Welcome, When it comes to taxes, no question is "stupid"
We will be glad to help. Tell us more.
What state are you located in??
Do you have a Federal I D Number??
Do you have any idea how much income will come in to you this year??
Hello Lividsquid316. If you have not incorporated a business around the website then I believe it is treated as a sole proprietorship and that the income just flows through to your personal income (double check on that to make sure!). There might be some benefits to setting up a simple LLC to make sure that your personal assets are not at risk if someone files a claim against the "company". The cost of setting up a company should be as low as the Franchise Fee in your state ($150/year here in Arkansas). Good luck with the venture!
You may want to consult a tax consultant in your area. Typically, if you are doing any business, the business should be claiming the income. Have you looked into establishing the business entity, including incorporation, creating a business plan, filing for a tax identification number, etc.? If you are unsure how to go about all of this, I would recommend hiring a business consultant to help you through the process. You can contact me if you want assistance, I am a business consultant specializing in small business startup and development.
You should definitely set up a business entity. Check out www.choosewhat.com for a comprehensive checklist for setting up your business.
The Virtual Office Goddess, LLC
I agree about setting up the business entity, but there is a lot more that should be discussed prior to doing so. Let's face it. Starting a business is a rollercoaster of emotions, having a consultant with you is like having someone that knows all the bumps and dips on the ride.
I'm starting a small online editing company. I'm the only person who will be working for this site. It doesn't cost me anything except for buying the domain and webspace. Since I have no employees and my wages are entirely dependent upon people sending in manuscripts - something that hasn't happened yet and might not for some time - do I need to register for taxes on this website? I'm sorry if this seems stupid. This is all very new to me.
Thanks for any help you can give!