[tldagent]

Originally Posted by tedology

Do you have to get a business license? Register your site's name? Create a separate bank account and such?

If there is an article or someplace on the web I can find these answers (and more!), I'd greatly appreciate it.

Any information you can provide would be helpful. I've thought about meeting with a tax professional to find out my options so I don't do anything illegal.

Thanks for your help!

Ted

Ted, good question. Whether it's a forum or a small business venture, profit is profit no matter where it comes in from. If you are to get serious about this and plan to make money online with forums or website then I'd recommend creating an LLC. This is a limited liability company, (separate entity) that you can use for your business income. Likewise you can use it for business expenses. You'll want to get quickbooks and make sure you get an EIN Number, (comes with the llc) and is basically a separate entity, providing insulation from personal assets but not a full blown S corp and taxed more like a sole proprietorship.

An LLC is a separate entity. It has it's own social security number, (EIN) and is it's own identity. You would simply be an officer of the LLC. Income the LLC makes would not necessarily be income you make. It's like having an 'S' Corporation but not being taxed like one while protecting your personal assets.

Your hosting is an expense, software an expense. Your income would be donations or possibly more and your personal money is separate from your business income. You'll have owners equity or investment and owners draw, (which is the money you take out). This can be set up in a program like quickbooks... EASY.

Take it easy, don't sweat it. If you don't have a business then any income receive should be claimed as, 'Other Income', (if not LLC). It's not a big deal, ask for advice or tips and you'll find that many people are willing to give. Starting out, don't worry to much. You can accept up to $xxx without taxation as casual income in many states in the US. After that you "SHOULD" report it. If you plan to make more or go into business, the go for the LLC which will cost under $200 in most states.

If you need assistance, just ask.