Do I Have To Pay Taxes For an Online Business?
Perhaps the most common misconception about taxes and your online business is that the two are not related to each other. Most people think that online businesses are not really taxed. It’s part of the reason more people are attracted to start their very own online business.
If you are a business owner or someone who is interested in starting your own online business, then I am sure you have heard about the controversies of online business taxes.
Most people think online businesses are exempted from paying taxes. However, in reality, online businesses are still required to pay tax dues.
“But I Am Working At Home”
And Other Excuses Not To Pay Taxes
The most common excuse is “I am working from home, therefore I don’t have to pay taxes.” What most people don’t realize is that taxes are actually based on the sources and amount of the income as well as the types of services and products sold; not on the location of the business.
So whether you are working at home, in a store or in a warehouse, you are still obligated to pay for whatever tax is due to the IRS.
Online businesses are taxed just like any other
business. The IRS does not actually collect
income taxes based on how a business operates but instead, it focuses on the form of the business.
Whether your online business is a sole
proprietorship or incorporated, you are still required to pay taxes.
There is actually no big difference between the tax
responsibility of an online business and any other
business settings.
Online Businesses And Federal Taxes
If you have an online business and you are wondering if you still need to pay federal taxes, the answer is yes. But before you go around and complain about the unfairness of the world, you might as well learn more about the federal taxes that you need to pay by contacting SAMSO today.
If you are a sole proprietor of an online business,
any income you earn through your online business will be taxed as income on your your personal tax return.
However, if you have incorporated your business, the way of paying taxes will become slightly different compared to when you are the sole proprietor of your online business.
Sometimes, the tax you pay as an incorporated online business will also depend on the kind of organization. It’s either you will pay tax at a corporate level or it will be passed down to you as an income.
Dealing with taxes and your online business can be quite an ordeal if done alone so it would be much easier if you’d contact experts regarding this matter such as SAMSO. We’re here to help!
Stop by or call us
SAMSO
16756 NE 4CT North Miami Beach FL, 33162 USA
305-974-5800
Tax preparation doesn’t have to be a total headache. We’re committed to making taxes as hassle-free as possible. Whether you run a small business or you are working with a small income, we’ll ensure you get the most money back possible.
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