2012-05-05, 05:45 PM
I can guarantee you 99% of people don't even setup their forum as a business. 
So most people here probably don't even know of the red tape.
So most people here probably don't even know of the red tape.2012-05-05, 05:58 PM
Seems we already covered this a few posts ago. Edit: Hopefully this thread will help some MyBB members.
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And Tom K., just to be clear, I confirmed that for where I live there is no "just report income to the tax-man" option. For me to start and monetize a forum, I must first establish a home based business with an exemption from a state business license, or 2) establish a business with a state business license.
(2012-05-05, 05:45 PM)Tom K. Wrote: [ -> ]I can guarantee you 99% of people don't even setup their forum as a business.
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(2012-04-22, 08:14 AM)Tom K. Wrote: [ -> ]I would say 99% of people here don't run their forum as a business. Sign up for a business PayPal account, and google Adsense and then iirc PayPal helps you with declaring your earnings for tax purposes. There is no reason to run your forum as a business
(2012-04-27, 09:21 AM)BR549 Wrote: [ -> ]And while I have no reason to doubt your estimate regarding 99% of MyBB members, I do not consider this a sound basis for any MyBB member to use when deciding whether to consider their state and local legal requirements before starting and monetizing a forum.
And Tom K., just to be clear, I confirmed that for where I live there is no "just report income to the tax-man" option. For me to start and monetize a forum, I must first establish a home based business with an exemption from a state business license, or 2) establish a business with a state business license.
2012-05-05, 06:41 PM
Age has nothing to do with it. As I said at the start I would consult a lawyer. Because as you have discovered laws greatly vary from area to area.
If it's something you do in your free time on the side and isn't being run as business all you need to do is report the income as I said at the start.
If it's something you do in your free time on the side and isn't being run as business all you need to do is report the income as I said at the start.
2012-05-05, 07:02 PM
(2012-05-05, 05:36 PM)BR549 Wrote: [ -> ]pavemen,
Good thing I'm not paying you for legal advice. Much of your post does not apply where I live - in a county of a major USA city.
I live in california one of top anti-business states in the union. but if you are going to run it as a business with a DBA and all that, then yes you are going to have to jump through hoops.
2012-05-06, 03:33 AM
What legal red-tape are you referring to?
Likely they won't know anything about a web based business. Your local county clerk can tell you a lot about what you require for a local business but a website is actually more regulated by Federal regulations.
It's tax concerns you need to worry about more than legal ones. And you only really have to worry about taxes if you're actually making money.
And be aware most non-compliance issues result in small fines and requirements to comply. Which means if you make a mistake it's not really going to result in a big problem.
Believe it or not your local bank might have some decent info for you about start a business based account and what they require. With a business bank account you can often have tax services for paying local, state, and federal require taxes through them.
But again if you're just starting off you're really not making money. In which case you can be a sole-proprietor and run it with your SSN instead of an EIN. End of year make sure to properly do your taxes. As long as you're not employing people it's all mostly straight forward.
What state are you in?
Honestly you have should worry about making money more than legal hurdles. It's not a REAL business until you make REAL income. Otherwise it's a hobby. You can worry about regulations once you're a proven business.
I assume you're just making a guess on that. I have started multiple business, been incorporated twice, and done so in 3 different states. You're not required to do very much if anything to make a buck in America.
What are you basing this on?
Yeah..like I said...your taxes but that's at the end of the year and that's federal. Your state and local may require tax too but again...end of the year. And that's IF you actually make money.
I wasn't incorporated until Jan 2011 when I really started to make substantial income and I was getting hurt with the 15% self-employment tax. But to clarify I was incorporated for 6 years with my retail business in NYC a decade ago.
Correct. A DBA is used mainly for invoicing and bank accounts if you're doing biz and accepting payments as another name. Can be helpful with Paypal if you want to accept payments as "Example Forums" instead of John Smith. But again don't bother imho until you have a proven business.
You can fail and then all the efforts to be an official business will not only be pointless but costly.
In America we still have one of the friendliest business environments in the world. We're encouraged to go make money. Just make sure when you do you pay your Uncle Sam.
Bullshit. If you have a home office where people do not come visit you're normally exempt from those type of regulations.
Are you by chance in California? That's an idiot state with regulations up the lime.
You should find out what the fines are for non-compliance. You'd be surprised to find them at $50-$500. And often they are waived if you comply within a certain timeframe.
Of course they're going to say some dumb orange like that.
Ask what happens if you don't. And big question..who's gonna report you? Honestly non-compliance means a fine. And I think you need to ask them to define a business for you. Attempting to earn money does not make you a business.
