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06-28-2010, 11:35 AM
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Lowengard is offline Lowengard
Status: Member
Join date: Feb 2010
Location: New York City
Expertise: all editorial, bsns consulting
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The short answer is: yes.

Assuming you are in the US

If you are paid for providing goods or services to others, the money you earn is subject to Federal Income Tax, and almost certainly State/municipal income tax. You may also be liable for other taxes as well, depending on where you live and how much money you earn from this business.

It doesn't matter where your clients are located, or how they pay you.

If you plan to continue freelancing you owe it to yourself to look into the details. Non-payment of taxes means you're liable for interest on unpaid sums. Not filing the tax forms means you're liable for huge penalties in addition to that interest.

The US Small Business Administration has a several initiatives to help small businesses, including business-creation basics. You'll find most of this online. The SBA frequently offers free or low-cost seminars through the public library system: if you live in or near a city with a good public library, check there.

I offer a "basics" course but the next time won't be until late summer.