How I Do My Taxes As An Online Business Owner & Content Creator (E-commerce, Dropshipping, etc.)
Published on: December 4 2022 by Baddie In Business
How I Do My Taxes As An Online Business Owner & Content Creator (E-commerce, Dropshipping, etc.)
The above is a brief introduction to How I Do My Taxes As An Online Business Owner & Content Creator (E-commerce, Dropshipping, etc.).
Let's move on to the first section of How I Do My Taxes As An Online Business Owner & Content Creator (E-commerce, Dropshipping, etc.)!
Table of Contents About How I Do My Taxes As An Online Business Owner & Content Creator (E-commerce, Dropshipping, etc.)
How I Do My Taxes As An Online Business Owner & Content Creator (E-commerce, Dropshipping, etc.)
startTime | durationTime | text |
00:00:00 | 00:00:04 | hey buddy and business family my name is |
00:00:01 | 00:00:06 | isabella i am the owner of two six |
00:00:04 | 00:00:07 | figure earning online businesses and |
00:00:06 | 00:00:10 | today i'm gonna be toking about the |
00:00:07 | 00:00:13 | subject that you guys have been dying to |
00:00:10 | 00:00:15 | know about which is how i do my taxes as |
00:00:13 | 00:00:18 | an online business slash |
00:00:15 | 00:00:20 | online if you guys are new to my channel |
00:00:18 | 00:00:22 | you guys know i give you guys so many |
00:00:20 | 00:00:25 | ideas and i even show you guys step by |
00:00:22 | 00:00:27 | step how to start making money online |
00:00:25 | 00:00:31 | but i realized that a lot of you guys |
00:00:27 | 00:00:33 | had so many questions about the tax side |
00:00:31 | 00:00:35 | of making money online i think a huge |
00:00:33 | 00:00:37 | reason of why people don't want to start |
00:00:35 | 00:00:38 | their online business or a huge barrier |
00:00:37 | 00:00:41 | that holds people back from starting |
00:00:38 | 00:00:43 | their business is the subject of taxes |
00:00:41 | 00:00:45 | and people being afraid that once they |
00:00:43 | 00:00:47 | get the money they're not gonna know |
00:00:45 | 00:00:49 | what they have to do next so hopefully |
00:00:47 | 00:00:52 | this video will clear a lot of these |
00:00:49 | 00:00:53 | concerns up for you so you can follow |
00:00:52 | 00:00:55 | your dreams and start that business that |
00:00:53 | 00:00:57 | you've always wanted to start before we |
00:00:55 | 00:00:59 | get into this video make sure you guys |
00:00:57 | 00:01:01 | smash that like button for the youtube |
00:00:59 | 00:01:03 | algorithm and hit that subscribe button |
00:01:01 | 00:01:04 | so i can continue to make videos just |
00:01:03 | 00:01:06 | like this for you guys |
00:01:04 | 00:01:10 | now this video is not meant to be |
00:01:06 | 00:01:12 | instructional as i am not a cpa i am not |
00:01:10 | 00:01:15 | legally allowed to give you any tax |
00:01:12 | 00:01:18 | advice and this video is not advice at |
00:01:15 | 00:01:20 | all although i wanted to share what i |
00:01:18 | 00:01:24 | personally do and that can hopefully |
00:01:20 | 00:01:25 | guide you guys so you will not be afraid |
00:01:24 | 00:01:27 | to start that online business that |
00:01:25 | 00:01:29 | you've always wanted to start or start |
00:01:27 | 00:01:31 | making money online if you are |
00:01:29 | 00:01:33 | unfamiliar with what i do online not |
00:01:31 | 00:01:36 | only do we make money from our videos |
00:01:33 | 00:01:38 | and content creation but we also make |
00:01:36 | 00:01:41 | money from our ecommerce stores so just |
00:01:38 | 00:01:43 | to give you guys a background and basis |
00:01:41 | 00:01:45 | of where i'm coming from i do live in |
00:01:43 | 00:01:47 | the united states i live in florida |