If you can PM me your state or county. I'd be more than happy to do research because I'm curious what you're fussing about. Oh btw..I have a lawyer and 2 accountants that advise me.
I think most of what you're saying is amusing. You're saying if I start a blog with some adsense income making $50 a month and I take a picture and post it that I'm under a pile of red-tape and I need the fire department to approve my living room where I post from my laptop. Ludicrous.
BTW: I take it all back if you live in Los Angeles or somewhere in California. But almost everywhere else what I said is fine.
EDIT: Check this site out: http://www.municode.com/Library
Quote: I will be contacting local government offices Monday to learn more, and I will follow up in this thread.
Likely they won't know anything about a web based business. Your local county clerk can tell you a lot about what you require for a local business but a website is actually more regulated by Federal regulations.
It's tax concerns you need to worry about more than legal ones. And you only really have to worry about taxes if you're actually making money.
And be aware most non-compliance issues result in small fines and requirements to comply. Which means if you make a mistake it's not really going to result in a big problem.
Believe it or not your local bank might have some decent info for you about start a business based account and what they require. With a business bank account you can often have tax services for paying local, state, and federal require taxes through them.
But again if you're just starting off you're really not making money. In which case you can be a sole-proprietor and run it with your SSN instead of an EIN. End of year make sure to properly do your taxes. As long as you're not employing people it's all mostly straight forward.
What state are you in?
Honestly you have should worry about making money more than legal hurdles. It's not a REAL business until you make REAL income. Otherwise it's a hobby. You can worry about regulations once you're a proven business.
Quote:Of course not all states and local authorities have the same legal requirements regarding a monetized forum (advertisements, donations, subscriptions, etc.). But I'm guessing at least 75% of the USA population is legally required by their state, county, or city to do something before starting and monetizing a forum.
I assume you're just making a guess on that. I have started multiple business, been incorporated twice, and done so in 3 different states. You're not required to do very much if anything to make a buck in America.
Quote:And while I have no reason to doubt your estimate regarding 99% of MyBB members, I do not consider this a sound basis for any MyBB member to use when deciding whether to consider their state and local legal requirements before starting and monetizing a forum.
What are you basing this on?
Quote:This should be nothing new to any USA MyBB member, but here's a quote from the IRS. "All income earned through the taxpayer’s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040."
Yeah..like I said...your taxes but that's at the end of the year and that's federal. Your state and local may require tax too but again...end of the year. And that's IF you actually make money.
I wasn't incorporated until Jan 2011 when I really started to make substantial income and I was getting hurt with the 15% self-employment tax. But to clarify I was incorporated for 6 years with my retail business in NYC a decade ago.
Quote:Since I receive payments directly to me and not through a business name, I dont need a DBA to be filed (I may need a business license, but with no customers, no advertising, no business address, no inventory, no storage here I think I can get away with it).
Correct. A DBA is used mainly for invoicing and bank accounts if you're doing biz and accepting payments as another name. Can be helpful with Paypal if you want to accept payments as "Example Forums" instead of John Smith. But again don't bother imho until you have a proven business.
You can fail and then all the efforts to be an official business will not only be pointless but costly.
In America we still have one of the friendliest business environments in the world. We're encouraged to go make money. Just make sure when you do you pay your Uncle Sam.
Quote:I called the city today and learned I'm instead under the county's jurisdiction (I just moved). So now thinking I might be getting a break, I call the county but then found even more red tape and fees - to include an inspection of my bedroom (where I type) by the fire department. I kid you not. Perhaps the county wants to prevent me from setting the internet on fire as I type in my forum.
Bullshit. If you have a home office where people do not come visit you're normally exempt from those type of regulations.
Are you by chance in California? That's an idiot state with regulations up the lime.
Quote:Before starting and monetizing one forum, my local jurisdiction requires over $200 in fees and red tape that includes an inspection of my bedroom by the fire department - and that's for a home based business, no state business license.
You should find out what the fines are for non-compliance. You'd be surprised to find them at $50-$500. And often they are waived if you comply within a certain timeframe.
Quote:To clarify this with the county official, I asked, without a state business license would I be in violation for going off property, taking a picture, and then posting it to my forum. This official without deviation or hesitation and as if having answered this question hundreds of times before told me this or any business related activity done outside my home office would be in violation. And that to be in compliance and conduct any business related activity outside my "home office", I instead would need a state business license.
Of course they're going to say some dumb orange like that.
Quote:And Tom K., just to be clear, I confirmed that for where I live there is no "just report income to the tax-man" option. For me to start and monetize a forum, I must first establish a home based business with an exemption from a state business license, or 2) establish a business with a state business license.
