Internet Marketing Is a Business
When you get into internet marketing you are starting a business. Often times this small fact goes unnoticed by many people. To a lot of people it might just seem more like a hobby than anything else because they don’t really devote a lot of time to it, but once you start making money it changes things drastically.
The reason it changes things is primarily due to taxes. I remember the first year I did my taxes after getting started in internet marketing. I had made about a grand or so in commissions. At that point I was still using turbotax to do my taxes and they asked me if I had any business expenses to deduct.
I really didn’t want the extra hassle of doing this extra tax stuff so I was going to claim no expenses. Then I came to the section where it asked me if I had made any other sources of income that wasn’t already reported. It was at that point I realized that my tax situation had changed. I knew I had to report the income on my taxes. Then I thought well if I’m having to report the income I made then I might as well claim the business expenses as well.
There Is Much More To Business Than Just Making Money…
The whole point of this story is that you need to start paying attention to things that you didn’t pay attention when you were just an employee. Unfortunately, most internet marketing courses and training just deal with the mechanics of making money online. They don’t really teach a whole lot about running a business such as taxes, corporate entities, accounting and much more.
There is a pretty good reason why these courses don’t cover these topics. Taxes, corporate entities you choose, accounting is going to be different for everyone since everyone’s situation is different from everyone else’s. It’s at this point when it’s good to start consulting with accountants and lawyers. Their hourly rates may seem expensive at first, but they really can save you a lot of hassle and trouble in the future.
Beginning Steps
I’m not saying to go out and spend thousands of dollars consulting with lawyers and accountants. I am saying you may want to start having your taxes prepared by a CPA, keep track of your business income and expenses, and once you start making some decent income from your internet business consult with your CPA about the best corporate entity for your business tax wise and consult with a lawyer to determine the best corporate entity for you legal wise.
At the very least you should start reading some business books about taxes and asset protection so you are aware of some of the issues that owning a business brings about. This is one area where you don’t want to stick your head in the sand and hope for the best. It might not bite you in the butt right away, but the more you put it off and ignore the worse and more complicated your situation will become. What would’ve been relatively easy to handle at the beginning can turn into a complete nightmare.
Below you will find links to books and resources that I have found extremely eye-opening and useful. As I read new books and make posts related to business training and education I will be sure to update the links below.
Recommended Reading and Training
Books:
Blog Posts
- Coming soon… 😉
If you have any questions or comments, feel free to leave them below.
Thomas