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Tax

  1. #1
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    I make about $25000+ in commission on cj, should i form a corporation? i make about $50000 by being a teacher

  2. #2
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    The best advice is to check with a good tax attorney or accountant. They will do what is best for you based on your total situation. While advice from this forum may be helpful it is a must to have a profesional take a detailed look.

    I could type much better if I had knuckles

  3. #3
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    First, I would also suggest you get an accountant to handle things and give you tax advice. Personally I would suggest that you don't form a corporation. I would just pay taxes quarterly for your CJ earnings(your accountant will help you with this) and be thankful that you have a teaching job that pays $50,000! I have friends who teach that make half of that a year. I guess they need to move to California...

    Core

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  4. #4
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    I don't know about California law, but in Massachusetts there is a "schedule C" form that you fill out for profits/losses from business -- and actually I believe this is a federal form too. It does not require you to form a corporation. It also allows you to deduct legitimate business expenses (like your website hosting, etc.) from the revenue.

    You might want to form a corporation if you have liability issues, of if you have a bunch of employees, but I don't see any other reason you'd want to do this.

    Ralph

    http://www.hockeydb.com

  5. #5
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    If I made over $5000 in income don't i have to fill out a sole proprietorship form for profit or loss from business? or would it be wise to put it under 2 different ss# one for myself and wife?

  6. #6
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    quote:
    Originally posted by Eternity:
    If I made over $5000 in income don't i have to fill out a sole proprietorship form for profit or loss from business? or would it be wise to put it under 2 different ss# one for myself and wife?



    That is the schedule C on your Fed Tax... State tax obviously depends on the state... If you make under 25 grand from your business, you might as well not incorporate... just get your accountant to file normally with the schedule C. You will likely have to start making quarterly tax payments next year though...

    If you start making more money, you should probably incorporate. You can save some money on your taxes and cover your ass from lawsuits.

    http://www.nolo.com/lawcenter/faqs/i...0E3E07E32851A7

  7. #7
    Moderator MichaelColey's Avatar
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    It varies tremendously from state to state. Definitely talk to an accountant.

    Michael Coley
    Amazing-Bargains.com

  8. #8
    ABW Veteran jc101's Avatar
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    I thought there was no tax on the internet? it's from the internet? isn't it?

    Jason

    Jason

    Santa Cruz, CA 95060

  9. #9
    ABW Veteran Student Heyder's Avatar
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    Jason I believe you are referring to sales tax in which case affiliates don't need to worry about it. Even still sales tax does apply if you are purchasing from a company within your own state.

    Income tax applies even if you made money on the moon. The internet is not an exception at all.

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  10. #10
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    Jason,
    The taxes you are thinking of is Sales Tax...you still must pay tax on income that is received.

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  11. #11
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    you have to make quarterly tax payment if you make over $25000 or over $5000?

  12. #12
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    No, the quaterly payment method is simply just a way to make it easier on yourself so that when tax time comes around you won't have to pay one huge ammount all at once. Basicly it's just a way to help you manage your finances better (by not accidently spending all your money and having nothing left to pay taxes) but it is completely up to you whether you do it or not (as far as I'm aware).

  13. #13
    affiliate emeritus missdonna's Avatar
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    Both California and the IRS require you to pay quarterly if you meet certain rules.

    If what is withheld from your paycheck is not close to what you have to pay, you probably meet the rules for next year. But if you had enough withheld last year you don't have to pay quarterly this year.

    See the IRS website about "quarterly estimated payments" for details.

  14. #14
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    Quarterly payments are required by law. If estimated tax payments are not made quarterly you could be assessed a penalty and also have to pay interest on the money the IRS deems should have been paid. At 25K you need to get tax help NOW.

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