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Tax Question

Discussion in 'Business & Tax Advice' started by supamanjon, Aug 23, 2010.

  1. supamanjon

    supamanjon Power Member

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    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?
     
  2. Nookie Monster

    Nookie Monster Senior Member

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    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.
     
  3. supamanjon

    supamanjon Power Member

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    if i'm doing that aren't i getting taxed TWICE?
     
  4. Affiliate Mgr Dave

    Affiliate Mgr Dave Registered Member

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    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 :)
     
  5. supamanjon

    supamanjon Power Member

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    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.
     
  6. sclairmont1

    sclairmont1 Newbie

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

    tbrizell Junior Member

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    I say just do it through a lawyer
     
  8. CYBERTRON

    CYBERTRON Regular Member

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    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.
     
  9. AboutBizz

    AboutBizz Jr. VIP Jr. VIP Premium Member

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  10. appleman

    appleman Regular Member

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    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.
     
  11. Delboy2424

    Delboy2424 Regular Member

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    get yr friend to post a net return of nil - money in £x, costs incurred £x(same amount).

    This means he will not be liable for taxbable profit.

    The costs incurred will be your "services" agreement which you invoice him for - he pays you with your adsense monies and as such everything is where it should be.... you having income you are responsible for declaring....

    See some of my other posts in this section if you need to know about reducing tax liability.