00:01:45 | 00:01:50 | something about florida is that we don't |
00:01:47 | 00:01:52 | pay state tax we only pay federal tax |
00:01:50 | 00:01:54 | state tax can be different depending on |
00:01:52 | 00:01:56 | your state every state is different and |
00:01:54 | 00:01:59 | these are the states that do not make |
00:01:56 | 00:02:02 | you pay state tax so i do save on taxes |
00:01:59 | 00:02:05 | yearly because i only am responsible for |
00:02:02 | 00:02:07 | paying the federal tax now first of all |
00:02:05 | 00:02:10 | let me just say this |
00:02:07 | 00:02:14 | you can make money online without having |
00:02:10 | 00:02:16 | like any sort of license or registration |
00:02:14 | 00:02:18 | or whatever you'd like to call it let's |
00:02:16 | 00:02:20 | just say you just got invited into the |
00:02:18 | 00:02:22 | reals bonus program on facebook and |
00:02:20 | 00:02:24 | before you start accepting payments from |
00:02:22 | 00:02:25 | facebook you have to fill out this type |
00:02:24 | 00:02:26 | of form |
00:02:25 | 00:02:28 | so don't let this kind of thing |
00:02:26 | 00:02:32 | intimidate you whenever you make money |
00:02:28 | 00:02:34 | online 90 of the time they're going to |
00:02:32 | 00:02:36 | have you fill out a form so this is what |
00:02:34 | 00:02:38 | that looks like some social media sites |
00:02:36 | 00:02:39 | will allow you to fill this out |
00:02:38 | 00:02:41 | electronically some will have you |
00:02:39 | 00:02:43 | actually upload this and you can get a |
00:02:41 | 00:02:45 | blank one from the irs website directly |
00:02:43 | 00:02:47 | it's obviously an example but this is |
00:02:45 | 00:02:48 | what i always select when i'm filling |
00:02:47 | 00:02:51 | these out typically what you're going to |
00:02:48 | 00:02:53 | put for this is sole proprietorship this |
00:02:51 | 00:02:55 | is if you were to get paid for your |
00:02:53 | 00:02:58 | videos via facebook or instagram for |
00:02:55 | 00:03:00 | example so as a sole proprietorship and |
00:02:58 | 00:03:02 | when you are a sole proprietorship like |
00:03:00 | 00:03:04 | you don't have to get anything of my |
00:03:02 | 00:03:06 | knowledge you don't have to get anything |
00:03:04 | 00:03:08 | to become a sole proprietorship you are |
00:03:06 | 00:03:11 | a sole proprietorship because the |
00:03:08 | 00:03:13 | definition of sole proprietorship is a |
00:03:11 | 00:03:17 | single person running that business i |
00:03:13 | 00:03:19 | personally did not get my llc until i |
00:03:17 | 00:03:22 | was already making consistent money and |
00:03:19 | 00:03:24 | knew i wanted to keep the business long |
00:03:22 | 00:03:26 | term i didn't want to legalize anything |
00:03:24 | 00:03:28 | just because i wasn't even sure if i was |
00:03:26 | 00:03:30 | even gonna make money in the beginning |
00:03:28 | 00:03:32 | and once you get an llc it is a |
00:03:30 | 00:03:35 | commitment because you do have to pay |
00:03:32 | 00:03:36 | yearly for the llc and there's other |
00:03:35 | 00:03:38 | responsibilities that come along with |
00:03:36 | 00:03:40 | that so that's another thing that for me |
00:03:38 | 00:03:42 | personally if i were to start from |
00:03:40 | 00:03:43 | scratch i would still do that i would |
00:03:42 | 00:03:47 | wait till i start making consistent |
00:03:43 | 00:03:48 | money and then get my llc now obviously |
00:03:47 | 00:03:51 | a sole proprietor means that you would |
00:03:48 | 00:03:54 | be liable this is why an llc is |
00:03:51 | 00:03:57 | important that is why i now have an llc |
00:03:54 | 00:04:00 | because the loc makes your business |
00:03:57 | 00:04:02 | limited to just your business so in the |
