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Liability & Legality


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when do you go from making a bit of cash, to paying tax on your earnings?
Old 01-16-2008, 05:30 PM when do you go from making a bit of cash, to paying tax on your earnings?
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you start off making a couple websites for people, maybe getting $100 here and there, not much. Then you increase your client list and have a steady flow of money from these websites.

Where is the point where you think, im making some good money i should be paying tax on this? and do you have to register yourself as a business or self-employed or what?

im unsure how to approach this
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Old 01-17-2008, 02:40 AM
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Are you in the US? Laws vary by Country and State.

I think, in California, that you are supposed to get a business license and Tax ID if you earn over $600. But I don't think income is taxable until something like $4,600.

It doesn't take much time to set up and most companies expect you to have a Tax ID.

Edit: Don't quote me on those numbers... that's just off the top of my head!
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