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New online entrepreneur seeking advice.

Discussion in 'Starting a Business, Incorporation' started by Terry Thompkins, Nov 20, 2019.

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  1. Terry Thompkins

    Terry Thompkins Law Topic Starter New Member

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    Hi, i am starting a new online business where i will facilitate the trading of domain names for other domain names for a small fee. As domains are not taxed, will i have to pay any taxes for operating this business. I also would like to know if i need a business license for this type of business as im not selling anything, just providing a service. I really appreciate any advice you all could give.

    Thank you
     
  2. justblue

    justblue Well-Known Member

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    Yes, you are selling something. Your services.
     
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  3. Zigner

    Zigner Well-Known Member

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    And, yes, you have to pay appropriate taxes, etc., on your income.
     
  4. adjusterjack

    adjusterjack Super Moderator

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    Your fees are income. You will pay federal and state income taxes and federal self employment tax. Start with the IRS website and download Schedules C and SE to get an idea how that works. I'm sure that KY has a state income tax website that would be equally helpful.

    You may even have to collect and remit state and local sales tax. There are tax agencies that can show you how to do that if applicable.

    You are likely to have to register your business with the state. The Secretary of State's office can give you some guidance.

    You will need appropriate professional liability insurance. Trading domain names may appear innocuous but your mistakes can potentially cause somebody to lose a great deal of money for which they will undoubtedly sue you.

    There's a lot more to running a business than waking up one morning, going online and raking in money.
     
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  5. army judge

    army judge Super Moderator

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    That is an excellent question you should pose to YOUR CPA, for a small fee, I'm almost sure.
     
  6. justblue

    justblue Well-Known Member

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    "Almost"?? ;)
     
  7. army judge

    army judge Super Moderator

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    Almost "small", but it could be "LARGE"! :D
     
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  8. justblue

    justblue Well-Known Member

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    That's what I thought you meant....
     
  9. adjusterjack

    adjusterjack Super Moderator

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    I missed the boat. I gave the advice for free. Dang it.
     

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