In the everchanging world of marketing and advertising, social media and grassroots campaigns have rapidly taken over a larger share of the marketing and advertising budgets of companies both big and small. With this digital medium movement to reach potential customers come great new opportunities for individuals to tap into their entrepreneurial spirit and start a business that offers the perks of setting one’s own hours, working from home and incorporating one’s own interests, whether it be family, fashion, traveling or other, into their day job.
With the success of a new business come key questions about taxes. In speaking with a network of bloggers, we have identified the following seven common tax questions and provide insight below on how to approach answering these questions when preparing your tax return:
1. Should my blogging business be incorporated as a single‐member LLC or other business entity?
a. This decision won’t have an impact from a tax perspective, as the income of your business will be reported on your personal tax return regardless of whether you are formally incorporated as a single member LLC or whether the business is treated as an un‐incorporated sole‐proprietorship. However, this decision can have a legal impact on you and your business, and we would recommend obtaining the recommendation of an attorney on whether it would be legally beneficial to incorporate your business.
For more information regarding how to address the unique tax questions facing your blogging business this tax season and to discuss developing a tax plan for your growing business in 2018 and beyond, please contact our tax professionals by calling 770.396.2200