Getting Started

First, you will need to register your business name with city government. When I registered my business name with city I was charged $11 -- so expect to pay a small fee when filing this legal document with your local goverment.

Second, you need to apply for an Employer Identification Number with Department of Treasury (IRS). To file for an EIN, you will need to complete Form SS-4. You can find these forms in post offices, public libraries, online, or by contacting IRS.

Once you receive this document, keep it in a safe place -- in other words, don't crumple, stomp, or throw away -- this identifies you and your business with U.S. government and you will need this number when you file your taxes.

Third, you will need to check with your state government to determine if you need any specific licenses. Such as Retail Sales Tax Permit -- if you are planning on selling items offline or online.

Fourth, you may want to open a Business Account at your local bank once money starts to roll in. Keeping your money separate from your family account -- helps you to keep your accounting accurate for your business.

What percentage of your income will go to your State and Federal Government?

You will need to pay following taxes, at following rate, on a quarterly basis:

States Taxes -- 3.7% Federal Taxes -- 11.3% Social Security -- 12.4% Medicare -- 2.9%

The first year in business is difficult, because you have no idea what you will be making--You will need to make a conservative guess. However, you will only pay what you owe against that of your expenses (your net income). For example, if you believe you will have $3000 in expenses during year -- and you believe in your first year, you will make $6000-- you would report following:

$6000 (Money Made)- $3000 (Expenses) = $3000 (What you owe)

This amount would be divided among four quarters within year and paid to your State Government and Federal Government. If you find that you will be making more and you have paid in for one quarter -- you will have to adjust balance and divid it between remaining quarters.

The following is what you will submit to Federal Government: 1) Federal Taxes-11.3%, 2) Social Security-12.4%, and 3) Medicare payment-2.9%.

What is difference that leads some people to make a very good income with online marketing while others make a few dollars here, a few dollars there, but never really make any substantial income. What is most common mistake made by those who don't get results they are looking for with their associate or MLM programs? It's very simple. They are marketing WRONG website! Let's look at it a little more closely.

You know that nice self replicating website that you are given as part of package you received after joining affiliate program A. You know, one with URL that looks something like this: http://www.myprogram.com/affiliate/cgi?13658/