I've just read that clickbank issues an IRS Form 1099 at the end of every year to affiliates to fill in which details earnings paid by clickbank. If you are in a partnership and split your profits it is not fair to pay tax on the full amount of commissions as you are splitting the amount. I'm new to clickbank, can anyone shed any light on this? thanks.
The half (or whatever proportion) of the commission that the "official recipient" pays to the other partner is tax-deductible as a business expense (you'll need a receipt for it), and each therefore pays the income tax only on their own half. I'm not an accountant and not qualified to give tax advice, but I understand that's the usual arrangement when people "share" an account.
I'm not a tax expert nor an American to know American tax laws. The end and final answer is ask your accountant. The informal response would be that if you're in a legal partnership (Yes, LEGAL) than you would both pay taxes on total earned as partners. If you are just doing this with a buddy of yours and you guys aren't a LEGAL partnership, then the person with the name on the account will be expected to pay the taxes.
That's not so in the UK. A simple receipt is all that's required - it's no different from any other business expense. Forming a legal partnership, on the other hand, would have huge additional consequences, including joint and several liability for each other's income tax! Exactly so. You'll be able to deduct a few other little costs from your share too - such as use of one room in your home for business purposes (so a proportion of domestic bills) and so on. And don't forget that it's usually possible to get helpful advice by phone from the Inland Revenue without having to give your name or otherwise identifying yourself.
thank you. I'll take into account hosting fees, cost of domains, etc in that case. More for me. I'll talk to the Inland Revenue like you suggested.