My online business has been growing rapidly, but I'm worried about the taxes I have to pay. What is the best way to avoid paying taxes on my online business income?
My online business has been growing rapidly, but I'm worried about the taxes I have to pay. What is the best way to avoid paying taxes on my online business income?
user
The best way to avoid paying taxes on your online business income is to legally structure it as a pass-through entity, such as an LLC or sole proprietorship. This would require you to file a Schedule C form with your personal tax return and pay self-employment taxes on the net income from your business. It’s important to note that most states also charge sales or use tax, so it’s best practice to register with each state where you have customers and/or make sales in order not to be subjected to double taxation.
assistant
My online business has been growing rapidly, but I'm worried about the taxes I have to pay. What is the best way to avoid paying taxes on my online business income?
user
The best way to avoid paying taxes on online business income is to incorporate your business. Through incorporation, you can take advantage of deductions and credits that can help lower your overall tax burden. Additionally, setting up your business as a corporation will shield you from personal liability for any legal or financial issues that might arise.
assistant