00:04:00 | 00:04:04 | case that you would get sued they can't |
00:04:02 | 00:04:06 | come after you or your personal assets |
00:04:04 | 00:04:08 | this is just how i think of it again you |
00:04:06 | 00:04:10 | guys nothing in this video is legal |
00:04:08 | 00:04:12 | advice so take everything that i say |
00:04:10 | 00:04:15 | with a grain of salt i'm just sharing my |
00:04:12 | 00:04:18 | personal view and what i have done so |
00:04:15 | 00:04:19 | even if you do identify as a sole |
00:04:18 | 00:04:22 | proprietor and say you want to start |
00:04:19 | 00:04:24 | your business as a sole proprietor which |
00:04:22 | 00:04:25 | is tiknically allowed like through big |
00:04:24 | 00:04:27 | cartel like for example when you're |
00:04:25 | 00:04:29 | signing up for your payment options |
00:04:27 | 00:04:31 | through big cartel which is paypal and |
00:04:29 | 00:04:32 | stripe big cartel is the free website |
00:04:31 | 00:04:34 | host that i recommend on my channel all |
00:04:32 | 00:04:36 | the time if you want to go and check |
00:04:34 | 00:04:40 | that video out but those payment options |
00:04:36 | 00:04:43 | allow you to use sole proprietorship in |
00:04:40 | 00:04:45 | order to start collecting payments what |
00:04:43 | 00:04:48 | that means is at the end of the year you |
00:04:45 | 00:04:50 | are going to receive 1099 forms and this |
00:04:48 | 00:04:53 | is for any money that you make online |
00:04:50 | 00:04:56 | 10.99 forms is pretty much what i have |
00:04:53 | 00:04:58 | always received from my payment |
00:04:56 | 00:05:00 | processors that i use for example |
00:04:58 | 00:05:02 | facebook pays us for reals they send us |
00:05:00 | 00:05:05 | a 1099 form at the end of the year so |
00:05:02 | 00:05:07 | the 1099 form shows the money that we |
00:05:05 | 00:05:09 | have made in total but this is the |
00:05:07 | 00:05:11 | beautiful thing about being a business |
00:05:09 | 00:05:13 | owner or functioning as a sole |
00:05:11 | 00:05:16 | proprietorship is that you can do |
00:05:13 | 00:05:18 | write-offs so even though |
00:05:16 | 00:05:20 | they are sending you a 1099 form showing |
00:05:18 | 00:05:23 | you how much you made in total you're |
00:05:20 | 00:05:25 | gonna take that 1099 form you can upload |
00:05:23 | 00:05:26 | it i've used turbotax in the in the past |
00:05:25 | 00:05:29 | and like other websites like that |
00:05:26 | 00:05:31 | they've helped me um like basically just |
00:05:29 | 00:05:33 | walk you through doing taxes if you're |
00:05:31 | 00:05:34 | making like a smaller amount and you're |
00:05:33 | 00:05:36 | not using an accountant yet i've used |
00:05:34 | 00:05:37 | those systems and they worked pretty |
00:05:36 | 00:05:40 | well for me |
00:05:37 | 00:05:41 | those systems will walk you through your |
00:05:40 | 00:05:43 | write-offs and like if you work for an |
00:05:41 | 00:05:46 | accountant for example |
00:05:43 | 00:05:48 | that accountant is gonna also give you a |
00:05:46 | 00:05:50 | worksheet stating all of the things that |
00:05:48 | 00:05:52 | you can write off now this is another |
00:05:50 | 00:05:54 | reason why it's really important to keep |
00:05:52 | 00:05:55 | everything on a credit card or debit |
00:05:54 | 00:05:58 | card somewhere recorded like never buy |
00:05:55 | 00:05:59 | stuff in cash or through paypal account |
00:05:58 | 00:06:01 | because you want to make sure you're |
00:05:59 | 00:06:03 | recording everything that you're |
00:06:01 | 00:06:05 | spending money on just so you're able to |
00:06:03 | 00:06:08 | track that in order to do these |
00:06:05 | 00:06:11 | write-offs there are so many pages of |
00:06:08 | 00:06:14 | the irs tax code and that is why it's so |
