Taxes - And Your Online Business

(Do I Have To Pay Taxes?)

Perhaps the most common misconceptions 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 that why more and

more people are becoming attracted to start their very

own online business.

If you are one of the many people who is interested in

starting your own online business or if you already

have an online business of your own, then for sure you

have heard about the controversies about online

businesses and taxes.

Most people who don really have a stable background

about online businesses and taxes would most probably

guess that owners of online businesses are able to be

exempted from paying taxes.

However, in reality, online businesses are still

covered with tax dues.

"But I Am Working At Home"

And Other Lame Excuses Not To Pay Taxes

The most common excuse of people who have online

businesses who wish to ditch paying taxes is that they

are "working at home". What most people don 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 obliged to pay for whatever

tax is due to you.

Internet Tax Is Just Like Any Business Tax Basically,

online businesses are taxed just like any other

business. The government does not actually collect

income taxes based on how a business operates but

instead, it focuses on the form of the business.

A business based on the Internet still has to register

for GST and PST (if applicable) just like any other

business. Whether your online business is a sole

proprietorship or incorporated, you will still need to

fill up some important forms so that your online

business can be deemed as legal and so that you can

pay the proper taxes regularly.

There is actually no big difference between the tax

responsibility of an online business and any other

business.

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.

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 PTR or personal tax return.

In addition to that, you are also obliged to pay your

portion of social security and medicare taxes using

schedule SE.

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 either you will pay tax at a corporate level or

it will be passed down to you as an income.

Dealing with an taxes and your online business can be

quite an ordeal if done alone so it would be much

better if you contact experts regarding this matter

such as a lawyer or a certified public accountant.

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