Yes, you do have a business. Since it is online business and there is always risk involved - you may want to consider forming a separate entity such as a Corp (and file as a S Corp) or a LLC.
You will be required to report any profit you make from the website to the IRS. YOu will be able to claim the expenses too. You will be taxed on the net income. Considering that you will have expenses for setting up the business, purchasing required licensing, advertisement etc- you may not have profit in the intial couple of years. This loss will be claimed on your tax return and will offset your other income.
Let me know if you have any question.
Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.
Since you are not buying or selling the text books - You will report only the fees that you make on these transactions. You do not have a responsibility to report members who sold certain amount in a year.
You should hire a CPA or an accounting and tax firm to handle all your quarterly and annual filings. They should also be able to do the year end taxes and assist you with your tax related questions.
Most of the fees that you pay in the ordinary course of business are deductible. You can bundle them together or even claim them as separate items.
Certified Public Accountant (CPA)
CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..