business tax id or license

I was wondering if I launch either a website or directory that makes money on either adsense or some other ad program or directory submissions, do I have to set up a business tax id or get a business license?

If not, how do you report the earnings/expenses for the website/directory?

 

Both of these questions are in debate everywhere. But if your sole prop. selling services (like ad space) you won't need tax id. The business license thing isn't completely settled and most likely never will be because it just can't be enforced, but non the less it is only relevant to state and local. So not to worry. Even if it changes today Sometime by next millenium they might find you. Otherwise you simply report the income and expenses and pay income tax and self employed SSI, if your income grows fast and your not paying quarterlies then you will certainly need to look into ... this assumes your in the states.

Making money off a directory, is that possible? I've been told if you generate 25.00 the first year you've been a success. If that's wrong tell me fast.

 

There are many people here on DP that run/own directories, for you guys what do you do in regards to this issue?