Affiliate Business in New Jersey

[muhacus]

I started an affiliate business in NJ about 2 years ago. In July 2008, I quit my job and went full time.

So my 2008 tax return was done as a sole proprietor. I itemized my return also showing my w2 and my wife income as well.

Now for 2009, my entire income is from affiliate marketing. In June this year, I created a Nevada LLC. However, all of my affiliate checks are still under my personal name and the affiliate networks will probably send me 1099 under my ss#.

I am now totally confused on how to prepare for my tax return.

About the nexus issue, I focus on the lead generation side of affiliate marketing, so I get paid on a lead basis. So there is not a sale transaction involved.

[Diane Kennedy]

First question: Is the LLC, a single member LLC? If so, and you haven't elected how you want to be taxed, you will need to report this as a Sole Proprietorship (Schedule C).

You'll also want to have your customers switch over to paying the LLC and using the EIN of the LLC.