Note: This content was originally written by Titimowse ("The Professor") and published on the old Cozyacademy.com over 10 years ago, a site that is no longer live and, as a result, the great wealth of knowledge it provides for the adult webmasters community was nearly lost. I recovered this article from an old archive and no part of this work belongs to me. I republished it here for the benefit of the adult community.
As the saying goes, there’s nothing certain in life except death and taxes. But if one really examines the truths of human existence, death can only come after life and taxes must follow money. In the modern world, one must work to make money and test tube babies aside- life can only occur after sex.
As an adult webmaster, you deal and trade in what we all need to create life: sex. If you do it right, you make money. If you make money, your government wants you to pay taxes.
Maybe it’s wishful thinking but for some reason, there are adult webmasters who think the dollars they make from selling sex on the web are not subject to taxation. Perhaps it’s because they aren’t familiar with how things work for the self-employed. Site operators could be under the mistaken impression that their web incomes fall under the radar of the taxman. Then again, the person who refuses to give Caesar his due is probably a fool.
Money is money. Income is income. It doesn’t matter that your business is run in a virtual environment. It doesn’t matter if your income comes from a foreign shore. Wherever you are, whatever ever you do to make a living, you will owe taxes.
In America, working citizens must pay a Federal Income tax annually. Most of each of the fifty states requires workers to pay an additional income tax. US employers are obligated to pay taxes on their employees. Self-employed Americans have to pay a tax for being their own boss. Those who don’t pay are found out and penalized. Each country, region or province on the planet has some form of taxation that’s enforced upon its working residents. Tax money is the money that pays for the apparatus of human civilization.
Without taxes, there would be no money for the basic tools of a hygienic, safe community. No water treatment. No streets. No street lights. No trash disposal. No police protection. Sure, taxes also pay for less savory things like salaries for crooked politicians. That doesn’t make taxation an evil concept. Ultimately, the idea of the tax is a good one in spite of its abuses.
In the brick-and-mortar world sexually oriented businesses are often mandated to pay more in taxes than a mainstream enterprise would have to pay. In the states, this kind of tax is referred to as a “sin” tax. Fortunately on the Internet, porn mongers aren’t as yet subject to the authority of sin taxes. Just the same, if you make money from the web, you have to pay taxes on that money.
If you don’t make that much money from web smut, then doing your own taxes is probably going to be a fairly easy process. If those crazy tax forms are hard to decipher, there’s a lot of tax software out there to simplify the operation. For instance, a great many US adult webmasters file their taxes under a contractual employee/self-employed status.
However, as an adult webmaster, it’s always best to consult a professional accountant. Whether you’re a modest affiliate or a successful paysite operator, the knowledge of a competent accountant can only help you tax-wise. The type of accountant you should look for depends on your particular situation.
Whereas, there might not be many accountants who specialize in porn, there are definitely many that specialize in taxes for businesses. Naturally, you’ll encounter a few who don’t want to work for a smut peddler. Nevertheless, there are many who will be perfectly happy to review your records and help you file your taxes. Find an accountant who is friendly to adult.
One way to pre-screen a potential account is by phone. Dial up an accountant. Without divulging your name, tell them you work for the adult Internet. Ask them if they would be willing to work for you. If they say no, keep calling until you find an amenable candidate. When you find one, call up the local Better Business Bureau and see if there are any complaints against your possible, new number cruncher.
If your accountant passes muster, then you’re good to go. If you make a lot of Internet porn money, then you’ll probably want to go farther and hire a tax attorney, especially if you pay employees or contract laborers.
Whether you hire a professional or do it yourself, taxes must be paid and filed. Life holds necessities and the surest one of all (before death) is taxes.