Question about a side business...

**Firebird Phoenix** · 11-24-2008, 07:55 PM

Are there any legal issues with having a side business of teaching another language with the supplementation of a software program to friends, family, and possibly others if it catches on? Since I'm not a teacher or are there any problems actually from using the software to teach and cause I'll be making money by doing so. I was just wondering, how much are you allowed to make a year, "under that table" like this without it being reported for taxes? I faintly remember from my business course in high school it was about $3000 because of people doing under the table jobs like yard work. Sounds weird...but whateva lol. Thanks

**gwballin** · 11-25-2008, 08:21 AM

Originally Posted by Firebird Phoenix

I was just wondering, how much are you allowed to make a year, "under that table" like this without it being reported for taxes?

Zero, zip, nada...

Any and all money paid to you by a customer (student) in exchange for a service (teaching/tutoring) is to be included as income on your tax return.

**Kennedy** · 11-25-2008, 08:32 AM

Originally Posted by Firebird Phoenix

Are there any legal issues with having a side business of teaching another language with the supplementation of a software program to friends, family, and possibly others if it catches on? Since I'm not a teacher or are there any problems actually from using the software to teach and cause I'll be making money by doing so. I was just wondering, how much are you allowed to make a year, "under that table" like this without it being reported for taxes? I faintly remember from my business course in high school it was about $3000 because of people doing under the table jobs like yard work. Sounds weird...but whateva lol. Thanks

If there aren't any records- it didn't happen.

Just sayin'.

**gwballin** · 11-25-2008, 08:35 AM

Originally Posted by Kennedy

If there aren't any records- it didn't happen.

Just sayin'.

Wow, that is very Christian of you… What ever happened to ‘give unto Caesar…’

**Smkn_TA** · 11-25-2008, 08:37 AM

Why would they pay you when Rosetta stone works wonders.

**Kennedy** · 11-25-2008, 08:39 AM

Originally Posted by gwballin

Wow, that is very Christian of you… What ever happened to ‘give unto Caesar…’

The IRS is more like something from the pits, in my book. That's why it is nicknamed, the "Infernal Revenue Service".

Now run along and audit someone, please.

**Spaz** · 11-25-2008, 08:42 AM

Originally Posted by Kennedy

The IRS is more like something from the pits, in my book. That's why it is nicknamed, the "Infernal Revenue Service".

Now run along and audit someone, please.

pick me!!! pick me!!!

**third_shift|studios** · 11-25-2008, 09:37 AM

if you make $600 or more you have to report it.

you can probably utilize any software you'd like as long as you're not distributing it illegally or sharing it.

**tnthub** · 11-25-2008, 10:09 AM

Actually, the book, you are supposed to include all revenue for tax purposes. That said, someone has to pay you $600.00 or maybe $650.00 to issue an I-9form for expenditures.

In other words... If you make a couple of hundred bucks, with zero paper trail, "cash" then probably nobody will ever be the wiser...

If you actually turn your efforts into a business, advertise, put an ad in the paper, and have any sort of regular income because of it, you should track all of it as self employed people do have to file taxes...

If you actually sell the software, you will need a tax ID number (Federal and State), and you will need to pat sales tax on any software sold. You will have to file quarterly or monthly even if you do not make any sales by virtue of having the tax number...

**Smkn_TA** · 11-25-2008, 11:00 AM

Start an english as a second language class. You'de be doing all of us a huge favor!

**Firebird Phoenix** · 11-25-2008, 05:14 PM

Originally Posted by third_shift|studios

if you make $600 or more you have to report it.

Originally Posted by tnthub

Actually, the book, you are supposed to include all revenue for tax purposes. That said, someone has to pay you $600.00 or maybe $650.00 to issue an I-9form for expenditures.

Is that one person or if its smaller amounts from each person as in $600 or more for the year then i'd have to report it?

Short of reading every damn regulation how do you guys find this crap out lol?

Like I said this would be more of a word of mouth thing and I don't for see myself making this into a full blown business where I advertise and such. Thanks guys

**Kennedy** · 11-25-2008, 05:23 PM

Originally Posted by Firebird Phoenix

Is that one person or if its smaller amounts from each person as in $600 or more for the year then i'd have to report it?

Short of reading every damn regulation how do you guys find this crap out lol?

Like I said this would be more of a word of mouth thing and I don't for see myself making this into a full blown business where I advertise and such. Thanks guys

Here man, read this and the links from the page. I will tell you the legal information. You must make the decision just how official you want this business to be, as was said if you're making decent money and have expenses, file straight up, it isn't worth the hassle to cheat on your taxes. OTOH if you're doing this small potatos don't spend 100 hours on tax research to make a few extra dollars on the side...figure out your own cost to benefit ratio

http://www.irs.gov/businesses/small/...115045,00.html