You need to form a corporation. Why? Because it makes things much simpler. Put all sponsor earnings in your corporate bank account. Take ALL business expenses out of your business account, with debit card or check. Pay yourself from your business account. Just write a check, and technically be a consultant to your company, not an "employee" which requires all kinds of paperwork and employment taxes for the company. In most states its under $200 to setup a corporation or LLC. Then you go over to IRS website get your tax id number. Now, at the end of the year when you do taxes, you have to do corporate taxes, and personal taxes. But its very easy, because any business account deductions are business expenses, and deposits are income. If you are smart, you pay yourself or invest the rest of the profits and company has 0 income taxes. Now you pay personal income taxes, but guess what? as a consultant to your company you are self employed. Its easy to keep track of your income, since its coming from your company, not 1000 affiliate companies. So this saves you a ton of paperwork. Any portion of your home used only as an office, you can calculate what percentage that equals in rent, utilities, and deduct that. You can also deduct your cell phone as its required for your self employment. You can deduct internet connection costs in your home as required to your consulting. Thats just a beginner course.