MyBB Community Forums

I have yet to start a forum or site. I have domain names and plans to start at least 10, most with intent of generating revenue from advertising, donations, subscriptions, etc.

However after another round of researching today (trying to avoid the cost of an attorney), I discovered an even longer trail of legal considerations than I previously found. Federal, state, county, city, my landlord (I rent) and I'm now thoroughly disgusted by all of this "red tape".

Do any of you webmasters feel the same?

As I understand all of this, each of my forums or sites would be a separate home based business, with me as the sole proprietor. I would not be incorporating.

How much money are you expecting to make? Are you planning on running 10 forums at once? Because that is a recipe for disaster. Make one good quality forum, get it popular and you'll earn more than the 10 combined!

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

Tom K., thanks for jumping in with your insight and advice. So I take it that you (and likely most here) don't feel as I do, that is, thoroughly disgusted by all the "red tape" / legal considerations that seem required before starting a forum.

Addressing your questions...

At first I expect to be in the red... losing money. Then eventually I'd like to make a buck or two. Either way it seems prudent to get the legal considerations handled before starting (and monetizing) a forum or site.

And as you advised, I would want to start and develop one forum at a time. Wouldn't want to spread myself too thin, but also would not want to put all my eggs in one basket. So I'll have to use my business sense and play this by ear - no problem. Most of the sites that I have planned would not have forums, but I would be monetizing them as well.

I've got the money part figured out well enough for now with PayPal, Google, and tax reporting.

But by FAR my biggest hurdle and the reason for this thread is the legal considerations before starting a forum. I will be contacting local government offices Monday to learn more, and I will follow up in this thread.

(2012-04-22, 08:14 AM)Tom K. Wrote: [ -> ]How much money are you expecting to make? Are you planning on running 10 forums at once? Because that is a recipe for disaster. Make one good quality forum, get it popular and you'll earn more than the 10 combined!

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

Where are you based? To my knowledge there are very few legal requirements when starting a forum in both the UK and USA, other than making sure you include any profit from ads or donations into your yearly tax return

Tom K., I'm in the USA (regulation nation). From what I've learned for where I live, there are other significant legal requirements (state, county and city) that I need to take care of before starting and monetizing a forum. For me it's certainly not a simple matter of reporting income in a tax return after earning it.

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.

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.

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."

But here's my question. What about any state and local legal requirements? And it was my answering this question that prompted me to post that I became thoroughly disgusted because I found more red tape.

Call me crazy or just call me, but I'm not one to bank on the "ignorance is bliss" business plan. I did the research, and now I can proceed confidently knowing that I will be within the law and 13.2 miles of red tape.

(2012-04-22, 07:48 PM)Tom K. Wrote: [ -> ]Where are you based? To my knowledge there are very few legal requirements when starting a forum in both the UK and USA, other than making sure you include any profit from ads or donations into your yearly tax return

It depends. Are you going to acting like a business or is this something you're doing on the side? If it's just on the side all you need to do is report your income (like your supposed to with e-bay as well).

If it's a business you'll probably want to seek out a lawyer for help.

I have had no issues in the 6 years I have been reporting income from my site. All compensation is filed as "1099-MISC Box 7 Non-employee compensation" as you are a "contractor" working as a web-publisher. There is a specific business class for web-publisher in the tax forms.

As I do not meet clients, have inventory, etc. I file as sole-proprietor on my main taxes. However, I do file via Schedule C so that I can claim all my expenses such as hosting, domain renewals, cell phone (as main business line and tool for managing email and servers), etc. Those all let me reduce the income from donations, ad income, etc.

So I pay self-employment taxes, business income taxes, etc on the profits I make.

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).

Thanks for the replies.

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.

Anyway, the least expensive and legal way possible for me to start and monetize just one forum would be a home based business (exempt from a state business license) at a cost of over $200 in county fees. And I was hoping to start a few such forums, you know, to see what might take off and be profitable. Unknown at this time if these fees would apply to each forum.

And, before or after starting one forum, I was hoping to start one or more non-home based internet businesses, that I would operate primarily from my keyboard, and that would require a state business license that covered all business activities that I did as a sole proprietor. Each of these businesses would include a website or a website and forum.

An example of such a non-home based business: I have a website or forum with a website that I operate primarily from home; AND I venture outside of my home, take a picture, and post it on my website. With that business related activity (or any) done outside my home, I then am required to forfeit the home based exemption and pay the ~ $200 state business license - in addition to the > $200 county fee - possibly for each website (but unknown at this time).

Concluding here by saying I'm not happy with all of this red tape. And I will follow up as I uncover more details.

Asking again - anyone here feel as I do, disgusted by all the red tape that's required simply to start and monetize a forum?

Anyone?

you must live in illinois, ohio or new jersey.

leaving your home to conduct non-esssential business or occasional business should not forfeit the home office rule. your essential business (primary work, accounting work, most of your time spent) determines the classification in most cases

if you are going to go go through all the hoops they say you need, you should create a LLC and run all your websites under that LLC and accept all your payments to that LLC.

Are you planning on running as a business with a business name (filing a DBA) or just as you directly? The whole DBA thing sets in motion the business rules.

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.

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.

With a state business license, the total fees double to over $400. And then to incorporate (DIY and without the cost of an attorney), the fees jump to around $700. And this is just for starting and monetizing a single forum. The costs go higher with each additional monetized forum or website.

Again, I am disgusted by all of this red tape. And the fees are certainly discouraging me from starting much of what I had planned.

Perhaps some other MyBB member feels as I do?

And to drive home this point, I confirmed with my local authorities that in fact if any business related activity is done outside of my home office (bedroom), I then would be in violation / not in compliance.

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.

Hmmm.... So, what does any of this thread have to do with USA MyBB members?

I suggest checking with your local authorities (city / county) to find out the required legal considerations (red tape and fees) before starting and monetizing any forum or website. Short of this or hiring an attorney, I suggest not taking legal advise over the internet. Edit: And of course don't forget checking with your state.

(2012-05-01, 03:26 AM)pavemen Wrote: [ -> ]you must live in illinois, ohio or new jersey.

leaving your home to conduct non-esssential business or occasional business should not forfeit the home office rule. your essential business (primary work, accounting work, most of your time spent) determines the classification in most cases

if you are going to go go through all the hoops they say you need, you should create a LLC and run all your websites under that LLC and accept all your payments to that LLC.

Are you planning on running as a business with a business name (filing a DBA) or just as you directly? The whole DBA thing sets in motion the business rules.