The misconception that Web Marketing is a tax free industry is just about the worst and most dangerous misconception in the market. Individuals who enter it usually feel that just because they are making money and being paid through, for instance, PayPal, they do not have to pay taxes on what they make. It’s not true! More importantly, failing to pay taxes on this income could possibly land you in lots of trouble.
One of the biggest and most potentially risky misconceptions about Online Marketing is that it is a tax free industry. People enter it thinking that because the money they earn comes to them largely through online sources like PayPal that they do not have to pay taxes on the things that they’ve earned. This is not true! What’s more important is that if you don’t pay taxes on this money, you can actually end up in a lot of trouble! You should not panic, however: it isn’t really hard to do taxes when you are an online marketer. Here are some things which could help you.
1. See your local Small Business organization. Just about every community has a Small Business Association (usually working through a community college) that employs professionals on both starting your business and making sure that all of the details (like taxes) are handled. What’s especially great is that this resource is just about always free of charge.
2. Keep an eye on every little thing. Let’s say it again: monitor every last detail. Excel makes this simple enough. Begin a spreadsheet of every single penny you generate through your Online Marketing efforts and another that documents every single penny you spend on your Web Marketing efforts. Keep all of the statements and receipts that document these financial transactions.
3. If you could afford it, work with an accountant. This would allow you a bit of freedom in the tracking of all of your taxes and business numbers. You tell your accountant what you’ve made and paid out (you should can prove this with official documentation) and they take care of everything else--especially during tax season.
4. Pay in toward the taxes you’ll be owing at the end of the year. 30% of every single sale is the fundamental guideline you’ll want to follow. This can be accomplished through quarterly Estimated Tax Payments or even every month with the IRS. The IRS now has the capability to get estimated tax payments if you think or want to make them. This would keep you from having to pay a gut wrenching amount at the end of the year (which, if you haven’t saved up for it, can be particularly stressful). What is better is that if you have somehow overpaid through your estimated tax payments, you will get a refund just like you would if you were working for a traditional company. Be sure to speak with someone at the IRS to get this set up the right way.
5. Find out about every one of your allowed write-offs. When you manage your own business a lot of things such as your utility payments, etc are tax deductible (as is any money you spend on business equipment or supplies). Your accountant or someone from the IRS can help you figure out what all you can take once it’s time to pay taxes.
It’s not all that hard to become intimidated by the idea of paying taxes when you are a web marketer. Luckily, there are a lot of resources available to help you follow the law and still keep yourself from losing your shirt to the IRS!If you’re looking to find a lead generation model for internet marketing you must take the time to watch this awesome short film by clicking to this link - twitter. You can also find Ways togetLeads online extremely entertaining.