I have a kind of a noob question regarding affiliate programs. Do I have to register an actual company to be able to create an affiliate website or not? And are the earnings from the sales taxable?
No, you do not have to start up a company to be able to become an affiliate / create an affiliate website. Yes, your earnings from affiliate schemes are taxable in most jurisdictions. Having said that, it is very much worthwhile to start up a company in one of those tiny offshore tax havens. Many of those offshore tax havens offer corporation structures that are exempt from paying taxes on the revenue earned outside that tiny offshore tax haven. It takes a while to get the hang of affiliate schemes and it also takes a while to find the right offshore tax haven, but in the end...paradise on earth awaits you!
No question is a noob question. Everyone has to start learning. And you are just learning. No in many cases you do not require a company. Some merchants require that you write a business name but that does not mean you need a company. You just need a name for your company. The earnings are not taxable if you hide them by directing your money to a foreign account but otherwise they are taxable. You are obliged to pay a tax. If there are any more questions regarding affiliate programs feel free to ask and do not be shy. We are all here to help and learn.
This is like saying do I need to startup a company to do business or buy/sell stuff. I don't think all users on ebay owns a company.
I think his question is, if he has to start a company in order to start his own, affiliate program company.. You don't have to, but you should obviously... If you don't you will have to pay tax from the publisher earnings, as your personal tax, and then pay them out, as a company, you collect w8 and w9 forms, and pay them their money, stating its their money, to the IRS..
Interesting, You will hear different views depending on where you operate from, U.S. or Offshore, so incorporating as well as taxes are different. Simply put, if you earn significant income, then by all means, incorportate, but to start, don't bother, it will cost you more to incorporate than you will likely earn in first year, so save your money. As to taxable income, technically, anything you earn is taxable, in U.S., it is over $600. before Uncle Sam wants his bite, so again, don't worry about it until you earn more than $600. in a tax year. Good luck to all, Mike