Cont. Tax/Corporate Advise

When I met with my accountant a week or so ago to talk about paying state taxes he mentioned that I had to sign up with the department of revenue with the state and the sate unemployment agency to pay taxes to them to. I don’t see why I have to pay unemployment and a single employee 100% owned corporation but he said I had to and it wasn’t going to be much. Good news if affiliate marketing goes to shit I can get free money from the government!

So I signed up for all this crap as he told me and sent him the info for the accounts since he needs to have it to do my taxes. Today I get a letter from the unemployment people. It seems that I now owe them $500 in late fees for not signing up with them before 12/30/08 and then I still owe them whatever retarded tax they have. Great so in a week period I just lost another 1k to the government.

Advice time. As a affiliate marketer if you start doing major numbers you have to incorporate or your going to get fucked over really hard on taxes. I made a LLC S-Corp as many others have done and I thought I did everything needed. Seems I was wrong. There is no manual for a corporation, when you make one they don’t tell you shit. I had no idea I had to pay unemployment until a week ago. No book I had ever read mentioned it, no forum, and no one personally told me. (I think its intentionally this way so the government can scam you out of cash with late fees.)

When you start your coporation you need to find this shit out ASAP. Now that you know about it make sure to ask your accountant how to sign up and where to do it before it catches up to you. I am really pissed off that he did not mention this stuff to me before it was to late, but its partialy my own fault for thinking this stuff was easy and that I took care of it all. Find this shit out and get it out the way as fast as possible and don’t move to Minnesota.

UPDATE: I made several pohone calls today and it seems when I registerd with the state I set my date of incorporation as the first date I took wages, insted of 12/31/08 so I was able to fix that and have the $500 in fines removed. Phew!