IM and taxes. Register as a business?

Vcize

3 what?!?
Aug 25, 2010
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This is my first year in internet marketing, so I still haven't been through a tax season with all this web stuff I've done.

All this internet marketing stuff is just a side-job/hobby for me. I work full-time. However, unlike my ebay side-business, it adsense, cj, amazon, require tax information when making payments.

By the end of this year, I'll probably end up being taxed on about $7k-$10k worth of income. Of course, with that I've spent plenty of money on domain registration, hosting, buying websites, buying marketing products, etc.

So, do you guys go through the effort of registering an official business for your internet marketing so you can write this stuff off? If so, what is your annual income/expenditures from this hobby/business?

Or, is there another (potentially better?) way to handle the net profit vs. gross revenue of your IM income when doing your taxes?
 
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Depends on where you are.

I am actually heading to the office to get registered, as my local gubmint is keeping a closer and closer eye on stuff like this.

::emp::
 
emp, where do you reside?

I just registered mine today too, for taxation purpose.
 
Switzerland.

Being German living here, and all the tax fraud going on, Swiss authorities are scrutinizing German accounts closer than before.

::emp::
 
As far as I know, you don't have to register as an "official business" to write those things off. I didn't when I was starting out and I still took all related deductions just fine.
 
+1 on the accountant. might cost you a $500+, but you'll be glad if/when you get audited. Taxes are one thing I don't mind paying real money to have it done right.

I haven't registered yet and still get all my write offs.