Before we pay and report taxes, we need to cover your affiliate marketing business as a legal entity. After you’ve worked on your business all year and done a good job of record keeping (hopefully!), it’s time to do your taxes. It’s best to time them before April 15th and after an extensive root canal (just kidding on that last part!).
The simplest business structure: You!
The easiest way to file your taxes is as an individual — technically, as an independent contractor. Also called a “1099” business because this form is used to report a payment to someone who is not an employee (employees report their earnings via a W2 form).
Many people think that in order to go into business, you need to complete a lot of paperwork and register yourself as a corporation and hang up an “open for business” sign. All the hoops have to go through. not so! As far as the Internal Revenue Service (IRS) is concerned, you can be in business as long as you have a legal name, a tax ID number (like your Social Security number), and you’re serious about making big money. are (Don’t forget to pay them their share when you start making some nice profits.)
Under this status, you are a sole proprietorship, and you report this activity (income and expenses as well as net profit/loss) on Schedule C, which is attached to your Form 1040.
Second simplest business structure: DBA
In addition to using your name as a business title (see the previous section), you may find that registering a business name makes a lot of sense. At this point, you’re still the sole proprietor, but with a business name, you can do more.
Registering a business name is also known as registering a “DBA”, which stands for “Doing Business As”. This is also referred to as filing a “fictitious name” certificate or registration. Either way, it is up to you to claim a name for your business under which you can conduct your business activities.
Why do DBAs? For one, some state or local jurisdictions may require it (depending on what type of business it is). Also, DBA is a marketing choice. Helps you sell what you offer. For example, if you have an affiliate marketing business in the medical niche and you work in that market as “Medical Marketing Associates,” you’ll have an easier time looking professional. If you are “Irwin Poopinschmutz” (no offense to Mrs. Poopinschmutz. ).
Also, when you formalize your business name as a DBA, you can take that registration form to your bank and open a business account to make payments, wire funds, loans with your business name. can get, etc.
DBA registration is usually done at the county level or state level. You can call or visit the county government headquarters building or the state capitol to register. Of course, searching online helps too.
The Small Business Administration (SBA) keeps track of all states and their DBA filing requirements. You can find more information on their website at www.sba.gov. Also, should you get a DBA and then need a bank account, we recommend that you consider opening your new business checking account at a credit union because they usually charge less but still They have some basic services that small businesses need.
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