I have a full time job with a company. On the side, I also do some website development. I only make a couple thousand dollars a year so the accountant who does my taxes has told me to not file as a legal entity. He just groups the income from the side work as extra income. ===>AS EXTRA INCOEM?/ You mean the other income reported on 1040 line 21as a sort of hobby income??? In my opinion, no matter if you incorporate your self employment biz as a corp or a SMLLC, however, as a
A self-employed individual you are required to report all business income and deduct all allowable business expenses on your Sch C of 1040
Also aslongas the amount on SCh C line 29 / 31 is $400 or exceeds $400 then you must file return and also aslognas the amt on SCh SE line 2 / 3 is also $400 or exceeds $400 you must pay self employment tax and deduct 50% of the self employment tax on page one line 27 on 1040. The way the tax laws treat hobbies is quite different from the way businesses are taxed. With hobbies, the general rule is that you can't take any money you spend on your hobby as a deduction. However, if you earn income from your hobby, then you're allowed to deduct hobby expenses up to your hobby income. For instance, if you made $900 from your hobby but spent $1k to generate that income, then you'd be allowed to deduct just $900. Furthermore, the deduction is technically a miscellaneous itemized deduction, so you must itemize to claim it on your SChA of 1040 if not hen no you can not claim the expense on your eturn. But this also means that if your total miscellaneous deductions don't exceed 2% of yourAGI, you may not be eligible at all for a deduction.
I recently developed a website for my home owners association and they want a w-9 from me.=>As they regard you as a self employer, contractor, thwy want W9 from you as you know, A Form W-9 is a document that is issued by the IRS and is used when a person or company needs to request a Taxpayer Identification Number , claims for exemption and specific certifications from a person, company, trust or estate in the U.S
I do not have a Tax ID Number so I can't give them a W-9. I am not going to be able to get a hold of my accountant for over a week because he is away on vacation. =====>You can easily create your own TIN EIN I mean and put it in W9 or you may put your SSN in the form W9.however, to open your biz account you need an EIN; if you want you can easily create your ein https://www.irs.gov/businesses/small...ply-for-an-ein
note; you may form your biz as a sole proprietorship or SMLLC . for more info you need to contact your state secretary of state corp div