when do you go from making a bit of cash, to paying tax on your earnings?

**strungoutyeh** · 01-16-2008, 04:30 PM

you start off making a couple websites for people, maybe getting $100 here and there, not much. Then you increase your client list and have a steady flow of money from these websites.

Where is the point where you think, im making some good money i should be paying tax on this? and do you have to register yourself as a business or self-employed or what?

im unsure how to approach this

**justaleaf** · 01-17-2008, 01:40 AM

Are you in the US? Laws vary by Country and State.

I think, in California, that you are supposed to get a business license and Tax ID if you earn over $600. But I don't think income is taxable until something like $4,600.

It doesn't take much time to set up and most companies expect you to have a Tax ID.

Edit: Don't quote me on those numbers... that's just off the top of my head!