Author Topic: Managing the blog as a business  (Read 3160 times)

smartmoneyandtravel

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Managing the blog as a business
« on: January 27, 2018, 09:04:48 AM »
Jeremy,

Some questions on managing a blog

1. How did you go about getting the blog structured as a business? How did you progress, anything you would change to be more efficient if you could redo the process? 

2. How do you manage the income to be tax efficient? (401k? taxes? paying yourself?)

Thanks!

gocurrycracker

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Re: Managing the blog as a business
« Reply #1 on: January 28, 2018, 10:19:26 PM »
It isn't necessary to do anything. Simply by seeking profit through a blog you have a business.

Unless you formally create a business structure (typically an LLC or S-corp) you are self-employed / sole proprietorship.

A business of any structure is inherently tax efficient, as you are only taxed on profit which is equal to income minus expenses. They can all have a 401k.

It is generally not necessary or advantageous to create an LLC unless you need liability protection (e.g. you operate heavy equipment in public areas) or to create an S-corp unless you have high income (much greater than ~$50k/year.) I'm not a corporate attorney, so consult with your own CPA/lawyer.

GCC has always been a sole proprietorship. I may change that in the future to become an overseas corp.

Jim

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Re: Managing the blog as a business
« Reply #2 on: February 27, 2018, 06:19:16 PM »
Jeremy,

This was good information to read.  My recently set up blog is a sole proprietorship business.  I think generally as a society we hear of all of the horror stories and it presents people from doing anything.  It's much easier to set up a hosting and register a domain name than it is to get an LLC, separate bank account, AND get hosting and a domain name.

Curious, for affiliate income, do you have a separate bank account to make tracking easier for tax filing time or does it all flow into your personal account and you track it through Personal Capital/spreadsheet.  I've heard different rules/best practices on affiliate income and was wondering what you guys were doing.

Thanks!
I have a blog as I chronicle my family's journey to FI.

https://jimalism.com

gocurrycracker

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Re: Managing the blog as a business
« Reply #3 on: February 28, 2018, 08:12:37 AM »
Curious, for affiliate income, do you have a separate bank account to make tracking easier for tax filing time

It's best to have a separate business account - I have a business checking and savings at a credit union that is used for all direct deposits, and separate business credit cards for the core purchases.

Jim

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Re: Managing the blog as a business
« Reply #4 on: February 28, 2018, 03:33:17 PM »
Good to know. I'll make sure to set bank accounts up before applying for affiliate programs. Thanks!
I have a blog as I chronicle my family's journey to FI.

https://jimalism.com