When I filled out my tax info for the affiliate programs I just check the individual/sole proprietor box.

I am not a tax professional, but here is my take. To file as a business you would need an EIN which is a Social Security Number for a business, if you don't have one of those then you should add it to your individual income tax.

It took me forever to realize that you can use your SS # as an EIN number. But is there a time when you have to have a EIN number and cannot use just your SS # or is it only if you don't have a SS#? I hope that the question makes sense.

It's all about how your business is structured. If you file as a sole proprietorship, which is how you are operating currently, then you just use your SSN and report it on your tax return. If, however, you want to incoporate or be an LLC, you'll have to register these businesses and obtain an EIN specifically for the business.

For specific tax advice on how to file this please consult a tax advisor.

As Minion says, consult your tax adviser.

Think of an incorporated business (c-corp, s-corp, LLC) as an individual entity, just like yourself. It can buy and sell property, take out loans, pay taxes (differently for each type), and do pretty much anything the law allows you to do. For all of that, the government wants to know who is responsible, therefore it must have an identity...EIN...employer identification number.

This "NEW" identity is what can give you protection from lawsuit and collections, if handled and used correctly. It can also give you an additional layer of "expenses" -for tax purposes, when it comes to running your business.

The designation of sole proprietor is fine for many businesses. The important thing is to keep good records of income and expense. It is best to have a separate account 1) for business money coming and going and 2) your personal household account. This will be especially appreciated by all if you should ever have an audit. From this account you can easily show expenses for your business (which you can write off against earnings) separate from household expenses (which you cannot). You can also carry a balance for working capital, and so on. From the business account, you pay yourself a wage or return on investment, and deposit it into your personal account.

Most important though is how you report the dollars you earn. Return on investment (capital gains) is treated very differently from ordinary income where you have FICA and Medicaid (15.3%) to pay. You may also have rental income paid to yourself for equipment, office space, etc.

If you have a business of your own, a tax professional will not cost, it will save you money.

Thank you so much for the clairfication. I just wasn't to sure on the difference. Now it make somewhat more sense to me. Thanks again.

Brandon .. I didn't read all the way down this board but I have found the best way to do this as I am also doing a small amount of affiliate cash ...

If you have less than $2K per year put it in other income, if you are making more than $2001 per year, get an INC, like an S-Corp should do you .. its $200 and less than that to renew. You dont need to start a business just need a corp to protect your assets.

If you aren't willing to read the posts, what are you doing here? And how did you come up with $2000 to be a max "other income" amount? Is that an IRS thing? Do you have the code for us? Is that something your accountant has told you?

Also, where did you come up with $200 to get an S-corp? As far as I know, every state has their own fee structure for incorporating. Is this amount what you paid an attorney to set it up for you? Maybe you have more information about that? I know some people like to use Nevada Corporations, or Delaware Corporations because of fewer tax implications.

Wow,somebody does not like Sundays.

But yea,the best advice for my question in the first place is to just go consult with an attorney.