Who paying taxes on beat sells?


#1

My accountant told me that the government just told paypal to turn over names of people who made $20,000 or 200 transactions from sells!

I been paying taxes on my sells for the past 2 years. Its been overall rewarding because i can right off rent,bills,equipment, etc. just because i sell beats on the internet.

So this means that if you have made over 200 transactions and you have not paid then make your beat selling legal. Its gonna come back on you in 7yrs if you haven’t set up either a legal business venture, or claim it on your form.

This is a topic people really never talk about because they think they are getting away free. So why do you think paypal require you to put in a social security number or an EIN number.

I created a article for those who may need help on understanding this topic in detail… the link is

http://sellbeats.mikecbeats.com/free-material/89-starting-a-legal-musical-business


#2

My company is an LLC. Legal baby…Serious stuff…lol


#3

Hell Yeah! Me too… MikeCBeats LLC … We serious about it… lol


#4

I’m not near 200 transactions nor 20k but hopefully will be in the near future.


#5

yoo im tryin to get shit from mikebeats it dont let me the page just stays there loading dont show shit?


#6

try this link. www.mikecbeats.com/sellbeats
Page should load unless you are using your phone.


#7

Thanks for the topic, I will try to learn bout this since I expect a huge income in the future if everything goes as planned.


#8

yea deff all about registering! i just filled out my first tax return in the uk, dunno the rules in the states but as i have 4 major room’s in my house and i use 1 of the 4 for my business/making music it means i can claim 25% of my rent, council tax, electricity & gas bills. i also claimed against my monthly broadband bill. got a small check back from the gov, i say this because it’s probably more beneficial to be registered when your small n starting coz thats when it’ll cost u more n the gov will give u £$ back if your filing losses.


#9

The LLC is just for the USA. What about Canada and international?


#10

LLC is international. You can get them any where, only thing that might differ is how you pay your taxes. Some places require for you to pay sales tax and others dont.


#11

LLC’s are not in Canada.


#12

blitz204 wrote:

LLC’s are international. You can form one in Canada, i know three people with LLCs in Canada… Do a google search on it


#13

ayo mike the second link in your increase more traffic article seems to have moved. Let me know when you fix this so I can finish reading


#14

http://sellbeats.mikecbeats.com/free-material all those work fine on my end unless you are talkin about something else


#15

:slight_smile:


#16

Just to clarify this once again, LLC’s are not in Canada.

Canadians have:

  • Corporation (which can be used for limited liabilities)
  • Partnership
  • Sole Proprietor

So the american style “LLC” is not in Canada.


#17

In U.S., Sole Proprietor is like LLC but some states dont allow Sole Proprietorships like mines. Sole Proprietors have less legal lead way. Our Corporations are double taxed. I wonder if its like that in Canada?


#18

Londinium_Productions wrote:

Yeah that’s good. I’m planning to turn one of my rooms, of my future condo, into a studio business room. My business is legal.


#19

i went to the local competent tax authority here in my city in germany to register my stuff.
They told me it’s tax free as long as i’m not making more than 17.000€ a year (25.000$ or something like that) but i have to register it.
Yea i tried to register but those dumbasses don’t understand a 19 year old doesnt understand all the shit written on 6 pages to fill out so i was like “OH YEA FUCK Y’ALL IM STAYIN ILLEGAL”

They didn’t want to help me fillin it out…What should i do lol


#20

dun know myflow :wink:

Saru, I’d just go through it and fill it out the best i could n google any part i wasn’t sure off.
When u start u just need 2 tell them when you started trading (date) then each year they’ll request a tax return from you. With this you declare your recorded profits (all money that has come in) and you expenditure (every thing u spent). Mostly in ur case this will just be i spent x amount on this this and this, then add them up (only stuff you can provide evidence 4)
You only need to worry about percentages when it crosses with your personal life, like i said in my previous post i live and work in my house so the rent is 3 rooms personal use to live (cannot claim for) and 1 room to work, having somewhere to work is a business expence (just like a shop or office) so i divide my rent 25% of which is money i’m spending to have a place to run my business so goes on the claim.
There are sections for things that wont apply eg - a farm owner can claim for the depreciation in value in his equipment as this will be a large expense that after a number of years he will need to replace to continue workin but new stuff will later likely cost more than he paid 10 years ago. Like wise some1 who owns a property, if that property rises in value he has to pay taxes on that rise, think this is Capital gains tax.

any specific point your not sure on, post here n i’m sure some1 will have an idea about it.