00:06:11 | 00:06:16 | important to hire a cpa |
00:06:14 | 00:06:19 | accountant that knows online business to |
00:06:16 | 00:06:21 | do your taxes i personally did not hire |
00:06:19 | 00:06:23 | an accountant until i was already making |
00:06:21 | 00:06:25 | over a hundred thousand dollars online |
00:06:23 | 00:06:28 | to ensure that i was doing my taxes |
00:06:25 | 00:06:30 | correctly i personally did not know |
00:06:28 | 00:06:32 | anybody in my circle that had an online |
00:06:30 | 00:06:34 | business and i basically just googled |
00:06:32 | 00:06:36 | accountants in my area so that's highly |
00:06:34 | 00:06:38 | what i would recommend for you too |
00:06:36 | 00:06:40 | um because every state is different |
00:06:38 | 00:06:42 | every country is different so just |
00:06:40 | 00:06:43 | google accountants near me and i |
00:06:42 | 00:06:45 | guarantee you |
00:06:43 | 00:06:46 | one will come up that it is an |
00:06:45 | 00:06:48 | accountant that is experienced in |
00:06:46 | 00:06:51 | business because there's actually a lot |
00:06:48 | 00:06:53 | of accountants that they are not |
00:06:51 | 00:06:56 | actually cpas so they don't really have |
00:06:53 | 00:06:57 | experience with businesses so that's |
00:06:56 | 00:06:58 | just one thing to keep in mind i'm going |
00:06:57 | 00:07:00 | to share something with you guys that |
00:06:58 | 00:07:02 | this is probably the reason why i'm |
00:07:00 | 00:07:04 | committed to being an online business |
00:07:02 | 00:07:08 | owner for the rest of my life and being |
00:07:04 | 00:07:09 | my own boss for this reason alone say |
00:07:08 | 00:07:11 | you become a doctor |
00:07:09 | 00:07:15 | and you're working for a hospital |
00:07:11 | 00:07:16 | say you make 300 000 a year so we have a |
00:07:15 | 00:07:18 | doctor that made three hundred thousand |
00:07:16 | 00:07:20 | a year and then we have a business owner |
00:07:18 | 00:07:22 | that made three hundred thousand a year |
00:07:20 | 00:07:25 | so that doctor because they're employed |
00:07:22 | 00:07:27 | and working for a hospital they have to |
00:07:25 | 00:07:30 | pay a hundred thousand dollars in taxes |
00:07:27 | 00:07:32 | because their tax bracket was in the tax |
00:07:30 | 00:07:34 | bracket to where they have to pay a |
00:07:32 | 00:07:36 | certain percentage for the money that |
00:07:34 | 00:07:38 | they made they cannot dispute that they |
00:07:36 | 00:07:40 | cannot do write-offs because they're an |
00:07:38 | 00:07:42 | employee even though they're a doctor if |
00:07:40 | 00:07:44 | they don't have their own practike if |
00:07:42 | 00:07:46 | they're under somebody else they cannot |
00:07:44 | 00:07:47 | do write-offs on the other hand a |
00:07:46 | 00:07:49 | business owner can do multiple |
00:07:47 | 00:07:52 | write-offs so say that business owner on |
00:07:49 | 00:07:55 | paper it shows 300 000 but they're able |
00:07:52 | 00:07:57 | to do write-offs to reduce their income |
00:07:55 | 00:08:00 | so they pay taxes on whatever their |
00:07:57 | 00:08:02 | actual income was for the year and the |
00:08:00 | 00:08:05 | amount of things that you can write off |
00:08:02 | 00:08:07 | your taxes is actually insane let's go |
00:08:05 | 00:08:10 | through a bunch right now so here are |
00:08:07 | 00:08:12 | examples of tax write-offs so whatever |
00:08:10 | 00:08:14 | pertains to your business |
00:08:12 | 00:08:17 | is what you were able to write off for |
00:08:14 | 00:08:19 | example for the business meals section |
00:08:17 | 00:08:21 | as long as you are going out to eat and |
00:08:19 | 00:08:23 | you're having business meetings or |
