USA Website tax and accouting question

[Yuvi]

Hi, I am building a new website which will provide a platform to offer services to its members. There will be service providers and users.

Users will pay service fee to my website and service providers will provide particular services. Service providers will be paid by me after service is done.Basically I am earning money by charging 20% of that transaction as a platform fee.

So my question is that registering my website as LLC should be enough for me . Correct? Will I be responsible to report taxable income of service providers to IRS ? Or I will just pay them and they need to report their earnings because they are not my employees. I am planning to hire some accountant to handle my account once my website starts to grow but in the beginning I want to do all myself and just wondering if I need to worry about legal issues. Thanks for any comments.

 

[smallbushelp]

There are many things to consider when deciding which type of entity to form. No one else can answer that question for you without a full analysis and understanding of your business model and your personal tax and liability issues. You will be responsible for sending 1099 forms to companies or individuals that you pay more than $600 to in accordance with IRS guidelines. You can get information on when to send a 1099 from the IRS website.

If you don't have any training in, or understanding of, basic bookkeeping or you need some help with determining which entity type to choose, I would suggest that you consult with a qualified accountant now to help you get your entity and books set up and provide you with some training so that you get your accounting off on the right foot. Then you may only need oversight on a monthly or quarterly basis. The money will be well spent.

And yes, you should be concerned with legal issues.

 

[Yuvi]

Thank you so much for your reply.
Yes, I do intend to hire an accountant for all this.

I am looking to get an appointment this week with few.
I know I can discuss with them when I meet but if you don't mind , can u please answer few questions?

1. Do I need lawyer too ? To Setup LLC Is just one time thing ?
2. I was thinking to hire an accountant to do quarterly book keeping for me. What is the best software would you recommend to maintain my daily records? Payment received , purchase cost etc.

Thanks for taking time to read my questions.

 

[smallbushelp]

1. Yes, forming an LLC is a one time thing. You don't have to have an attorney do it. The process isn't that complex. There are companies that can do it for you or you could do it yourself. But if you're not familiar with that type of thing, hire someone to do it.
2. My preferred software is QuickBooks. It's really good for small to medium sized businesses because it has a strong accounting platform. It's fairly easy to learn the basics but does require some accounting knowledge for maximum benefit.

I'd like the opportunity to consult with you about your accounting or QuickBooks training if you're interested.

 

[Yuvi]

Can you please send me (u can PM me) your email ID or contact information so I can contact u in private.
thanks