Online Marketing Tax Tips and Tricks - 0 views
started by Jeff Lancaster on 20 Feb 12
started by Jeff Lancaster on 20 Feb 12
Start a New Topic » « Back to the qbcwmrtgpglfwerrxrod group
started by Jeff Lancaster on 20 Feb 12
That is one possible area for causing confusion with those who do not possess the fine details about the topic being discussed.
Even full length articles do not have the space to cover the basics that would be helpful or necessary for you to know. Be forewarned as you travel in your journey because always suspecting there is something else that is part of the puzzle will keep you sharp. Once you have your initial campaigns underway, then you really have to pay attention to what is going on, and that is why testing and tracking are so valuable.
The belief that Online Marketing is a tax free industry is basically the worst and most dangerous myth in the market. Men and women get into IM convinced that because they are earning money online and being paid through, mostly, PayPal--they do not have to pay taxes on that money. This isn't true! More importantly, failing to pay taxes on this income could easily get you into a lot of trouble! Don't panic, though: it isn't difficult to do taxes when you are a web marketer. Below are a few ideas that can help you.
1. Schedule an appointment with a local Small Business organization. All communities have some kind of small business helping association or organization (generally run via a local community or city college) that has many trained experts on hand to help you both set up your business and make certain that all of your tax issues are carefully and properly taken care of. The wonderful thing is that this resource is almost always free of charge.
2. Track everything. Let's repeat that as it's important: keep track of each and every detail. This is certainly easy enough to do via Excel. Set up a spreadsheet and record every last cent you earn with your Internet Marketing business and also one that tracks each and every cent you spend on your IM efforts. Make sure you keep each receipt and invoice for the money you spend.
3. If you've got the money for it, retain the services of an accountant. This would allow you some freedom in the tracking of all of your taxes and business numbers. You tell them how much cash you've earned, show them how much you've spent (you'll need proof of these things) and they take care of the rest, particularly at tax time.
4. Pay towards the taxes you will owe throughout the year. A good rule of thumb is to pay 30% of each sale. You can do this every three months or even each month by making Estimated Tax Payments to the IRS. The IRS is set up now to get estimated tax payments anytime or think you need to be making them. This way you'll not have an eye popping number that you owe at the end of the year (which will be particularly stressful if you haven't saved up for it). Yes, business on the net migrated from offline, but that does not mean everything is the same.
It really all depends on who you talk to, and some would go so far as say it can be unpredictable. If you are smart about how you go about your business, then you will understand the implications in terms of diversifying. Considering hot penny stocks and other approaches, look at the big picture that includes both your business and the net environment. Actually, a discerning mind that is willing to openly think about the negatives later on is what you need to have to last well into the future.
However, there will be times when you just have to be bold, and also remember that just about everything in business has an element of risk with it. What is better is that if you have somehow overpaid through your estimated tax payments, you will get a repayment just like you would if you were working for a traditional company. Make sure you speak with someone at the IRS to make sure you get set up correctly.
5. Find out which tax deductions you are entitled to take. If you wish to manage your own business in your own home, lots of things including the payments you make for your utilities become tax deductible just like the money you'll spend on supplies or business equipment. Your accountant or an agent from the IRS can help you figure out which deductions you can claim at tax time.
It isn't difficult to get intimidated by the idea of paying taxes as an online marketer. The good thing is that there are plenty of resources to help you make sure you stick to the law and keep a healthy share of the profit you make!
Even though we know these ideas and approaches have great profit potential, we do not know if they are suitable for your model.
Just about every business on the net can have more streams of income even if they come from an expansion of marketing methods.
Remember that the web is a highly dynamic environment, and lots of people have lost their main source of income overnight due to forces beyond their control. We have personally seen this happen to very many people based on forum discussions as well as personal acquaintances in business. It is tempting to fall into the whole thing about an autopilot income and business using boudoir photography or some other approach, but beware because that can be dangerous. There are too many very real dangers in IM, and they all have to do with the fluid nature of it as well as all the other people vying for your business share.
Additional Links:
Tax Advice for Internet Marketers
Web Marketing Tax Hints and Tricks
Online Marketing Tax Tips