00:08:21 | 00:08:26 | you're going out to eat and toking |
00:08:23 | 00:08:28 | about your business this can be a huge |
00:08:26 | 00:08:29 | write-off off your taxes throughout the |
00:08:28 | 00:08:31 | year |
00:08:29 | 00:08:33 | and for this section the travel expenses |
00:08:31 | 00:08:36 | i am able to write traveling off my |
00:08:33 | 00:08:38 | taxes because whenever i travel that is |
00:08:36 | 00:08:41 | able to improve my content which then |
00:08:38 | 00:08:44 | improves my business so this is able to |
00:08:41 | 00:08:47 | be another write-off so let's tok about |
00:08:44 | 00:08:50 | tax brackets this is how i learned and |
00:08:47 | 00:08:53 | understood how taxes work and how you |
00:08:50 | 00:08:55 | pay taxes this graph is what made me |
00:08:53 | 00:08:58 | finally understand the percentage of how |
00:08:55 | 00:09:00 | much i have to pay in taxes so for an |
00:08:58 | 00:09:03 | example if you are single and you made |
00:09:00 | 00:09:07 | two hundred thousand dollars in one year |
00:09:03 | 00:09:10 | you would owe 32 percent in taxes the |
00:09:07 | 00:09:13 | key word here is how much money you made |
00:09:10 | 00:09:16 | also known as your net income not your |
00:09:13 | 00:09:18 | gross income your gross income is what's |
00:09:16 | 00:09:20 | on those 1099 forms that they send you |
00:09:18 | 00:09:24 | your net income is the income that you |
00:09:20 | 00:09:27 | made after you do your write-offs so the |
00:09:24 | 00:09:30 | lower your net income is the lower |
00:09:27 | 00:09:32 | percentage of tax bracket that you're |
00:09:30 | 00:09:34 | going to get into so that's always the |
00:09:32 | 00:09:37 | goal when i do my taxes is to get in a |
00:09:34 | 00:09:40 | lower tax bracket to prevent me from |
00:09:37 | 00:09:42 | having to come out of pocket with paying |
00:09:40 | 00:09:44 | more in taxes |
00:09:42 | 00:09:46 | again if you are letting the thought of |
00:09:44 | 00:09:48 | taxes scare you away from starting a |
00:09:46 | 00:09:49 | business if you don't make money you're |
00:09:48 | 00:09:52 | not going to have to pay any taxes |
00:09:49 | 00:09:53 | anyways so start making the money first |
00:09:52 | 00:09:56 | that's the biggest challenge is making |
00:09:53 | 00:09:57 | the money once you have you know watched |
00:09:56 | 00:10:00 | my youtube videos tried it yourself and |
00:09:57 | 00:10:01 | started making money that's when you can |
00:10:00 | 00:10:03 | start thinking about how you're going to |
00:10:01 | 00:10:05 | manage that money and build your |
00:10:03 | 00:10:07 | foundation |
00:10:05 | 00:10:08 | to pay your taxes properly and things |
00:10:07 | 00:10:11 | like that |
00:10:08 | 00:10:14 | as an online business owner creator you |
00:10:11 | 00:10:16 | just have so many benefits to so many |
00:10:14 | 00:10:19 | things that as an employee you will |
00:10:16 | 00:10:21 | never have i think a big reason of this |
00:10:19 | 00:10:24 | because the wealthy people want to stay |
00:10:21 | 00:10:26 | wealthy so a lot of these rules i feel |
00:10:24 | 00:10:27 | like are created to keep those people |
00:10:26 | 00:10:30 | wealthy so we have to work smart and |
00:10:27 | 00:10:33 | hard to beat in that one percent and to |
00:10:30 | 00:10:34 | be able to think like the wealthy people |
00:10:33 | 00:10:37 | of this world |
00:10:34 | 00:10:39 | the biggest takeaway here is just get |
00:10:37 | 00:10:41 | started you're not gonna pay any taxes |
00:10:39 | 00:10:43 | if you don't make any money so really |
00:10:41 | 00:10:45 | you're only hurting yourself by not |
00:10:43 | 00:10:47 | actually getting started but i |
