Last week I was lucky enough to finish up my taxes and sent them away to the US Treasury and the Franchise Tax Board of California. Last year was definitely the most I have ever made from affiliate marketing and I wanted to be a good citizen and pay my taxes. Since my total profits came out to be less than $10k, I thought I would pay very little. I mean, Obama is looking out for me, right?
Wrong
Self Employment screwed me. Many people that are making lots of money online incorporate or form an LLC to avoid these high taxes. In the future, if I start to make much more money, I will without a doubt incorporate.
