MLM Directory

"Registering with the city as self-employed?""?

I am not sure if anyone is aware of the website MTurk it's basically a website run through Amazon where companies can "outsource" work to freelancers online. So last year I had about $6200 in income from MTurk and I also had a few hundred from Amazon Associates (where they pay you a percentage of sales from your links - basically affiliate marketing) My husband did Mturk as well last year but he is not doing it this year. Last year he only made about $200. We used an accountant and he reported all income, filled out the appropriate schedules, and we had some deductions, etc. We both have regular jobs as well. Anyway, so when we filed our taxes, our accountant mentioned that we should "go and register as self-employed with the city" at the city Office of Finance and I am still trying to figure out what he means but I am thinking he means to fill out a "Business Tax Application" because that is the only thing I could find. My city is Los Angeles. So I have 2 questions: (1) What do you think was meant by "register as self-employed with the city"? I have tried to contact my accountant but his response was not very helpful: "Yes, please register with the City of L.A. - I’m not sure which form to complete – It’s best to stop by a local office. Please let them know that you are each doing data entry work from home – you generated $6XXX gross income for 2010 & HUSBAND generated $200 gross income for 2010. Once you are registered – they will automatically send you the Business Renewal forms in January – to be completed by the end of February." (2) Would my husband need to do this as well? He did MTurk last year and only made $200. He is not planning to do MTurk this year. It seems like way too much hassle and I'm not sure why he would suggest he register as well. Thanks!!!!!!!! - Brittany

Public Comments

1. Why don't you check with the LA City Clerk office? They are the ones that handle permits and business licenses and certain would know what your accountant is referring to. My guess, is that your accountant thinks you probably need a business license for a home business. California laws are pretty stringent, and while work-at-home self employed workers don't need a business license in my state, they might in yours.
2. Ask the accountant who told you to register. If he doesn't want to take the time, ask him for some direction.
3. 40 yrs ago, I would have suggested the same thing. Not now. a; your earnings from that Mturk is an aberration; most earn zero. b; all companies are permitted to crate research and development operations if they wish to create small firms.......YOU are not; you are earning and so is husband, irratic money. Thus, unless you want to declare lots of expenses, it is not viable to declare this intermittent extra income. IF you wrote down your expenses, you would have no extra income--you have to take time to list your services, pay for the Amazon listings, etc. Keep the extra cash and enjoy. Just tell the acct "no thanks".........put it down as R and D for writers. Brittany and assoc writing lab.