Online Business and taxes?

[Maverick]

Hello everyone, new poster here.

I have a question that has been on my mind for the last few days, I have asked a few people I know if they know the answer, but none have an online business or anything so they don't know.

Anyway to the question.

With an online business, I'll take this website as an example, where the income is generated by ad's, donations, affiliates etc. When this is your only source of income (the website) do you/how do you pay taxes and the such.

Basically what does the government require of you (because they always require something!) when you support yourself this way.

This may be a simple thing for many of you, but I am new to this online business concept - though very much support the idea and am looking at starting my own website business.

Any respose would be great!

Thanks,

Maverick

[Nathan]

Looks like I'm the right person to answer your question because in my country (which happens to be your country too!) as you would know we have to do tax returns after every financial year. Provided the web business is run as a sole proprietor or partnership you would simply have to add your business income to your personal income which would then be put into a tax bracket that determines the %tax you pay. Effectively this is the same as having a job, from a tax point of view.

If you were to run the business under a company then that business would be paying a flat 30% tax, although there is much more reporting and legal/paperwork involved.

I hope I have this right.

[Robert Avila]

Hi Maverick...

What I have in place is a corporation, a business license, and a business bank account in the name of the corporation. I make sure to document any cash flow from my business account to my personal account. My bookkeeper and tax preparer then advises me on tax filings etc.

Wish you the best!

Robert

[Maverick]

Thank you very much for answering my question

Cheers,

Maverick