I get a lot of emails from people asking whether they need to pay taxes starting an online business. The simple answer is: yes, you will need to pay tax down the line. But that is not the top priority right now.
There’s a lot of steps between where you’re at when you’re first starting out and you’ve never made a sale online. And then generating enough profit to even start considering questions like:
- Should I pay tax?
- Where do I get an accountant from?
- What do I need to do to register my business?
- and so on and so forth.
What I wanna talk about is the space where this question often comes from. In my experience, it tends to be that the question is asked from a fear-based perspective. In other words – somebody’s looking to start an online business. Their subconscious mind, is trying to plan and figure out every single little step down the line. Predict the future of how everything’s gonna pan out. That’s with the aim of giving the subconscious mind certainty.
Our Biological Programming
Because we’re venturing into unknown territory, we’re doing something we’ve never done before. And what our mind wants us to do is to stay safe within our comfort zones.
Our biological programming is designed to keep us within our comfort zones. Because humans, when we stay within our comfort zones, we tend to stay safe and we tend to stay alive. When we venture outside those comfort zones, we tend to get eaten by dangerous tigers, or starve to death, etc. In evolutionary terms, our comfort zones are designed to keep us safe.
Improving On A 100m Sprint
So when somebody’s asking this question, when they’ve never made a sale online. They are saying I think I need to figure out what I’m gonna do with my tax situation before I start. That’s kind of like saying, I’ve never run a 100-meter sprint in my life. But I don’t know if I can start. Because I haven’t bought the best sportswear that’s gonna help me to get my time from 11 seconds down to about 10.5 seconds.
I’m not a 100-meter sprinter. If you are, you can probably tell. To run the 100 metres in 11 seconds is very professional level.
Fear-based Thinking
If you’re stopping yourself from starting an online business because of this question. What do I need to do about my tax situation? What we’ve really gotta look at is the fear-based thinking that’s asking this question.
Because you will never figure out every single step ahead of you. And every single thing that’s gonna happen. You will not find certainty. And so part of the journey of entrepreneurship is learning to embrace uncertainty.
Learning to be okay with taking steps forward. Even though you can’t see exactly every little detail of how the path is gonna unfold in front of you.
We’ve gotta trust that if we know what we’re looking to achieve. We have a goal in the future that we want to move towards. We’ve gotta trust that there’s gonna be a big area between where we want to get to and where we are right now. Where we can’t see every little detail. But we’ve gotta trust that as we take steps forward, more steps are gonna reveal themselves in front of us.
And then we’re gonna get more clarity to continue moving forwards, and so on and so forth. We have to learn to embrace uncertainty. If you’ve never made a sale online. Don’t start questioning and thinking about whether you should start an online business.
When This Question Becomes Relevant
Because if I’m earning like, 50’000 a month, I’ll have big tax problems. Oh, I won’t start, in that case, because I’m not sure how I’m gonna solve this problem. Let it go! Take the first step. The first step, if you’ve never done anything online before. It is to start finding an education, a community, mentors who might be able to help you and guide you in the first stages of that journey.
Down the line, when you wanna register a limited company. When you wanna get an accountant. When you wanna start thinking about tax because you’ve got profits coming into your bank account. Solve that problem then. Don’t try and solve a problem that may not even exist in your future before you’ve even start.
Conclusion
You don’t need to worry about taxes starting an online business. Make your first sale online. Get used to taking action. Get used to taking those steps forward. And watch how your results start to improve day by day by day.
Embrace that uncertainty, move forward!
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