If Im going to make money from an affiliate network, how much should I set aside for taxes at the end of the year when I get the 1099 form. I was told 17% Seem correct? Also I have 2 other people who run this thing with me. When I write checks out of the company checking account, will that money get income tax taken out? Please let me know Thanks!
If you are asking questions like this then I would advice you to seek professional advice from an accountant. It will be money well spent.
Amen. You do not just have to worry about income taxes. There is much more involved with paying yourself and others from the income of a business than just income taxes. The IRS can be brutal about this stuff. Talk to a professional who knows your state and the federal rules before you make a major mistake.
I highly recommend you see a tax professional. There are two reason, one; they will know the answer to your questions, and two; you can wrote off the expense of hiring a tax professional. It's also important to note that if your running a business you might be missing many write-offs without knowing and again, a tax professional will know this. Best of luck with your business.
The answer to you questions are maybe and maybe and no I'm not being a smart ass. Please at least visit a CPA to get set up correctly.
% how much u pay for taxes it depends how much u earn, as for different range of earning the tax % is different, so it could be between 17% to 45% how much u might expect that you should check with your tax consultant or tax filer, and also usually an estimated tax needs to be pay in every 3 months, otherwise there is penalty fee also.
It really depends on what kind of revenue you are looking at, are you a sole proprietor or corporation? If you are talking about just a couple thousand and are running it as a sole proprietor, there is really no need to consult a CPA. Just go to the IRS site and check out Schedule C Publication 334 and their Small Business section. The Self-Employment Tax alone is 15.3%, so I would say 17% is a tad low. But again it depends on how much you expect your annual revenue to be and how much your deductible expenses will be.
I would advise you to do some research and learn a bit about taxation in your country. In the UK it's very expensive to employ an accountant or a tax consultant and you just wouldn't do it for small part-time earnings. It would cost you everything you've earned and more. I'm assuming it's the same in the US so it could pay you to take some time out, get a calculator and have a look at the tax rates.
It depends on your state/country. In the US I'd recommend you need to talk to the CPA first and foremost. The first year you can get away with not paying quarterlies, but after that if you show a profit you will have to pay them. Which sucks. But this applies if you make your money full time online (like me) where you are fully self employed. Not just doing it on the side, and have another full time job somewhere. The amount you 'set aside' depends on how much you are making. You can bringing in good money before expenses. Then once you start adding in your home office, web hosting, domains, advertising campaigns, content, shipping, and so on and so on. You could drop 2 tax brackets. A CPA will work with you to give you your quarterly estimates. These can fluctuate. Especially in summer months.