Ask what happens if you don't. And big question..who's gonna report you? Honestly non-compliance means a fine. And I think you need to ask them to define a business for you. Attempting to earn money does not make you a business.
If you can PM me your state or county. I'd be more than happy to do research because I'm curious what you're fussing about. Oh btw..I have a lawyer and 2 accountants that advise me.
I think most of what you're saying is amusing. You're saying if I start a blog with some adsense income making $50 a month and I take a picture and post it that I'm under a pile of red-tape and I need the fire department to approve my living room where I post from my laptop. Ludicrous.
BTW: I take it all back if you live in Los Angeles or somewhere in California. But almost everywhere else what I said is fine.
EDIT: Check this site out: http://www.municode.com/Library
2012-05-06, 03:44 AM
(2012-05-06, 03:33 AM)labrocca Wrote: [ -> ]Quote:Since I receive payments directly to me and not through a business name, I dont need a DBA to be filed (I may need a business license, but with no customers, no advertising, no business address, no inventory, no storage here I think I can get away with it).
Correct. A DBA is used mainly for invoicing and bank accounts if you're doing biz and accepting payments as another name. Can be helpful with Paypal if you want to accept payments as "Example Forums" instead of John Smith. But again don't bother imho until you have a proven business.
^^ This was actually from me. I was trying to tell him that he does not need any of the stuff he is worrying about
Quote:BTW: I take it all back if you live in Los Angeles or somewhere in California. But almost everywhere else what I said is fine.
I am in CA and its still not as bad as he is making it out to be.
2012-05-06, 04:41 AM
(2012-05-06, 03:44 AM)pavemen Wrote: [ -> ](2012-05-06, 03:33 AM)labrocca Wrote: [ -> ]Quote:Since I receive payments directly to me and not through a business name, I dont need a DBA to be filed (I may need a business license, but with no customers, no advertising, no business address, no inventory, no storage here I think I can get away with it).
Correct. A DBA is used mainly for invoicing and bank accounts if you're doing biz and accepting payments as another name. Can be helpful with Paypal if you want to accept payments as "Example Forums" instead of John Smith. But again don't bother imho until you have a proven business.
^^ This was actually from me. I was trying to tell him that he does not need any of the stuff he is worrying about
Quote:BTW: I take it all back if you live in Los Angeles or somewhere in California. But almost everywhere else what I said is fine.
I am in CA and its still not as bad as he is making it out to be.
Exactly. To me it seems as if he is trying to kill an ant with a machine gun. I've done my fair research and calls, and certainly haven't come across such (in California). In addition, asking about specific applications, forums for example, you'll get a round about answer of complete rubbish. They can barely answer questions about internet businesses let alone understand specific applications and provide a reasonable response (through my experience anyway.)
Anyway, as Labrocca said, treat it as a hobby for now until it actually generates income. There is really no point in enduring expenses that are completely unnecessary (imo). Especially since building a solid active forum takes time.
2012-05-18, 09:04 PM
(2012-05-05, 06:41 PM)Alex Smith Wrote: [ -> ]Age has nothing to do with it. As I said at the start I would consult a lawyer. Because as you have discovered laws greatly vary from area to area.Right, nothing to do with age. That's my signature, not meant to be read as a comment in this thread. But needing to consult a lawyer is part of the problem. As posted earlier, I'm disgusted by all of the "red tape" that's involved simply to start and monetize a forum.
(2012-05-05, 06:41 PM)Alex Smith Wrote: [ -> ]If it's something you do in your free time on the side and isn't being run as business all you need to do is report the income as I said at the start.I addressed and covered this in my earlier posts / comments in this thread. The laws applicable for where I live do not allow what you suggest.
(2012-05-05, 07:02 PM)pavemen Wrote: [ -> ]I live in california one of top anti-business states in the union. but if you are going to run it as a business with a DBA and all that, then yes you are going to have to jump through hoops.That may be the case where you live, and I have no reason to dicuss the specifics of that or any other USA jurisdiction. However, the advice you provide here simply is not applicable to where I live, as my earlier comments / posts attest.
2012-05-18, 09:46 PM
Half an hour on my response and I don't even get acknowledged by OP. Even though I'm probably the most well-versed guy here when it comes to legalities of online business.
I feel like I've been trolled.
I feel like I've been trolled.
2012-05-18, 10:06 PM
(2012-05-18, 09:46 PM)labrocca Wrote: [ -> ]Half an hour on my response and I don't even get acknowledged by OP. Even though I'm probably the most well-versed guy here when it comes to legalities of online business.
I feel like I've been trolled.
Without him posting up where he lives or under what jurisdiction he is under, it seems strange.... This is the first I have ever heard of such regulation.