Hi
I am thinking about applying for adsense account my website has high pr ranking and i get heavy traffic everyday. since i havent setup a company or llc i would have to provide google my social secruitity # my question is would this count towards my income???? would i have any trouble filling out tax form for this?? ofcourse i spend money in hosting domain name script purchase 1hr of my time to maintain etc.
or would it good for me to setup a llc or inc and than apply for good adsense

Yes it counts as income.

I made thousands of dollars from adsense last year and even thogh I live in Canada and did not have to Provide Google with a social secruitity #, I still claimed everything as income.

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Yes, it counts as income. You will probably need to fill out a Schedule C - Profit or Loss From Business (Sole Proprietorship) once a year, and if you have a lot of Adsense income, file quarterly tax payments. There may also be some state forms you need file.

I would not recommend incorporating (LLC or INC), as the amount of required paperwork is much MUCH greater. You'd be a Subchapter S Corporation and be required to file a separate corporate tax return (federal and state), plus quarterly tax forms (federal and state) whether you received any money or not. The only reason to incorporate is if there is a reason you need to protect your personal assets from liabilies resulting from your business activities.

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Labeler2003
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Did someone mention Schedule C?

Yes, it is income, but you can also deduct the appropriate expenses. You do not need to Incorporate or form an LLC in order to run a business. All you need to do is keep separate records of your income and expenses, and preferably a separate bank account (although not absolutely necessary). All you have to do is regularly solicit business and do some work for it and show that your Income is greater than your expenses (over time). So you can run a business by writing a blog.

Congratulations to a successful website!

K<o>

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United Kingdom answer...

Yes and tell the Tax People.

Make deductions, tax rebates for; Hosting, Cable use, ISP, Hardware, software, paper, ink etc. costs may be able to be made. Also if done from home part of the Electric use and parts of some other charges.

To the TAX people: Money is money, (even if given in Kind, e.g. "Here a pint of beer for that floppy disk", etc)

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As all others have said Adsense income is counted as personal income if your "legal" business identity is listed on your tax forms as a sole proprietorship.
Google does require your SS# or tax id number (if your business is an LLC or a corporation)It's pretty painless to fill out the little form they have after you are accepted as a publisher and they are terrific about keeping click records and reports on the Adsense site...and about sending your check out on time. (-:

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Sure it is taxable income, but you can then subtract all the costs of your website from the income (on schedule C in the USA). TaxCut software makes this easy. AND it is cash in your pocket, so why not?

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Yes it is income and needs to be declared. I personally have reported it as income and have taken out expenses for hosting, DSL connection and other related expenses. but then again i am incorporated as a S chapter company.

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In the USA.. you just use a 1099 form to report additional income. Less your overhead.

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