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1. Set up a meeting with the local Small Business Association. Each and every community has some kind of small business “helper” organization (often run through a community college) that’s got trained specialists available to help you both getting your business starting and making sure that all of your T’s are crossed and your I’s are dotted. The best thing is that this powerful resource is almost always without charge.

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3. If you could afford it, work with an accountant. This will likely stop you from having to worry about the numbers and the taxes for your online business. You tell your accountant what you’ve earned and put in (you should have documentation for proof) and they do the rest.

4. Pay toward the taxes you’ll owe throughout the year. A good guideline is to pay 30% of every sale. You can do this every three months or even each month by making Estimated Tax Payments to the IRS. The IRS is right now set up well enough that they can take estimated tax payments from you when you feel like making them. This can save you from having to pay a genuinely distressing amount of money all at once which, if you haven’t been saving up for it, can be extremely stressful. What is much better is that if you have somehow overpaid through your estimated tax payments, you will get a reimbursement just like you would if you were working for a traditional employer. It’s vital to consult with someone at the IRS so that you can get this set up correctly.

5. Be familiar with each of your allowed tax deductions. When you manage your own business from home, there are a number of things, such as the money you pay in for utility payments, that become tax deductible–just like paying for other business related supplies. An accountant or an IRS agent will be able to help you know what all you can deduct come tax season.

It is not all that difficult to become intimidated by the idea of having to pay taxes when you are a web marketer. Fortunately, there are a lot of resources available to help you observe the law and still keep yourself from losing your shirt to the IRS!

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