I am in the process of creating a PTC site (like bux.to) but Does anyone know if i have to report all earnings to the government? The earnings would be through PayPal. Also do i have to report what the users earn? What are some of the othe legalities of starting a PTC site?
Start by telling us what country you live in. If it's the US, the short answer is yes. If you pay out over $600 to anyone who isn't a corporation, you have to file a 1099. Paypal isn't the issue, they are just like a bank. The only money they report is money you earned from them (interest etc for money market accounts). Likewise, if you make over $600 from any single entity, they are supposed to file a 1099 and send you a copy. And consult a business tax expert cause asking on the internet won't cut it with the IRS.