One of the biggest and most potentially dangerous misconceptions about Online Marketing is that it is a tax free market. Men and women go into IM convinced that because they are making money online and being paid through, mostly, PayPal–they dont need to pay taxes on that money. This isnt true! Whats more important is that if you dont pay taxes on this money, you may end up in all sorts of trouble! Dont fret, however: doing your taxes as an Internet Marketer doesnt have to be difficult. Here are some things which could help you.

1. Secure an appointment at your local Small Business Association. Just about every community has a Small Business Association (typically working through a community college) that employs specialists on both starting your business and making sure that all of the details (like taxes) are handled. Best of all, this resource is practically always no cost!

2. Record each and every little thing. This is well worth reiterating: keep track of everything. Excel makes this easy. Start a spread sheet of each and every penny you make through your Web Marketing efforts and another that documents every single penny you spend on your Online Marketing efforts. You should keep receipts and invoices for all of the money you spend.

3. If youve got the money to afford it, work with an accountant. By doing this you dont have to worry about the numbers and taxes part of your online business. You tell your accountant what youve made and spent (you should have documentation for proof) and they take over from there.

4. Pay in toward the taxes you will be owing at the end of the year. A good principle is to pay 30% of each and every sale. You can do this every 3 months through Estimated Tax Payments with the IRS or you could even do this month to month. The IRS is established now to receive estimated tax payments without notice or think you ought to be making them. This is going to save you from coughing up a really distressing amount of money all at once which, if you havent been saving up for it, can be incredibly stressful. What is much better is that if you have somehow overpaid through your estimated tax payments, youll receive a repayment just like you would if you were working for a traditional employer. Make sure you consult with someone at the IRS to make sure you get set up correctly.

5. Know about your permitted deductions. When you run your own business at home, there are a number of things, such as the money you pay in for utility payments, that become tax deductible–just like paying for other business related supplies. Your accountant or someone from the IRS can help you determine what all you can take when it is time for you to pay taxes.

It isnt difficult to get intimidated by the idea of paying taxes as a web marketer. Luckily, there are all kinds of resources available to help you stick to the law and still keep yourself from losing your shirt to the IRS!

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