legal questions, tax, etc.

I had a couple questions about web host reselling:

1.)Do you need a tax id?
2.)If you make money, do you need to report this on income tax with profit and loss, expenses etc., not sure you would since I am guessing most people reselling don't have a registered company with a particular state as a sole proprietorship or corporation etc.

Hi Steve,

Your particular tax requirements are likely dofferent than ours, since it depends on which jurisdiction you operate. We operate in Canada, and therefore have an incorporated business in Canada. We file Canadian Corporate Income tax returns.

Whether you incorporate or not is entirely up to you (and dependent on the laws of your jurisdiction). But whether you do or not, you would still have to report your income.... either as a separte incorporated entity, or personally as a sole proprietorship. I believe your IRS would require that. But again... we are in Canada, so I am not familiar with US laws. But in Canada, it is required to report all income from all sources.

You may want to ask a tax advisor or accountant for advice.

Regards,