hi my name's miles Beckler and in this
video i'm going to answer a viewers
question and that is do i need a
business license in order to start one
get too deep into this a couple of
things first of all I'm in the United
States and my knowledge does not expand
beyond the United States I really don't
understand how it works in other
countries number two I'm not a lawyer
and I'm not a CPA so ultimately you will
want to work with a lawyer and a CPA at
some point but me having gone through
the process I'm happy to share my take
on it just don't take this as legal
advice or as accounting advice because
I'm not technically allowed to give that
sort of advice with that said I've spent
a long time understanding this and the
simple answer is no you don't need a
business license in order to start a
simple affiliate marketing business if
you're going to sell physical products
if you're going to be buying it
wholesale and selling maybe but
ultimately I think it's in most people's
interest to create an audience and to
sell affiliate products to that audience
and/or services and for both of those
you do not in any shape way way shape or
form need a business license so you are
able to operate as yourself it's called
a sole proprietor is what you would be
operating as and essentially you would
need to fill out a w-9 form for
whoever's going to be paying you so if
you're getting commissions from let's
let's say an affiliate network like
Clickbank Clickbank is going to require
you to fill out a w-9 form and
essentially you put your name you put
your social security number you sign it
and you mail it to them and what they do
is they track how much money you earn
and at the end of the year they send you
a 1099 form a 1099 form is essentially
like an independent contractors form
this is you being an independent
contractor and what this means is since
you're not an employee
they don't withhold any taxes they don't
pay your unemployment insurance and they
don't pay into your Social Security
you're required to do that on your own
now there's some really cool benefits
that come along with having one of these
businesses will talk about those some
tax deduct
benefits we'll talk about that on the
next video but for right now you just
need to understand that you're able to
move in these directions if you can
start selling WordPress services content
writing services any individual services
you can start right away and when it
comes down to the question of how do I
get paid
generally speaking they're gonna mail
you a check or if you're an independent
service provider you would just use
PayPal you can send them an invoice have
them PayPal you the money that's the
simplest way to get started personally I
operate it as a sole proprietor for
years at this point I have started a
corporation and you would want to
eventually start either a corporation or
an LLC and the reason most people go on
this there are two reasons most people
go in these directions number one is you
get some tax benefit out of it as a sole
proprietor you pay self-employment tax
which is a little bit on top of a normal
tax it's a higher tax bracket you can
also get a little bit more of kind of
protection legality protection or
liability protection when you use and
structure some of these business models
for you but ultimately you don't need to
go out and start an LLC or a corporation
to move in this direction in fact I
think that's a hindrance it costs money
it's like 800 to $1,000 minimum for the
filing charges and if you hire a lawyer
to do this for you it can easily cost
you thousands of dollars
now one other tip moving in this
direction just get started right you'll
be using your social security number as
you and you'll be reporting income to
yourself track all of the income that
you make very very religiously and track
everything you spend on your business
for all the tools and all the
advertising very very religiously I
would recommend you go set set up a
separate bank account you could run this
all through a PayPal account if you want
or just set up a separate bank account
at a different Bank with a totally
different card in your name and deposit
checks you get in your name from the
affiliate sales or from vendors and
clients who hire you for services
deposit those into that separate bank
account when you have business expenses
if you want to pay for advertising if
you want to sign up for clickfunnels you
would then pay for those business
expenses
out of that separate account and what
this will do is it'll save you a lot of
kind of like mental challenges come tax
time because you do need to report all
of your income and you are able to
report all of your expenses separately
from your normal wages which is called
w-2 so if you're an employee somewhere
you'll have w2 income and then you'll be
creating 1099 income personally one of
the greatest things I did in getting
started was hiring a really good tax
person who's been able to help me kind
of navigate this area if my all of my
funds went into one account my personal
stuff my job stuff my business stuff
went all into one account and at the end
of the year it was a nightmare so if
you're going in this direction a just
jump in get started get running but be
trust me go start a separate bank
account you're gonna save yourself
literally dozens if not hundreds of
hours of hair-pulling bookkeeping stuff
by simply keeping your business expenses
in one spot and your personal in a
separate account so I'm Myles Beckler
and thank you very much for watching I
do appreciate the questions again this
was a question from a viewer if you have
a question leave me a comment below or
if you just like to get the next videos
as they come out click Subscribe above
and I'm happy to share them with you
thanks for time have a great day
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