The myth that Web Marketing is a tax free industry is basically the worst and most dangerous misconception in the market. People enter it believing that since the money they earn comes to them mostly through online sources like PayPal that they dont have to pay taxes on the things that theyve generated. This is simply not true! Whats more important is that if you dont pay taxes on this money, you could wind up in all sorts of trouble! Theres no need to freak out, though: Web Marketing taxes dont need to be stressful. Heres a few ideas that will help you.

1. Set up a visit with the local Small Business Association. Each community has a Small Business Association (generally working through a community college) that has specialists on both starting your business and making sure that all of the details (like taxes) are handled. Whats particularly wonderful is that this source of information is just about always free of charge.

2. Keep track of everything. Let me repeat that as its important: monitor each detail. This is certainly easy enough to do through Excel. You just need one spreadsheet that will monitor all of the money you generate (down to the penny) and another that will keep track of all of the money you spend (yet again, down to the penny). Keep all of the statements and receipts that document these purchases.

3. In case you have sufficient funding, hire a professional accountant. In this way you dont have to worry about the numbers and taxes part of your business. You tell your accountant what youve generated and put in (be sure to have documentation for proof) and they take over from there.

4. Pay in toward the taxes you will end up owing at the end of the year. 30% of every sale is the basic rule youll want to follow. This can be accomplished every three months or even each month by making Estimated Tax Payments to the IRS. The IRS is set up now to receive estimated tax payments whenever you want or think you should be making them. This will keep you from having to pay a gut wrenching amount at the end of the year (which, if you havent saved up for it, can be particularly stressful). What is even better is that if you have somehow overpaid through your estimated tax payments, you will get a reimbursement just like you would if you were working for a traditional employer. Its important to talk to someone at the IRS so that you can get this set up properly.

5. Find out about your allowed write-offs. If youd like to run your own business at home, a lot of things such as the payments you make for your utilities become tax deductible just like the money you are going to pay for supplies or business equipment. Your accountant or someone from the IRS can help you figure out what all you can deduct when it is time for you to pay taxes.

It is easy to get intimidated by the idea of paying taxes as a web marketer. The good thing is that there are a lot of resources to help you make sure you observe the law and keep a healthy share of the profit you make!

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