My Idea Online
  • Privacy Policy
  • Contact Us
Friday 31 March 2023
  • Login
  • News and Society
  • Automotive
  • Business
    • Business
    • Communications
    • Employment
    • Finance
    • Legal
    • Home Based Business
    • Marketing
    • Online Business
    • Product Reviews
    • Real Estate
    • Self Improvement
  • Home and Family
    • Home and Family
    • Family
    • Home Improvement
    • Kids and Teens
    • Reference and Education
  • Lifes
    • Arts and Entertainment
    • Cancer
    • Entertainment
    • Food and Drink
    • Fashion
    • Health and Fitness
    • Humor
    • Lifestyle
    • Music
    • Recreation and Sports
    • Writing and Speaking
    • Women’s Interests
  • Online
    • Computers & Internet
    • Site Promotion
    • Web Development
  • World Affairs
No Result
View All Result
  • News and Society
  • Automotive
  • Business
    • Business
    • Communications
    • Employment
    • Finance
    • Legal
    • Home Based Business
    • Marketing
    • Online Business
    • Product Reviews
    • Real Estate
    • Self Improvement
  • Home and Family
    • Home and Family
    • Family
    • Home Improvement
    • Kids and Teens
    • Reference and Education
  • Lifes
    • Arts and Entertainment
    • Cancer
    • Entertainment
    • Food and Drink
    • Fashion
    • Health and Fitness
    • Humor
    • Lifestyle
    • Music
    • Recreation and Sports
    • Writing and Speaking
    • Women’s Interests
  • Online
    • Computers & Internet
    • Site Promotion
    • Web Development
  • World Affairs
No Result
View All Result
MyIdeaOnline.com
No Result
View All Result

Your Affiliate Business and Taxes

idea online by idea online
in Online Business
4 min read
2k 104
0
13028f764fdc3d1dca0b62fc 1920

13028f764fdc3d1dca0b62fc 1920

1.2k
SHARES
2.6k
VIEWS
Share on FacebookShare on Twitter


Starting a home-based business on the Internet is easy you say.You have your web page built, your affiliate links and you”re
ready to go. Not really, you need to make sure you have all your i”s and t”s crossed when it comes to taxes.
Getting Started
First, you will need to register your business name with the city government. When I registered my business name with the
city I was charged $11 — so expect to pay a small fee when filing this legal document with your local goverment.
Second, you need to apply for an Employer Identification Number with the Department of the Treasury (IRS). To file for an EIN,
you will need to complete Form SS-4. You can find these forms in post offices, public libraries, online, or by contacting the IRS.
Once you receive this document, keep it in a safe place — in other words, don”t crumple, stomp, or throw away — this identifies you and your business with the U.S. government and you will need this number when you file your taxes.
Third, you will need to check with your state government to determine if you need any specific licenses. Such as Retail Sales Tax Permit — if you are planning on selling items offline or online.
Fourth, you may want to open a Business Account at your local bank once the money starts to roll in. Keeping your money separate from your family account — helps you to keep your accounting accurate
for your business.
What percentage of your income will go to
your State and Federal Government?
You will need to pay the following taxes, at the following rate,on a quarterly basis:
States Taxes — 3.7%
Federal Taxes — 11.3%
Social Security — 12.4%
Medicare — 2.9%
The first year in business is difficult, because you have no idea what you will be making–You will need to make a conservative guess. However, you will only pay what you owe against that of your
expenses (your net income). For example, if you believe you will have $3000 in expenses during the year — and you believe in your first year, you will make $6000– you would report the following:
$6000 (Money Made)- $3000 (Expenses) = $3000 (What you owe)
This amount would be divided among the four quarters within the year and paid to your State Government and the Federal Government. If you find that you will be making more and you have paid in for one quarter — you will have to adjust the balance and divid it between the remaining quarters.
The following is what you will submit to the Federal Government:
1) Federal Taxes-11.3%, 2) Social Security-12.4%, and 3) Medicare payment-2.9%.
The State Government will receive only the 3.7% of your net earned income.
(Please note: If you are unsure about anything, you should enlist the
help of a CPA, regarding tax matters).
Your estimated taxes are due on the following dates throughout the year:
April 15
June 15
September 15
January 15
To obtain more specific information you can read IRS Publication 505: Estimated Tax payments.
Note: You are not required to make estimated tax payments until you have income not subject to withholding
on which you will owe tax. If you don”t make your first payment until a later period, you must divide your entire estimated tax by the number of payment dates remaining. If, for example, you
have three payment dates pending, you would pay one third of the total tax by June 15, the other third by September 15 and the last by January 15.
Typical Expenses To Deduct
Here is a list of some of the expenses you can deduct.
1. Your home mortgage — If you use a room solely for conducting business then you can take this deduction. There are a couple of different formulas to determine
the percentage of your home that is used for your business.
You can use the “number of rooms” method or the “area method”.I would suggest using the “area method” because I can”t imagine
having a home where all the rooms are the same size.
With the area method, you would take the area of your home office divided by the area of your home. Example:
Your Office= 10″ X 10″ = 100 square feet
Your home is 1000 square feet
Your deduction = 100/1000 or 10%
2. Indirect Expenses — with indirect expenses you will only be able to deduct the area percentage (Note: use area percentage calculated above) of the total cost. These indirect expenses would include such things as:
House payment
Utilites
Telephone
Garbage collection
Internet connection (If other people are using the Intenet)
3. Direct Expenses — these are expenses that relate only to your business.
Supplies
Advertising
Business account bank charges
Keeping Track of Expenses
To keep track of all your expenses. and you are comfortable working with a spreadsheet software, I would suggest purchasing a small business accounting package such as QuickBooks or Peachtree
Accounting.
To conclude, this definitely is not an exhaustive list of what you need to know. However, this will give you a beginning as to what you will have to be aware
of when starting a home-based business. As your business grows, your CPA will be able to assist you and keep you on the straight and narrow to your success on the Internet.

