These days everybody is looking for a side hustle to make passive income. One of the best ways to do this is to start a blog and make money with affiliate marketing. The idea is that you create a website based on a certain product or activity and write informational articles that people are searching for.
Then, you add some links for products that, when people purchase, will pay you out a commission. Banner ads also work well and can make a lot of money, as do sponsored posts. The best part is these sites can be built in your spare time with very little money paid upfront.
Nice, you’re making money; however, it passes from a side hustle to an actual business. So you have to keep track of your money, and you may need an actual accountant. In this article, we will go over several things to keep in mind regarding whether or not you need an accountant as a blogger.
DIY vs Accountant
There’s nobody to say that you can’t take care of your own books when it comes to your blogging income. However, there are many different ways to get paid from blogging, and it takes a pro to know how to categorize everything. This is so that you don’t overpay or underpay your taxes and don’t risk a penalty.
As a blogger, you will often be given free things like products or services, and these need to be accounted for as they are things of value, and taxes will need to be paid on them.
An accountant that understands online income is the best person for the job. You can find an accountant that can help you by going on Vetted Accountants, and they will find one for your needs.
Making a Profit
Another reason to have an accountant is to have somebody that can make sure that you are covered in the beginning years of blogging when you may not be making a profit. They understand the deductions that you qualify for and can help keep your taxes to a minimum.
If your expenses are more than your income, you definitely want this to be sent correctly to the IRS. The obvious expenses are things like your hosting and domain registration fee. But, you could also have people working on your site doing things like writing or coding, and those will need to be deducted correctly. You could also have equipment like a camera or the products you buy to review.
Be a Business
Treating your blog as a business is one thing, but you should also create a business entity for it, so it is protected, as are you. There are many different structures you can do, like an LLC or sole proprietorship so pick one that suits your needs best. You can always change later. Then, it makes sense to open up a business bank account and an EIN from the IRS, so you aren’t using your social security number.