Are bloggers really making a profit?
We have been covering what it means to own a business but I would like to talk about, are you really making a profit being a blogger, article writer and or webmaster? We hope this two part series and blogger expense report guide makes people aware that even article writing and blogging should be looked at as a business venture. Even though you do not sell a service per say it still is a business if you make a profit after expenses.
The stage was set when I woke up this morning a good friend of mine forwarded me an article headlined “Philly requiring bloggers to pay $300 for a business license”. After reading the article I had to laugh although this is no joking matter that States and local governments are demanding their “fair share” when tax payers start making money at blogging, it was funny because we just started talking about this. People need to understand what a business is and the monetary investment you are already committed to.
As I said in previous articles being a blogger, author and webmaster should be looked as a business venture. Let’s say you never ran your own business so I am assuming you have no idea about all of the added expenses that comes with running one. If you work for someone weekly it can be easily understood.
You wake up and start your work week and head to work for your regular job. When you get to work the first thing you head for is your locker, it is then onto to the coffee machine and you grab a Styrofoam cup fill it with cream and sugar then stir it with stir sticks. Then dump the stir stick into a lined trash can. You sit down and read the paper before punching in. You punch in with your time card and put your uniform on, then strap a lanyard on your neck so people can identify you. Here is what is considered as an expense for your employer.
Business Onetime Expense
- Locker
- Hangers in the Locker
- Locker name badge
- Coffee machine
- Company table you sat down at
- Garbage can
- Time card machine
- The lanyard you’re strapped on your neck
- Uniform
Business Weekly Expense
- Cream, sugar and stir sticks
- Garbage can liner
- Garbage pickup
- Your time card
- Uniform cleaning service
As you can see I divided the expenses of your employer up into two categories this can be divvied up even farther. Each of the above should have a dollar sign attached to them and be expanded to cover every single thing you use as an author to write articles…
A onetime expense price will cover the initial cost of buying that item from the store.
A weekly expense is just that you have to pay out weekly to buy said items.
To put this in perspective I paid close to $750.00 for my Herman Miller Mirra chair, real long story why such a costly chair but you get the point. My Mirra chair I sit in daily for blogging is a onetime expense. Plus it can be considered as a yearly expense if I have to buy new parts for it. So in order for me to file a business tax return I would have to make at the least $750 in one year to recoup the price of that chair. If I don’t make $750 then I would consider it as a loss which is not tax deductible and does not require me to apply for a small business license or file taxes as a business. In order to be a business you have to be making a clear profit after expenses.
But let’s not get off track. Everything around me in my office at home is considered an expense even right down to the condiments I use in my bathroom to the gas it takes to pick up those business supplies. I need these supplies in order to do the thing I do and that is blogging. If my expenses exceed what I make from my blogging venture then how in the world can a local government require me to file for a small business permit? The kicker is they can’t if you know how a small business is supposed to run.
I would suggest if you are a blogger or webmaster making any form of money to cover your back and write up a blogger expense report to show if infact you are making a clear profit. Then and only then will you have to file taxes. That is, if the expenses outweigh your overall sales then you will have to file a tax statement. Please read the note attached to this article that pertains to legal advice.
Blogging Expense Report
Your blogging expense report should be divvied up into these following categories.
- Daily expense
- Weekly expense
- Monthly expense
- Quarterly expense
- Yearly expense
With my years of experience as a business owner gives me hindsight when it comes to running a business. Each state and local laws will have their own set of requirements of business registration. I would suggest getting ahold of them and asking them do you have to file for a business if that said venture is not showing an income? I think the answer you will get is no.
Check back tomorrow when we cover blogger expense report in much more detail and break it all down for you even farther.
By no means should this article be construed as legal advice of any kind. You get legal advice from a lawyer, accountant and or your tax preparer when dealing with small business and tax preparations.
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