How do I declare taxes for this business?

[Axcend]

What is the name of your state (only U.S. law)? Florida

I have started conducting a business that helps foreign businesses with American sales banking. Without too many specifics I provide their banking options for receiving payments (from paypal). I take out my percentage that was mutually agreed upon then I EFT/wire the remaining money to their bank account.

Other than the obvious know your customer to make sure you aren't laundering money, is there any other legalities I should be worried about? Also what do I declare to taxes? I would declare my percentage of the money, but should I be declaring all of the money for taxes, or is that the business owner's responsibility.

Thank you very much for your time!

 

[LdiJ]

What is the name of your state (only U.S. law)? Florida

I have started conducting a business that helps foreign businesses with American sales banking. Without too many specifics I provide their banking options for receiving payments (from paypal). I take out my percentage that was mutually agreed upon then I EFT/wire the remaining money to their bank account.

Other than the obvious know your customer to make sure you aren't laundering money, is there any other legalities I should be worried about? Also what do I declare to taxes? I would declare my percentage of the money, but should I be declaring all of the money for taxes, or is that the business owner's responsibility.

Thank you very much for your time!

Since all of the money is going through your account, you would include all the money as "gross" on your taxes, but expense out the money that you pay your customers.

 

[tranquility]

Although the question was not asked, accounting needs to be very specific and detailed. The reason for this is that it is the way money is laundered. The OP will also have to be registered with the U.S. Treasury as a money service business and, for simplicity, should try to keep all transactions in the U.S.

The OP was only talking about taxes, but could very well be committing a felony(s). Also, he needs to know his customers. If old Abraham is sending money to Achmed for illicit purposes, without proper vetting, the OP is the easy one to find, arrest and twist for info.

The feds follow the money. It was/is the most useful thing related to terrorism the Bush administration was successful at. The OP must do this correctly or will join others who launder money in the federal graybar motel.

 

[Axcend]

Thank you all for your prompt responses. Exactly the information that I was looking for. I am trying to make this 100% legal and free of worry. I do request sales invoices so I can keep track of all the money to make sure that there is not any laundering going on. That is my biggest worry: not having all the proper registrations and documentations to make sure I am not on the wrong side of uncle sam

 

[tranquility]

Google "money service business".

 

[Axcend]

For anyone else interested in finding more information on this subject, here is the best informational website I have found. I apologize in advance if links are not allowed.

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