Hello there,
Very interesting website, has a lot of useful info.

I have a question and I would be happy if someone can help us out.

We are creating a website which will have some yearly fee for the members and I was wondering how we have to report this income? Do we need to register a company or just add it to our taxes ? Any idea...



Thanks
M.

There is no need to register a company unless you want to. Depending on your region tax laws you would report any earnings as you would normally for an individual, if that makes sense.

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That is true here in US as well...I am not sure where you are from. If you do not register a company, you are considered a sole proprietor and will report the income on your personal tax return, on a Schedule C. Your accountant will or should clarify all this for you.

Jewel

I love Schedule C... it's my best friend

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I will surely talk to some accountant about this here in Florida.

Good luck to everybody

Milena

Hi Milena,

Well, I am in Florida and I know what I told you above to be true here. For years I operated as a sole proprietor until I finally incorporated. I just claimed my income on my tax return.


You still want to talk to an accountant though.

Good luck to you and welcome to the board.

Jewel

There are many advantages to going incorperated but it is not easy to setup by yourself and otherwise it is not free, plus most benefits are not realized until you are making big $$$.

You can register with state/federal as a sole proprietor meaning a one person business and this will make your business look more legitimate on paper, which costs nothing. Or you can just claim the income from your business on your personal taxes, make sure to talk to some professionnal about all the tax write offs available to a small business owner because there are many!

Some lines of business will require your fein (federal employer identification #) to purchase goods from wholesalers, but this will most likely not effect you with a web service business.

Another bit of knowledge, if you are asked for your state business id # your social security # is interchangable....just so you don't think you have to have the bus id if asked for it, you don't.

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