00:10:45 | 00:10:50 | definitely feel like i paid more taxes |
00:10:47 | 00:10:52 | as an employee than i ever did as a |
00:10:50 | 00:10:54 | business owner only because as an |
00:10:52 | 00:10:56 | employee you cannot dispute how much you |
00:10:54 | 00:10:58 | make and in a lot of situations people |
00:10:56 | 00:11:00 | that are climbing the corporate ladder |
00:10:58 | 00:11:02 | certain people in the corporate world |
00:11:00 | 00:11:04 | cannot get a raise because if they get a |
00:11:02 | 00:11:06 | raise they'll have to pay more in taxes |
00:11:04 | 00:11:08 | which really just decreases their actual |
00:11:06 | 00:11:10 | income and as a business owner we are |
00:11:08 | 00:11:12 | able to reduce our taxable income with |
00:11:10 | 00:11:14 | certain write-offs that we do throughout |
00:11:12 | 00:11:16 | the year that's why i feel like being an |
00:11:14 | 00:11:19 | online business owner creator is like a |
00:11:16 | 00:11:20 | huge life hack another thing that |
00:11:19 | 00:11:22 | actually scared me when i first started |
00:11:20 | 00:11:24 | was someone said that you have to pay |
00:11:22 | 00:11:26 | taxes quarterly i actually asked my |
00:11:24 | 00:11:29 | accountant about this and my accountant |
00:11:26 | 00:11:32 | told me that i am allowed to pay once a |
00:11:29 | 00:11:34 | year so i personally keep money aside i |
00:11:32 | 00:11:36 | always keep a certain amount of money |
00:11:34 | 00:11:38 | reserved for taxes |
00:11:36 | 00:11:39 | so i know that whatever tax bill i have |
00:11:38 | 00:11:41 | coming at the end of the year i can |
00:11:39 | 00:11:42 | already guestimate what that tax bill |
00:11:41 | 00:11:44 | will be |
00:11:42 | 00:11:46 | but if you want to pay quarterly and |
00:11:44 | 00:11:48 | that would work better for you just |
00:11:46 | 00:11:51 | consult with an accountant at that point |
00:11:48 | 00:11:52 | and they can help you with that further |
00:11:51 | 00:11:54 | but i personally did not use an |
00:11:52 | 00:11:56 | accountant until i was already making |
00:11:54 | 00:11:58 | over a hundred thousand dollars a year |
00:11:56 | 00:12:00 | from my online hustles |
00:11:58 | 00:12:02 | thank you guys so much for watching and |
00:12:00 | 00:12:04 | i hope this video helped you understand |
00:12:02 | 00:12:06 | online business and creator taxes of |
00:12:04 | 00:12:08 | course if you guys have any questions |
00:12:06 | 00:12:10 | comment down below we can probably help |
00:12:08 | 00:12:11 | all of each other out because i |
00:12:10 | 00:12:12 | guarantee you if you have a question |
00:12:11 | 00:12:14 | someone probably has the same question |
00:12:12 | 00:12:17 | and i'll try to respond to all of the |
00:12:14 | 00:12:18 | comments and questions down below i wish |
00:12:17 | 00:12:20 | you guys all the best with your online |
00:12:18 | 00:12:22 | business ventures and i will see you |
00:12:20 | 00:12:25 | guys in my next youtube video bye |
00:12:22 | 00:12:25 | everyone |
00:12:39 | 00:12:41 | you |
Congratulation! You have finally finished reading How I Do My Taxes As An Online Business Owner & Content Creator (E-commerce, Dropshipping, etc.) and l believe you have enough understanding How I Do My Taxes As An Online Business Owner & Content Creator (E-commerce, Dropshipping, etc.).
Come on and read the rest of the article!
Recommended
- The Mindset That CHANGED My Life | How I went from BROKE to Making $700K+/Year
- How I Built a Successful Dropshipping Business at 17 Years Old | STEP BY STEP with $0 | MY STORY
- This ONE Side Hustle Makes $500+/night while SLEEPING! (HOW TO START NOW)
- CHICAGO FOR THE DAY!
- How I Make My Money (17 Year Old Entrepreneur)