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Your Affiliate Business and Taxes



AliExpress by Alibaba.com


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.

Vickie J Scanlon has a BBA degree in Administrative Management and Marketing. Visit her site at: http://www.myaffiliateplace.biz for free tools,articles, ebooks, and how to info or check her blog for additional insights to the Affiliate Business - http://myaffiliateplace.blogspot.com

AliExpress by Alibaba.com


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MSG Networks Inc. Reports Fourth Quarter and Fiscal 2019 Results  Nasdaq

Fiscal 2019 fourth quarter revenues of $168.4 million. Fiscal 2019 fourth quarter operating income of $70.2 million. Fiscal 2019 fourth quarter adjusted operating ...


How Dennis Publishing’s affiliate business boosts its ads performance - Digiday
How Dennis Publishing’s affiliate business boosts its ads performance  Digiday

By improving its affiliate strategy, traffic to Dennis Publishing's site Expert Reviews increased and ad performance improved.


Tribune Media Profit Falls Amid Higher Programming Expenses - Hollywood Reporter
Tribune Media Profit Falls Amid Higher Programming Expenses  Hollywood Reporter

Tribune Media, which has agreed to be acquired by broadcasting giant Nexstar Media Group for $4.1 billion, reported lower, but better-than-expected ...


Break da Bank Again Respin – Gameburger Studios, for Microgaming - AffiliateINSIDER
Break da Bank Again Respin – Gameburger Studios, for Microgaming  AffiliateINSIDER

Break da Bank Again Respin is the latest online slot developed exclusively by Gameburger Studios, as part of its new agreement with Microgaming.


San Antonio’s Planned Parenthood clinics have already taken Title X funding hit - San Antonio Express-News
San Antonio’s Planned Parenthood clinics have already taken Title X funding hit  San Antonio Express-News

Last week, Planned Parenthood withdrew from Title X, a $286 million federal program that covers the cost of birth control and other family planning services for ...


Affiliate Marketing Platform Market Is Thriving Worldwide, Business Status and Industrial Outlook till 2024 - X Herald
Affiliate Marketing Platform Market Is Thriving Worldwide, Business Status and Industrial Outlook till 2024  X Herald

“Affiliate Marketing Platform Market” research report provides an actual industry viewpoint, future trends and dynamics for market growth rate, market size, ...


Google may be about to kill affiliate marketing links - Fast Company
Google may be about to kill affiliate marketing links  Fast Company

Google is building up its commerce business. Media companies should be scared.


Publishers are changing page templates for shopping content pages - Digiday
Publishers are changing page templates for shopping content pages  Digiday

Commerce has grown from a stream of incremental revenue into a lifeline for media companies causing publishers to overhaul the way those pages work.


Edited Transcript of FOXA.OQ earnings conference call or presentation 7-Aug-19 8:30pm GMT - Yahoo Finance
Edited Transcript of FOXA.OQ earnings conference call or presentation 7-Aug-19 8:30pm GMT  Yahoo Finance

Q4 2019 Fox Corp Earnings Call. Aug 20, 2019 (Thomson StreetEvents) -- Edited Transcript of Fox Corp earnings conference call or presentation Wednesday, ...


Competition, regulation, pricing weigh on potential Univision sale - S&P Global
Competition, regulation, pricing weigh on potential Univision sale  S&P Global

At its peak, programmer Univision Communications Inc. was the unquestioned TV leader among U.S. Hispanic viewers. But more than a decade after Univision's ...


A Chic Living Room That's Also Kid-Friendly! - Architectural Digest
A Chic Living Room That's Also Kid-Friendly!  Architectural Digest

Oh Joy! founder Joy Cho walks us through her plans for a cozy living room that's also suitable for kids.


Affiliate Software Market – Expected to Boost the Global Industry Growth in the Near Future : HitPath, Linkdex, Resels - Indian Columnist
Affiliate Software Market – Expected to Boost the Global Industry Growth in the Near Future : HitPath, Linkdex, Resels  Indian Columnist

HTF MI released a new market study on Global Affiliate Software Market with 100+ market data Tables, Pie Chat, Graphs & Figures spread through Pages and ...


Viacom Q2 Profit Rises 3% Despite Dips in Advertising, Affiliate Revenue - Variety
Viacom Q2 Profit Rises 3% Despite Dips in Advertising, Affiliate Revenue  Variety

Viacom eked out a profit in its fiscal second quarter, even as revenue from several of its main business lines decreased.


Retail Briefing: Retailers are trying to loosen Amazon’s grip on affiliate revenue - Digiday
Retail Briefing: Retailers are trying to loosen Amazon’s grip on affiliate revenue  Digiday

As customer acquisition costs through Facebook and Google rise, retailers are turning to publishers for help. Affiliate partnerships with publishers is becoming ...


The 25 Best Affiliate Marketing Companies in 2019 - Small Business Trends
The 25 Best Affiliate Marketing Companies in 2019  Small Business Trends

In America, the spend on affiliate marketing is projected to hit $8.2 billion USD by 2022. Here are 25 of the best affiliate marketing companies for 2019.


NeoPhotonics' revenue rises 3% in Q2 as Huawei shipments only partially subject to export ban - Semiconductor Today
NeoPhotonics' revenue rises 3% in Q2 as Huawei shipments only partially subject to export ban  Semiconductor Today

For second-quarter 2019, NeoPhotonics Corp of San Jose, CA, USA (a vertically integrated designer and manufacturer of hybrid photonic integrated ...


Better Collective revenues up double digits on US investment plan - EGR Global
Better Collective revenues up double digits on US investment plan  EGR Global

Better Collective today reported Q2 revenue growth of 64% to €15.8m as the business continues to reap the rewards of its US investment strategy.


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