If i run an adult website, do i pay taxes ?

Question

If i run an adult website were consumers buy webcam shows from independent persons listed on my site but i handle the billing process thorugh my website, am i subject to pay taxes, state and federal ? im not sure of if there are such laws in place for things like this. and if so, would it be considered sales tax ?

also, how would i pay the taxes ? keep a record and cut a % for taxes from each transaction or just estimate what my business has made by the end of the year ?

Answer 1

Of course you do! There most certainly IS a law that applies to this: Title 26 of the US Code. All income from whatever source is fully taxable unless specifically excluded by law.

Whether or not it is subject to sales tax is up to your state. Contact the state tax authorities on that issue.

You figure your tax liability by keeping accurate records of all income and expenses, as is required by law.

Answer 2

Hey John, Don't worry! All is not lost. My comments will vary depending on your responses. Do you have a company structure setup of with the state government and a federal Employee Identification Number (EIN)? Example: LLC or LC If answer is YES, then: 1) Hire an accountant 2) Work with accountant to create back tax records, including expenses from 2004 to present 3) Consult a Tax Attorney to layout any possible legal problems that may arise when you submit to the IRS. Your accountant should be able to recommend one If answer is NO, then: 1) Hire an accountant 2) Create a back tax record for yourself from 2004 to present 3) Consult a Tax Attorney to layout any possible legal problems that may arise when you submit to the IRS. Your accountant should be able to recommend one 4) Form a LLC 5) Grow your business! 6) Have long life :) HOWEVER, if you do not pay those taxes or step up a payment plan. Penalties and Interest will be assessed and will increase the amount of tax due. The IRS will file a substitute return for you. But this return is based only on information the IRS has from other sources. Thus, if the IRS prepares this substitute return, it will not include any additional exemptions or expenses you may be entitled to and may overstate your real tax liability. Once the tax is assessed the IRS will start the collection process, which can include placing a levy on wages or bank accounts or filing a federal tax lien against your property. Even if the IRS has already filed a substitute return, it still makes sense for you to file your own return to make sure you take advantage of all the exemptions, credits, and deductions you are allowed. The IRS will generally adjust your account to reflect the correct figures.

Answer 3

I don't know what kind of taxes you pay, but you do have to pay them. Plus I am pretty sure you have to follow a certain law so that you can run the site legally.... argh I wish I could remember the article I read on this... sorry man.

Answer 4

Yes, if you made a profit. Either way, you are required to report the profit or loss to the IRS. If the business is a sole proprietorship, the activity from this business would be included in your individual tax return on schedule C. Otherwise, it would need to be filed on one of the business returns, based on whatever type of legal entity it is.

Answer 5

I owned an adult web site there are lots of problems with having one.
But you want to know about taxs. You have to pay taxs on all money you make on them. both state fed.
You could not pay but i dont think you want to goto jail just to run a porn site.

Answer 6

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Answer 7

You have to keep track of exactly how much your profit was. You are not allowed to just estimate.

Answer 8

If you are earning income YOU NEED TO PAY TAXES.

Answer 9

Tax free is just.