Aniston

Affiliate marketers have several websites..right? What if you have a different business dba, t.i.n. number, etc., per website and file taxes separately per "business"? Then you would only pay let's say 20% in taxes per site, on a site making let's say $50K, instead of paying 50% in taxes of all sites combined making $300K as a whole. Of course this would only work if you're making a substantial amount of money...which I'm not...yet . What do you all think? Would this work? Is this worth it?
Just thinking about the tax man this month.

elime

I love the ideas you crazy christians come up with!

edit: Yes, that was very troll-like of me. Forget I said anything.

Aniston

Yes..only if you set up your business as a sole proprietorship or a partnership. If you set them all up as a corporation, this would be the case....uh...use YOUR brain before replying.

shithappens

this is a post for durkadurka4 since his posts are being moderated:

first off, sole prop, partnership, llc (unless taxed as a c-corp) and s-corps are all flow-through... second off, if you did a c-corp all the money you didnt pay in salary would be subject to double tax, so if you paid yourself 100% salary... well, then it's at the personal level again... all the $ is coming to you... it doesn't matter how, you're paying the full amount of taxes on it. the only thing you can really do is do an s-corp and pay yourself a modest salary and pay some dividends to avoid SE tax.

why don't you spend your time making $ and digging out of the 0% tax bracket instead of avoiding the taxes you may one day pay.

Aniston

Interesting. Actually I pay a TON of taxes on my RE Business. My real estate business is set up as a partnership and I'm am trying to figure out the structure I want to set up my AM business. To clarify...I am not trying to avoid paying taxes...I am trying to structure my businesses in way that would benefit me...there is nothing wrong with that and I really shouldn't have used the dark side icon or said the word "avoiding".

turbolapp

She can always ask for forgiveness so it's all good.

__________________
Workflowy Best Free Organizational App. Period.

trumpetblast

If you did something like this, you'd need to create a bunch of different accounts with affiliate networks, one for each company. That way they 1099 the correct company at the end of the year.

The 1099 they send to the IRS is what the IRS will use to determine how much income they expect a company to be showing. So if a network 1099s you for 100K and you only show 50K on your return, you'll hear about it sooner or later.

Would a network be kosher with you setting up a bunch of accounts with different companies tied to each? Don't know, I'm not that big yet.