. An LLC protects the person. I am sure just because this person has one blog doesn't mean that will be his only asset moving forward. So he might grow and get into some other things. Also, spending $350-500 for an LLC is not a headache to have the protection and be able to sleep better at night. Same as filing for a government tax ID, state and federal, so you are not giving our your SSN all over the web is not a "headache" to protect your identity. It's common sense. Anyone who is planning to be in the online biz needs to set up their company to be run like a company. Not some joker in their underwear, or flipping a burger for their 9-5. You should have, at minimum, a DBA (LLC preferred) and a State, or Fed tax ID. So you are not handing our your SSN. Then take your DBA (you get from county clerk) to the bank, and get a business bank account. Depending on what market you are in, or what you are doing to make money. You will find that some company's will not get your set up unless you can prove you are a business (just like a paypal merchant account as a simple example, but there are many more). Like when you have to set up processing for some companies, buy software, and so forth. It comes up from time to time, and you do not want to run into additional delays. Plus the protection is worth it. If you are in the US, you will have to pay your taxes quarterly. So get a good CPA because you will need to work out your estimated payments. Which should be approx 110%.
Only if you make a lot of money you should set up a legal entity like LLC.. I would say if you make less then $15,000 year it is not worth it
It is easy to set up an LLC and it does protect you. Just be sure to have a good business plan and a good operating agreement( while these are not necessary for it to be legal, it will give you something to look at, present if you ever go to a bank or try and get a partner, etc.) I am in AR and it cost like $40 to register the LLC. Go to your states secretary of state website and you can find all the info. A lawyer is a good idea if you do not feel comfortable doing it yourself but not necessary. Once you get your articles of organization in the mail go to the irs webpage and you can file for a EIN (employee ID number) will be like XX-XXXXXXX. Then go to a bank and open a small business account. This will help you with taxes and keeping your business expenses, income, etc. seperate from personal finances. I did this and am operating my online empire part time right now, it just makes it seem much more professional and allows me to separate business from personal. And I get to tell people I own my own business.