Hey all, I know its been a while since I've posted. But I need some advice. I have had an internet business for years. It started out as a basic website design business, then it evolved to add PC repair and custom built PC's. Then about 6 months ago, I started affiliate marketing. Well, I'm not wealthy enough to retire yet, but my income has jumped from 30K last year to about 70 to 90K this year. My affiliates have been depositing my commissions into a WAMU account, I have been keeping 30% in the account, and depositing the rest into my local checking. I just did my taxes on friday, and was taxed well above the expected 30%. Would I be better off incorporating? and if so, should I choose a state like Nevada or Illinois? on a side note, the only documentation I had were my deposits, so i was catagorized as self employed. is this why i was taxed so heavily? sorry if this is a redundant question, tax and accounting are not my forte. now that im making more, id like to keep more...lol
thanks for your help.
