Hello, I’m starting a new business. One of the major aspects of my business would involve using online affiliate marketers. I was wondering what the tax implications of this would be such as: would I need to send out W2’s to all marketers? Also, if this would be something I need to do, do you know if it is difficult to file this (especially if I’m on a low budget and do not have a team of lawyers to help me with this)? How difficult and how much legal knowledge does it require to set up a system to send out annual tax statements?
My business is based off of having many affiliates working for me and probably working very little (some affiliates only making $5-$10 per year because the effort of marketers if very little and would take them less than 2 minutes. Considering the expectation of many affiliates at low commissions, how would sending out tax returns hurt my bottom line?
Thank you for any and all advice you can give.
Dude one of the first things a new business is supposed to do is get good advice. Talk to a lwyer and find an accountant. This is what they are there for.