Tax Question

I will probabaly see a CPA at some point but here's my situation.

I started IM with adsense in Jan 2010. But since my adsense is banned i've been using my friends' tax ID. So he just sends me the amount every month.

So when i do taxes next year. I have to report my income on HIS taxes right and nothing on mine?

2. Won't IRS get suspcious and ask me where my money is coming from in my bank account?

3. I need to setup an LLC or something to write off things. Would a CPA be suited for questions such as what can i write off? Because I have been reinvesting a lot of my adsense checks back into my own network of sites for advertising, promotion, servers, buying domains, hosting etc. can those be written off if i don't have any company setup and I'm just a sole proprietor?

You still need to show the income as your own regardless of where it came from. Setting up an LLC will give you some protection in case of a disaster. Sitting down with a CPA would be your best bet to understand how to handle your situation.

Depending on your state you can set up an LLC online for very little cost.

if i'm doing that aren't i getting taxed TWICE?

LLC = 1 tax (personal). If you do a C corp then double taxation. Your friend's business should 1099 you at the end of the year, which you will use to show earnings from them (you can just be a consultant or something). Def see an accountant

If i setup an LLC. How do i make it so the business is setup correctly so

1. I can apply to adsense
2. It doesn't get linked to my personal details,address,etc or google will ban it.
3. Have a physical address that can be applied to adsense when applying but somehow receive my checks.

Where can I get LLC fairly inexpensive but trustworthy? Should I do this through a lawyer.

I say just do it through a lawyer

supamanjon said:

if i'm doing that aren't i getting taxed TWICE?

Click to expand...

your friend is being taxed. If he's paid you over $600 he can push the tax on you.
I would try to get the cpa networks to start paying you thru your LLC asap and not with your friend. The longer you wait the more of a disaster this will turn out for the both of you.

Have him send you a 1099 ... that way the tax passes to you...no one gets in trouble that way. info here
http://www.irs.gov/businesses/small/article/0,,id=179114,00.html

from my understanding.. you can start claiming write offs once you get the LLC up and start getting paid through it. I wouldnt know but I want to say everything you have done up to this point has not been going through the llc...therefore you cant write off like it was.