Business License For Forum?

Business
1

I have an automotive forum and most likely will start to ask some online vendors/sponsors if they would like to advertise obviously through payment. I’m assuming they may want invoices or proof of payment, etc. to possible claim on taxes each year. Do I need to purchase a business license or what would the process?

Also another part I might start income through the forum website is offering users to become paying members. Would I personally need to claim this for taxes? Along with the income from sponsors?

2

You can usually do business as an individual by obtaining a federal tax ID from the IRS and filing as a sole proprietor. You can still take business deductions, etc. although there are frequently benefits to forming a company, which you can do at any time. You probably won’t need a license but that goes state by state. You will personally take all income and deductions related to your business.

Sole proprietor is an easier way to start up in many cases, so you should look in to it!

3
  1. You don’t need a license of any sort.
  2. If you don’t start a corporation (in Canada) then yes it would all be considered personal income and must be reported as such. If you do incorporate, then the corporation will pay taxes on the income and you will then pay taxes on whatever you pull out.