affiliate website - LLC, corporation or just other income?

[razvan_vlad]

hello guys,

i have some questions about affiliate websites.
I want to build a website so i can advertise products from different merchants so i can get paid with a comission for every customer that my website redirects to marchant website or comission for every transaction made from a customer who visited my website.

i am still unclear with some things:

1) if i have a website and i want to make it affiliate (as described above).. what type of licenses do i need to be LEGAL ? i mean, do i have to have a LLC or Corporation in order to run this website so i can earn my money from the comission? (I would PREFFER NOT to have a LLC or corporation.)

2) if i don't have to have my own LLC or corporation, do i need any other license? if so, what licenses do i need??

3) for example ClickBank asks for an EIN. can i use my SSN to register for affiliate networks? and.. at the end of each month, i will receive a check with my earnings??

4) do i have to pay any taxes by running this website??? (if the company will send me a check with my earnings, will the send me a form at the end of the year with all my anual earnings in order to declare that for anual taxes?)


Please be speciffic. Also please explain clearly what i have to do in order to start running this website and be legal in the same time. i don't want to make a stupid movement.

Thanks alot for your time,
Razvan

[kbldshmn]

You might want to just start out as an individual or a sole proprietor until you learn how to make money from affiliate marketing, then worry about incorporating.

Just a thought.

Renato

[razvan_vlad]

yeah .. so.. that's what im talking about. is it ok.. to start as an individual?? so.. i guess .. yes.. it is ok. but.. do i still have to pay taxes??

[kbldshmn]

I'm not a tax advisor, but I believe that the answer is yes. It is a personal income that should appear in your bottom line. The CJ's and Amazons of the world should be sending you a 1099 if you make any sales.

[razvan_vlad]

cool. .. .. so.. with other words.. .. if i want to start a bussiness like that.... i mean.. just.. making some money from comission of affiliate websites..
i don't have to bother with any forms.. and.. licences.. .. and.. company's name.. i can make it like.. individual.
right?

[kbldshmn]

You'll have to check with the requirements in your state. I happen to have a resellers license in California just in case the authorities ask. But I got it for my eBay biz.

Here's a link on Yahoo Business that may help you out

Hope that helps.

[Linda Buquet]

Yes you can just use your personal name.

Anyone that pays you over 600 a year is supposed to 1099 you.

Even if they pay you less than that you are still supposed to report as income.

Each state and I think even county may have different rules regarding business license. They don't usually cost very much though.