Do you have to pay Fed. tax for a web site.
My friend and me are starting a site and have some big ideas and conections to bring in the money. What do we have to wory about with U.S. taxes?
The web site is a chrisian music web site and we are probly going to return that money to the ministry, one of which is aiding to start a Contemporary Christian Music radio station in Cleaveland Ohio.
Please give me some ideas.
We both are also under 18 so that is another thing that aplies to the taxes.
Your question is pretty broad, but I'll try to help.
If you are going to set up a business, or a site that earns money (even if you're giving it all away), you will be required to pay taxes on that money you profit. You need to research the incorporation laws in your state to find out which type of corporation, whether it be an s-corp, LLC, partnership, or sole proprietorship, is best for your situation. That I can not answer.
But I can guarentee, that if you intend to get paid money or earn money in any way Uncle Sam will want some.
Now, if you want to keep from paying taxes on the money you earn, you need to set up a charitable organization, or do the work for a charitable organization for free. All money will go to that organization, and then they can give it away.
If you still have questions, please post them, and I'll try my best to answer quickly.
Currently in the United States, there is a moratorium on sales taxes in all 50 states for purchases made over the internet. This exists until 2001. The governors are trying to decide what method they should look at to make the internet and other retail businesses operate on an even playing surface field tax-wise. The most recent and dramatic proposal (March 1st, 2000) was to eliminate Sales Taxes nationwide and implement a new taxing system most likely a VAT like in Europe and some other countries.
On all incomes earned you must still pay all taxes, licenses and fees at the local, state and federal levels. Your best bet is to consult firms dedicated to business start-ups. If you cannot afford that then go to your local chamber of commerce and make an appointment with a local SCORE member. Members of SCORE are retired business people who live in your community. They will provide free counseling on your business startup. While they may not know who to run a business on the internet the amount they do know is very helpful. I also recommend joining the chamber of commerce as this is a good resource for information and networking.
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In tax laws there is a difference. Only non-profit organizations get certain tax breaks and possibly tax exemptions. You need to go see a tax lawyer and make sure you fall within the guidelines presented by the IRS so you don't get hit with big penalties and fines later.
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Yea we have to work that all out.
You know whay sucks, My uncle's a lawyer but he had to go to Washingtog State for time he owes the army.
But I will have to get some more info and figure out what my friend wants to do.