Tags: Online Business
idea online

idea online

The internet makes it easy to start a business but what should you start? Discover the right business for you to start with our definitive list of the best online ideas

Related Posts

3ae5600398d251d42357989e 1920

How Podcasting Works

2 days ago
66e21a123339fb6091fe8e38 1920

How To Write eBay Auction Descriptions That Get Bids

4 days ago
d779075a308162a116f59274 1920

Writing articles for Ezines – The Greatest Little Known Secret

7 days ago
9ea78e8a404379a5a238ab64 1920

The dangers of making your business to dependent on eBay

1 week ago
e7c4d8baf08872cb56abcbdd 1920

The 13 Key Success Factors Of A Well-Executed Joint Venture

2 weeks ago
woman 506322 1280

Affiliate Program Mastery: Learn How To Build Internet Capital Goods for Free

2 weeks ago
No Result
View All Result

Recent Posts

  • Fast and Affordable Ways to Upgrade Your Chevy
  • 7 Step Plan To Get Going With Networking
  • Contentment in Gratitude
  • How Podcasting Works
  • A School Loan Consolidation Primer
  • 10 Ways To Make More Money In Network Marketing
  • Web Site Promotion: Getting Exposure For Your Promotional Articles
  • Media Savvy – How To Lead, Persuade, And Influence
  • The importance of having a feedback form in your e-commerce website
  • Repair And Maintenance Of Kitchen Faucets
  • A Sign Or Just A Rainbow?
  • Why You Should Eat Lentil Soup at Least Once a Week
  • Impotence
  • Things You Should Know About Vitamin K’s Unique Power
  • How To Write eBay Auction Descriptions That Get Bids
  • บริษัท
  • โรงเรียน
  • ก่อสร้าง
  • บริการ
  • กฏหมาย
  • ท่องเที่ยว
  • พนัสนิคม
  • ผู้ผลิตสินค้า
  • อิเลคทรอนิคส์
  • ราชการ
  • ไทย

© 2020 myideaonline.com - property for rent - property for sale.

No Result
View All Result
  • Home
  • Online Idea Content
  • Contact us
  • Privacy Policy

© 2020 myideaonline.com - property for rent - property for sale.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In