Hello, I earned a decent amount of money this last year through IM but did not create any sort LLC or legally start any kind of company. Will I still be able to deduct expenses from my taxes? Thanks.
File as a Sole Proprietorship and you can write off anything you used for business, including gas, your office space, etc.
so i cannot write expenses like gas/office space unless i have a sole proprietorship? Would it be too late to file for one now? Thanks.
See a tax person. A sole proprietor mean you (the sole proprietor) made some money. The government will want you to pay income tax as well as social security tax on it. And since you did not file quarterly, there will be a penalty. Get this set up for 2007.
You don't have to do anything in advance (at least from the federal standpoint) for a sole Prop. You will just add a schedule C to your normal 1040 filing.
Depends on the country you in. In some, you have to register first before you can officially be in business. If you don't register and do business as a company, then thats illegal. So, you wouldn't want to claim anything before the day you registered.