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Or, can I simply take this as income for myself straight out, being taxed with the Schedule C, rather than the standard income tax?

My big problem is that I'm not even sure where to start looking for information about my current situation. If someone could point me to a place to start and a place to continue my learning.


Corey,
As a sole proprietorship, the money you make is taxed as income. It doesn't matter if you pay yourself or not, the income above your expenses is taxable. I suggest you check out our tax area: http://www.fool.com/taxes/taxes.htm

You also may want to discuss incorporation with an accountant. Since you have a few people working for you, this may be worth looking into for a number of legal and tax reasons. Also, if you have people working for you, there is the issue of whether they should be considered employees, or subcontractors. Also, money you pay to subcontractors must be reported to the IRS on a form 1099 if it's over a certain amount.

Just from seeing what you posted, it sounds like you are doing quite well. It may be worth the money to have a consultation with an accountant now to save you big tax issues later.

George
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