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Adsense JV where my partner does the work (we split 50/50).Any tax concerns I should have?

Discussion in 'Business & Tax Advice' started by DPatel304, Jun 4, 2013.

  1. DPatel304

    DPatel304 Regular Member

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    Basically my partner is using my adsense account and doing all the work. All I do is collect the payment from google, and split the earnings with him.

    We are earning about $1000 a month. Is there anything I should be concerned about in this situation? There's a decent amount of funds going to and from my account.

    I'm thinking about scaling up and getting another Adsense account (by opening an LLC) and doing the same thing. I know this partner is doing the same thing and has multiple Adsense accounts, but I want to know what sort of tax issues I could run into with this.

    Thanks in advance.
     
  2. mrsix

    mrsix Power Member

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    Withhold an agreed upon percentage from the issued payments and keep in an interest bearing account until tax day. Split the part remaining after putting the "taxes" in the tax account. Anything left over after paying your tax bill gets split.
     
  3. Izzma

    Izzma Regular Member

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    Sounds like a very cushy job to me.

    Good Luck :)
     
  4. DPatel304

    DPatel304 Regular Member

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    Sorry, could you be a bit more specific?

    Is there a way to know how much I will be taxed on this if I know roughly how much I'm paying and earning each month? If it's not that big of an amount, I don't mind being the one to pay the taxes, I just don't want to find out on tax day that I've lost most of my earnings to taxes and my partner hasn't.

    If all goes well, it will be. I've only been doing it for a month and I'm still skeptical about the thing. Seems too good to be true, so I'm still a little worried about my Adsense account being banned, but, for the time being, I'll enjoy my earnings.
     
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  5. mrsix

    mrsix Power Member

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    Anywhere from 10% to 39% according to this .

    Also consider state income tax if that applies to you.