Ok, so I've been learning the ropes of doing Internet/Affiliate Marketing, building websites, etc...and by the time money start rolling, I will have to consider taxes and the business issues associated with it, right? I'm confused on all these matters. First, I plan to open a new checking account (Chase is my bank) as a Free Business Checking Account . Do I have worry about the DBA documents and stuff, as I don't even have a name for my small business yet? The business will not have employees or anything -- just one person running affiliate websites in his spare time and depositing the money in a bank. Simple as that. The plan is, once I'm eligible for Clickbank to setup a direct deposit, I will have it go under my new Business Checking Account. https://www.wamu.com/business/checking_account/free_checking/default.asp For Paypal, I have a personal account. Now, once I start selling my own products, I should get a separate premier/business account, right? A totally different email that's link to a different bank account (my new Business Checking Account). That way, when people buy products from me, they would see my Business Name or Website name on their bank statement instead of my full/real name. I know for Clickbank merchant account, the transaction statement is CLICK*BANK, but if I want to use Paydotcom and Paypal for selling things, I can use my website name in the Paypal checkout process, right? Ok, finally is the LLC or S-corp Nevada part (or perhaps this should be the FIRST step Huh). I plan to either register an LLC or S-corp based in Nevada as an agent. Should I do this first and get an EIN? Or, get an EIN first and then register my LLC/S-corp? Or, not worry about and use my SSN for now? Let's say I register "My ABC, LLC" (which I could online for a cheap price, right) and then after that, I go back to my Business Checking Account to change the name of the account to my new LLC and then in my Paypal business account change it to my new LLC, right? Thus, far I'm on Unemployment Insurance (in California), and wondering if making money from affiliate marketing is consider a job? I probably won't list it on my UI claim form as it's not a 1099 contract or W2 type of employment, right?
Don't even worry about all that until you make atleast $6,000 for the year. Unless you make 6k, you dont have to worry about reporting. So instead of dishing out money on an LLC or S-corp right away, just concentrate on making some money first
You are self employed as mentioned above and all profits should be taxed as long as it's over your non taxable allowance.