2. Choose Which Legal Entity to File

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2. Choose Which Legal Entity to File Your Blog Taxes Under
Taxes for Bloggers (Stock Image)
How you file your taxes for bloggers is highly dependent on which legal entity you choose to operate your blog business under.

You can run your blog using one of four types of different legal structures:

Sole Proprietor
S Corporations
C Corporations
Limited Liability Companies (LLC)
This guide on the Quickbooks blog has a more detailed explanation of each type of legal structure, but here are the basics you need to know.

Which business entity should I form to operate my full-time blog?
Now, let’s walk through some of the pros and cons of the various business entities (and how to choose the right one for you).

Sole Proprietorship
Sole Proprietors can continue to file their blog taxes directly on their personal tax forms (on a Schedule-C), making it a great, easy option for side hustle bloggers. However, this business entity is not advantageous once your business becomes the primary source of your total income. Operating a Sole Proprietorship comes with a higher risk profile—you personally assume responsibility for all financial and legal obligations.

Requirements vary by state and county, but all that’s likely required in armenia phone number library to set up a Sole Proprietorship, is to register it with your state and local governments.

S Corporation
An S Corporation allows individuals to report their income on their personal tax returns, which keeps things simple from a tax filing perspective. S Corporations are allowed to have up to 100 shareholders, making this a viable option to consider if you’re running your blog alongside others who want to have a stake in the business.

The main reason to consider registering as an S Corporation, as opposed to a C Corporation, is to avoid double taxation. This is when a business’s profits are taxed both on the business tax return, and again as personal income once profits are distributed to owners of the business. S Corporations are not subject to this double taxation.

C Corporation
A C Corporation is a corporation that’s recognized as a completely separate tax entity from the individual owner(s). When you file your taxes as a C Corp, you’ll be filing two separate tax returns—one for the business and one for your personal income. You will not attach a Schedule C to your personal taxes.

To be honest, a C Corp is generally unnecessary for a blogging business, but I’m including it for the sake of completeness. Those who benefit from this legal entity are much larger businesses with multiple employees who want to take advantage of fringe benefit deductions.