<p>I have a pretty big web business EC that I’ve been doing for some time (actually since middle school), but it’s only gotten “big” recently (as in the past year or so), so I don’t really have anything to say on the taxes. However, I’m probably netting around 4 digits per month now with a considerable amount of hardware and staff on pay. </p>
<p>How should I report this? I can corroborate with traffic stats from my servers and my revenue stats from my clients/paypal stuff. Will that be enough? I hope U Penn doesn’t think I’m dodging taxes heh. </p>
<p>Should I just do that? Or is there something else I should do?</p>
<p>Just do that. Send in a statement for a month, any other numbers you can throw at them and attach a note in your description that it has been making cash just recently. </p>
<p>Same situation with me. Major cash started up recently and thats what I am planning on doing.</p>
<p>BTW I remember that you didn’t open a corp. Did you end up doing that? You could always send in say the Articles of Incorporation document. Makes it professional.</p>
<p>Nope, I didn’t do it because I asked some one and they said I’d end up having to pay more taxes (dunno if it’s true though). Plus I’m not 18 yet :).</p>
<p>edit: Btw, mahras do you mind elaborating on what you mean by major cash? I’m really not sure what is major cash in the eyes of an adcom :(. I gross 5 digits, but my net is a rather small fraction :(, seems like high risk low pay haha.</p>
<p>Can any current wharton students with businesses share approximately how much they were netting from their businesses when they applied?</p>
<p>I have >18 people working with me so it was possible. Not sure about taxes…I actually just need to pay 15% federal corp tax (no state…if you fulfill all the conditions that is).</p>
<p>Anything with a healthy 4 digit/month net should be good. I am shooting for a healthy five figs by November for the corporation (not including what I make to outside investors). Big upcoming launch of a new product in two weeks…if it fares well I should get to that goal otherwise I will be in the same league as you. </p>
<p>Its not that you are risking much, its just that you are in a business with high costs (maintain/upgrading systems, communications lines). Grossing 5 figs with 4 figs net isn’t shabby at all. Most of the “businesses” listed by people are <4 fig generating operations (saw a bunch which netted <4 figs in a year).</p>
<p>Ah I see. I don’t think I’ll be going ED to Wharton actually. I’m leaning a bit towards P’ton/MIT (EA). I’m not really set on business as a career, it’s appealing, but I’ve never taken it that seriously.</p>
<p>I’d go MIT for sure (Sloan + tech), but I don’t think my science stats are up to par.</p>
<p>Edit: Technically I’d say MIT is my top choice right now, but I don’t know if I’ll go early mainly because of the above reason, and also because MIT doesn’t give that much of a boost to it’s EA applicants (as opposed to Penn and P’ton). Actually, I’m not sure if Wharton gives that much of a boost either…</p>
<p>Yep, that would be good as well :). I just don’t know now… heh</p>
<p>The whole vibe MIT gave me was really good, and I really liked the school. Didn’t get a chance to visit Penn though, that was probably a mistake :).</p>
<p>Jerry…I think MIT early action gives you more of a boost than they admit. Keep in mind that since MIT has non-binding EA, you can apply to Penn ED and MIT EA at the same time. If you do that, however, you’ll be bound to go to Penn if you get accepted. Still, you’ll get as much of a boost as possible, and if you like both schools you can’t lose. </p>
<p>FYI, I did the above and ended up getting deferred and later accepted from both. I think having the early app in showed that I was really interested and definitely helped.</p>
<p>If you are dead on about MIT being first choice then apply EA.
If its a toss up between MIT and Penn do EA/ED both, this way you increase your chances of attending either one of them. However, you need to be sure you won’t have any issues attending Penn if both schools accept you because you will be bound.</p>
<p>Sure. I have a FX spot liquidity providing/introducing brokerage gig with a bunch of dealerships (I generate all trades through my corp). Also have client accounts which I direct and am paid a fee depending on performance.</p>
<p>sorry to semi high-jack the thread but i have a related question…</p>
<p>Ive been running a landscape business since my freshman year. i have "employed " multiple kids and grossed about 7 thou. but i dont report the income to the irs, how do i frame that for penn?</p>
<p>Is that 7K/mo? Are you incorporated? Do you have recipts to prove it? (or bank statements, client accounts etc). Those are important proofs you should submit. </p>
<p>The fact of the matter is that simply having a “business” doesn’t mean anything. Adcoms understand the difference between a web design “business” making 4 digits per annum and an operation making 4-5 digits per month. The responsibilities and work load that comes with the latter is exponentially greater than the former. Do you spend a significant portion of your time per week on your business? (20 hours+) Do you consider it a major part of your activities in terms of using your various skills? If you answered yes then it probably matters (of course with results to back it up). </p>