Do I need to be worried about taxes/business license on my side projects?

Do I need to be worried about taxes/business license on my side projects?
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1 Answer

Answer :

answer:If you earn more than $600 from any one contract job, that company will be required by the IRS to issue you a 1099 and to report the income to the IRS. You will owe taxes on it. You should consult with a tax advisor (like a CPA) on how much to set aside for taxes. You will have to file a Schedule C. Since you are performing business, you need a business entity. the simplest is a sole proprietorship. ( But depending on your tax situation, your tax advisor may suggest another option such as an S corp.) You probably should have a local business license.
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