Internet Marketing is a business.  But are you treating it as a business or are you just playing at IM?

I don't see this issue addressed here much so I thought I might provide a bit of insight.  Please keep in mind that I am not a Lawyer, accountant, IRS agent or Financial Planner.  I'm just someone that is trying to make a living online.

It is my understanding that (in New York) you need a DBA to do business here.  The threshold is $600.  If you make more than this you should file a Doing Business As (DBA) form and choose a name for your business.  This is checked against the County listings and your name is granted. There could be another business in the next County with the same  name but you get it for your County.  This automatically gets you identified as a company in NY. 

By default your business type is a Sole Proprietorship.   This means that you (and only you)are responsible for all of your debts and obligations.  You also get all the benefits.  In NY you need to fill out another form and pay the fee to be legitimate.

If you feel the need to separate your business from your personal assets then an LLC is the way to go.  This is much more involved and requires posting a notice in the local papers for 6 weeks. A Lawyer can help set this up.

You probably want to get an accountant to help with all the tax planning and money stuff that accompanies a successful IM business.  

So, are you working at IM or just playing?