When you buying and sell domain names and making money from that, and when you have several sites with adsense or simular ads, can you register your self a Business. And what kind of business it will be? How hard it is and how much it cost yearly to have registered business in US? And if you register a business in US is there any Tax Deductible Expenses? For example for hosting, or for domain names you buying for sale? Can someone help me with this? Thank you, Mico
not sure if this is how it works in the usa but this is how it works in the uk. if you make any money on a monthly basis you are required to contact your tax office failure to contact your tax office and inform them you are making additional income will result in a back log of tax + a heavy fine or prison. As soon as you add a ad network such as pay per click or cpm you are showing that you are meaning to make profit on your website and thus have to pay tax on it. you may get Tax Deductible Expenses you wont pay tax on anything that you need to work for example: you make 400$ your sever bill is 50$ and your lights and electric bill is 50$ you would only pay tax on 300$ i know when you reach the 66k a year mark you get discount on vat goods tho
You don't need to register a business for tax purposes. You just need to keep track of all income and business expenses and report them as a sole proprietor on your tax return that uses your personal SSN. There may be local requirements in your city that want you to have a business license - even if you operate out of you home - although that has nothing to do with taxes.
If you make for example $10000 yearly and pay for hosting and domains about $5000 for that year. Do you need to pay tax for 10000 or just for 5000?
$5000.. Most expenses are deductible at some level.. Maybe not at full expense, meal and entertainment are at 50%, but a lot of expensible.. Find a local CPA to help you sort out what you need to do to stay legal.. Spend the couple hundred bucks he'll charge, its worth it to have a local person that knows the local laws help you at this point..