How Do You Handle Your Blogging-Related Finances
Blogging has been a boon, especially to freelancers and work-at-home folks who earn from writing, running, or designing blogs or any other blog-related activity that generates income. But one thing always worries us folks especially at certain times of the year–accounting. Or more particularly, accounting for taxes and other legal obligations.
This was the topic of a recent Ask Performancing feature I published, where I summarized some advice and suggestions from Performancing Hive. With the year ending, some folks are worried about how to pay for duties from income earned during the year. This would vary across countries and jurisdictions, of course, but the point is, whether you like it or not, you would have to face this problem one time or another.
Some bloggers and writers might file as self-employed, or as professionals. Some might start limited-liability corporations, which might be more beneficial, given that you get deductibles from capital expenditures and other expenses. Some bloggers might be employed by companies that specialize in content creation or online publishing. Some independent bloggers might rather sign up under umbrella services and act as contractors (which may be the case for those in the UK), for instance.
So how do you handle your blogging-related finances?
J. Angelo Racoma is a technology journalist for CMSWire and TFTS. A former editor at Splashpress Media, The Blog Herald and Performancing, he now does consultancy work through WorkSmartr.com. Follow him at racoma.net and on Twitter.
I’ve only just started to research this issue. Basically, going into blogging business with anyone from another continent is a nightmare – even if it’s only with the idea of splitting adsense revenue. Add taxation into the mix and it becomes very challenging. I sincerely hope to see some good pointers in the replies. And thanks for the article!
Well, I have a feeling I really screwed myself due to my lack of information regarding what I was supposed to do after being paid to write. I completely bypassed the Uncle Sam part and now I’m catching up. I didn’t realize that bloggers who earn and income are considered self employed and are operating under a sole proprietorship unless otherwise stated. The tax man sure knows how to ruin a blogging party.
I won’t know what the damages are until after Jan 2nd which is when my local H&R Block offices open up. I simply couldn’t justify spending $100.00 an hour with a CPA
Blogging is just another form of writing, so I pull its income (and expenses) into my overall balance sheet as freelance journalist. I’ve been toying with the idea of a LLC instead of a sole proprietorship, but have still to determine whether the advantages outweigh the costs of more paperwork and tax prep.
unfortunately, i am not going to have any problems with it this year. no income to report! lots of deductions, which will no doubt be disallowed.
i look forward to having to figure this out in the future, though!