[HCoop-Discuss] tax crap

[Nathan Kennedy]

Reply to Matthew's questions before he signed off:

You don't have to do anything "tax-wise" for HCoop.  That is to say,
since HCoop is an non-share, non-profit corporation, membership in HCoop
has no tax implications for its members whatsoever, any more than being
a member of the ACLU or the NRA would.  That was a big reason for
incorporating in the first place, besides liability concerns.

The issue of making money on your HCoop-hosted website is completely
separate, and is your own responsibility.  As per the source you cite,
if you are making money off your own website, you'll owe self-employment
income tax on it.  Keep in mind the "net earnings of $400" applies not
just to an individual website you host, but to the aggregate of ALL your
earnings in a given year, whether it's from selling crap on eBay at a
profit, mowing your neighbor's lawn, etc.  In other words, if you make
$150 selling crap on eBay, $140 mowing your neighbor's lawn, and $30
from advertising on your website, ALL of these amounts are reportable,
taxable self-employment income, including the entire $30 in ad revenue.
Obviously this is beyond the scope of your membership in HCoop and I
can't give you legal advice, so if you have real concerns you should
visit a tax professional or lawyer.

Speaking of taxes, the year is almost over and that will bring certain
annual duties on my part.  Namely, filing a Form 990 report (in lieu of
the corporate income tax return that we _don't_ have to file anymore),
paying our registered agent, and looking ahead, preparing for our third
Board of Directors election, and filing our Pennsylvania Annual Report.

-ntk

06:01 < teer2> From IRS.GOV
06:01 < teer2> Self-employed individuals, sole-proprietors, independent 
               contractors and persons who have net earnings of $400 or
more 
               are required to pay self-employment tax
06:02 < teer2> So, looks like I am safe with the little I can make on
the sit.e
06:02 < teer2> Do I have to do anything tax-wise for this coop?
06:03 < teer2> I wonder if this is applicable...
06:03 < teer2> As a member of a partnership that carries on a trade or 
               business, or as a member of a Limited Liability Company
(LLC) 
               that chooses to be treated as a partnership, your
distributive 
               share of its income or loss from that trade or business
is 
               included in your net earning from self-employment. These 
               entities must report the business income and expenses on
Form
               1065, U.S. Return of Partnership Income, along with a
Schedule 
               K-1 reporting each partner's 
06:03 < teer2> completed Schedule SE attached to your Form 1040, U.S. 
               Individual Income Tax Return.