1. BLOGGER FINANCES

2. Speaker Bio
Kelly Whalen is the author of Centsible
Life (thecentsiblelife.com), a blog
designed to help you live the life of
your dreams on a budget.
She started her blog 4 years ago, and
has since become both a well-known
mom blogger and a respected voice in
the personal finance realm.
Kelly is a mom to 4, and loves that she
can stay at home with her kids, and still
pursue her passions for writing, personal
finance, and social media.

3. Disclaimer
This presentation and Kelly Whalen’s advice are not
intended to take the place of the advice and
expertise of financial advisors, certified public
accountants, or lawyers.
All information shared is intended to be used as
guidelines for managing your finances as a small
business and blogger.
Please speak to a professional should you have
questions, concerns, or need guidance.

4. Bookkeeping Basics
Track your income and expenses in one place.
Evaluate income versus expenses monthly.
Spend smart-consider long-term value and
whether they are tax-deductible.
Know your take-home pay after expenses and
taxes.

5. When to Set Up Business Accounts
Ideally when you start your business.
Often considered once you have established earnings beyond
your expenses.
Bloggers can operate as:
• A ‘hobby business’ is one in which you do not earn money,
however you file taxes as a means of offsetting your
loss/expenses.
• Sole Proprietors (sole owners)
• Limited Liability Corporations or Limited Liability Partnerships
(provides legal protection of your personal assets)
• Corporations (typically for larger businesses with employees,
profits are used to pay shareholders or for profit)
• Non-Profits (corporations that use funds to achieve goals as
outlined in their articles of incorporation)

6. Legal
Requirements vary by state. Check your state’s website (or
the state where you’ve filed) to learn more.
Tax ID Number: Apply online at http://1.usa.gov/15ezz9D
Freelance writing, consulting, etc. can be done as an LLC,
Sole Proprietorship, or Corporation.
Plan for the ‘end game’ in writing.
• What happens when the business closes?
• Who gets the business in the event of death?

7. Banking
Always use a business account that is separate from personal
finances.
Type of accounts to consider:
• Checking
• Savings
• Self-Employed IRA or 401k
• Business Paypal
• Business Credit Card
What you need to setup accounts varies by state.
Consider: Local credit unions.

8. Taxes
Taxes are a large portion of the expense you have a small
business owner and blogger.
Taxes include self-employment tax (Social Security and
Medicare), income tax, and state and local taxes.
Compensation in the form of product, cash, and gift cards
are taxable.
Use wholesale pricing for product, not actual retail value.
Remember taxes when you accept compensation.
Set aside money for taxes. Typically 30-40%. Pay quarterly to
the IRS.

9. Tax Deductions
Consider tax deductions when spending.
Fees, services, business travel, and educational materials are
some examples.
Common blogger deductions include:
• Domain Fees
• Hosting Fees
• Design, Consulting, or Freelance Services
• Internet Access (% for business use)
• Computer or cell phone (% for business use)
• Office Space (% of space)

10. Estimated Taxes
If you received a refund for 2012 in most cases you do not need
to pay estimated taxes.
If you have a large increases in income consider setting aside
extra or paying estimated taxes anyhow.
Have a corporate job or a spouse that does? Consider adjusting
withholding (getting less in that paycheck) to offset taxes that
you will owe.
Find dates and information about federal tax due dates
here:http://www.tax.gov/calendar/

11. Tax deadlines
Estimated Tax Due Dates for 2013
• January 15th
• April 15th
• June 16th
• September 17th
Yearly Taxes Due: April 15th

12. Resources
Online Account Management:
Mint (available as an app)
Your Bank’s Website (possibly available as an app)
PayPal (available as an app)
FreshBooks (available as an app)
WaveApp
Apps:
Expensify
Shoeboxed
Organization:
NeatReceipt (scanner)