Internet Business

[nick-8318]

Are there any extra steps into becoming an internet business? Like with taxes on profits or anything?

I plan to make some cash off of advertisements and programming work I do on my website but would I have to pay taxes on that? If so how do I get an internet business set up.

 

[Mr. Websites]

No, I don't think you have to. As far as I know, George Bush supports the permanent ban on Internet Taxation.

 

[RJ]

Making money off the Internet is "income", and taxible as if you earned it anywhere else. If you live in the USA you'll have to file and pay taxes on your yearly income.

By law if you are paid more than $500 by a US company, they are required to report your earnings to the IRS on a 1099 form at the end of the year. You'll receive a copy of it as well.

If this is your first business and you want to do it by the books, check with your county clerk on how to start a business. Typically it involves registering your business name in your county, opening a bank account for your business and getting a business license in your city. I first did this when I was 15 and several times since then. It's not too painful.

Good luck.

 

[nick-8318]

Thanks for your responses, I'll look into it.

Btw, How much do you think it would cost to start a small business?

 

[sleepy]

Originally posted by Mr. Websites
No, I don't think you have to. As far as I know, George Bush supports the permanent ban on Internet Taxation.

In this case you Guys there in the States should not risc anything and set him up for another term.

 

[legenddomain]

and the internet tax free thing only goes for private purchases. Check out the 16th Amendment. It says it all on income taxes.

 

[forona]

depending on the type of business. for a sole proprietership, assuming you're going to be licensed, in WA state you're looking at about $15. for an LLC (recommended) it's about a $200 total.

If you have high speed cable or dsl, you can use vonage phone service and get a cheap 1-800#.. you can basically start your business for almost nothing, just depends on how established you want to appear/be and what you want to offer.

As far as the taxes go, income is income. TECHNICALLY, people should pay income taxes when the sell stuff on ebay, or sell junk at a garage sale. The talk about Internet tax was always in regards to creating an internet 'sales tax' rate that would have to be paid. Regardless of how you sell (online or otherwise), you are supposed to pay taxes on that income. It may not be SALES tax, but it's B&O tax, income tax, etc.

Some companies charge sales tax no matter where you are, like ev1servers for example - i'm not sure what that's about, but as far as i can tell they love to take/give money that isn't required.. like paying SCO a bunch of $ for example.

Originally posted by ps2gamer
Thanks for your responses, I'll look into it.

Btw, How much do you think it would cost to start a small business?