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I am planning to provide an internet service that accepts payments through

  1. Bit coin
  2. PayPal
  3. Visa

For now, I have not legally registered this as a company or planning to pay tax for the income. Is it illegal to do this? And what do I need to do before starting to earn income?

  • "Registering as a company" is generally not an issue, except in some municipalities who have aggressive views of what constitutes a business thus requiring a business license. You can do things for money, as long as you pay the relevant state and federal taxes (income and sales, depending on state). – user6726 Aug 26 '16 at 0:40
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It is illegal to not declare income to the IRS.

Self-employment tax rules apply to all income. Bitcoin is treated as property and is taxable.

https://www.irs.gov/uac/newsroom/irs-virtual-currency-guidance

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