Hi all. I am new to affiliate marketing. I am just starting to make some money online. I heard once you reach $600 you have to pay taxes. Well, at the rate I'm going, I think I will need to do that next year. So, I have several questions. Do I need a business license? I heard about some lady who got busted for blogging because she didn't have a license. I don't want to end up like her. I live in Georgia. Also, am I registering a business or do I apply for a licesnse...or is that the same thing? Sorry for the ignorance...thanks!
Hi Moissan, Congratulations! you're going in the right direction. I am actually just starting my canadian pharmacies promotion as well and i'm looking forward to doing great with it this year!
--this post was edited to remove a hyperlink.
@LRoberts ; @MarkAse; @BizResearcher -
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BizResearcher | Window Shopper |
2/15/2011 - 11:29 am
There is a difference between a business license and registering a business name. In most states, anyone conducting business must register the name. Business licenses are issued by cities and counties. Some require all businesses to have a license. Others license only selected business activities.
Registering your business name will allow you to take a tax deduction for expenses related to your business, such as a portion of your internet or web site fees.
Wow, I answered this one a long time ago. Too bad SBA couldn't figure out how to migrate the comments too.
The $600 amount was established under the US Revenue Codes. When a business pays out $600 or more to another company or individual for any reason, the business must provide a 1099-G statement for the company or person to use in filing their taxes.
As for the individual, any money you receive whether it be $1.00 or $1MM, you must pay income taxes on that income. Sources of that income could be insurance payments, payroll, childcare, allimony, or anything thing else.
As for sales taxes, you, as an affiliate, do not make the sales and therefore are not required to have a sales tax permit. The company(s) you represent and send customers to must collect sales tax on the sales they make.
To protect yourself from potential harmful litigation, you should get commercial insurance. That insurance should cover general and business liabilities. You'll also want to get, if advised by your insurance agent, insurance to cover errors and ommissions. There may even be special insurance for advertising publishers you may want or need.
If you work out of your home, don't think your home owner's insurance will cover your business.
I hope this helps.
Kind Regards,
Lee Roberts
Ecommerce Software
--
This post was edited to remove a hyperlink. For posting guidelines, see the Community Best Practices: http://community.sba.gov/community/discussion-boards/introduction/welcom....
Wow, I answered this one a long time ago. Too bad SBA couldn't figure out how to migrate the comments too.
The $600 amount was established under the US Revenue Codes. When a business pays out $600 or more to another company or individual for any reason, the business must provide a 1099-G statement for the company or person to use in filing their taxes.
As for the individual, any money you receive whether it be $1.00 or $1MM, you must pay income taxes on that income. Sources of that income could be insurance payments, payroll, childcare, allimony, or anything thing else.
As for sales taxes, you, as an affiliate, do not make the sales and therefore are not required to have a sales tax permit. The company(s) you represent and send customers to must collect sales tax on the sales they make.
To protect yourself from potential harmful litigation, you should get commercial insurance. That insurance should cover general and business liabilities. You'll also want to get, if advised by your insurance agent, insurance to cover errors and ommissions. There may even be special insurance for advertising publishers you may want or need.
If you work out of your home, don't think your home owner's insurance will cover your business.
I hope this helps.
Kind Regards,
Lee Roberts
Ecommerce Software
--
This post was edited to remove a hyperlink. For posting guidelines, see the Community Best Practices: http://community.sba.gov/community/discussion-boards/introduction/welcome-your-community/community-best-practices.
Wow, I answered this one a long time ago. Too bad SBA couldn't figure out how to migrate the comments too.
The $600 amount was established under the US Revenue Codes. When a business pays out $600 or more to another company or individual for any reason, the business must provide a 1099-G statement for the company or person to use in filing their taxes.
As for the individual, any money you receive whether it be $1.00 or $1MM, you must pay income taxes on that income. Sources of that income could be insurance payments, payroll, childcare, allimony, or anything thing else.
As for sales taxes, you, as an affiliate, do not make the sales and therefore are not required to have a sales tax permit. The company(s) you represent and send customers to must collect sales tax on the sales they make.
To protect yourself from potential harmful litigation, you should get commercial insurance. That insurance should cover general and business liabilities. You'll also want to get, if advised by your insurance agent, insurance to cover errors and ommissions. There may even be special insurance for advertising publishers you may want or need.
If you work out of your home, don't think your home owner's insurance will cover your business.
I hope this helps.
Kind Regards,
Lee Roberts
Ecommerce Software
--
This post was edited to remove a hyperlink. For posting guidelines, see the Community Best Practices: http://community.sba.gov/community/discussion-boards/introduction/welcome-your-community/community-best-practices.
Wow, I answered this one a long time ago. Too bad SBA couldn't figure out how to migrate the comments too.
The $600 amount was established under the US Revenue Codes. When a business pays out $600 or more to another company or individual for any reason, the business must provide a 1099-G statement for the company or person to use in filing their taxes.
As for the individual, any money you receive whether it be $1.00 or $1MM, you must pay income taxes on that income. Sources of that income could be insurance payments, payroll, childcare, allimony, or anything thing else.
As for sales taxes, you, as an affiliate, do not make the sales and therefore are not required to have a sales tax permit. The company(s) you represent and send customers to must collect sales tax on the sales they make.
To protect yourself from potential harmful litigation, you should get commercial insurance. That insurance should cover general and business liabilities. You'll also want to get, if advised by your insurance agent, insurance to cover errors and ommissions. There may even be special insurance for advertising publishers you may want or need.
If you work out of your home, don't think your home owner's insurance will cover your business.
I hope this helps.
Kind Regards,
Lee Roberts
Ecommerce Software
--
This post was edited to remove a hyperlink. For posting guidelines, see the Community Best Practices: http://community.sba.gov/community/discussion-boards/introduction/welcome-your-community/community-best-practices.
james101 | Window Shopper | 5/12/2011 - 7:32 pm
ngoriel | Community Moderator | 5/9/2011 - 8:22 pm
ngoriel | Community Moderator | 5/9/2011 - 8:22 pm
KojoKgosi | Window Shopper | 3/11/2011 - 12:47 am
NicoleD | Former Moderator | 3/4/2011 - 12:25 pm
BizResearcher | Window Shopper | 2/15/2011 - 11:29 am
LRoberts | Window Shopper | 2/4/2011 - 4:31 pm
hootoo | Window Shopper | 5/6/2011 - 3:02 am
hootoo | Window Shopper | 5/6/2011 - 3:02 am
funguy | Window Shopper | 3/12/2011 - 10:58 pm
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