I pay around $40 a month for web hosting. Do I have to do any special paperwork if I want to sell some space to cover cost and maybe make a little profit? The most profit I imagine making is $100 a year.

I believe that some host do not allow 'reselling' of space when a shared account is bought.
If you wanted to reseller and do not want to share your control panel, I suggest you switching to a reseller's account thus you can sell your unused space/bw and also assign individual control panel to each client. Also this will ensure that you are not breaking any TOS by reselling your space as you are allowed to in the resleller's account :)

You can also just downgrade your hosting account.

I am using a VPS server and it is just like a dedicated server, so I can easily create plans. I am also using the smallest VPS plan.

Originally posted by blasto333
I pay around $40 a month for web hosting. Do I have to do any special paperwork if I want to sell some space to cover cost and maybe make a little profit? The most profit I imagine making is $100 a year.

blasto333, the safest thing to do would be just to contact your current provider and ask them. :D

I know that I allowed to resell space, but if I make a profit of $100 do I have to report it to anyone? I am not sure how you are suppose to go about doing this.

Depends on local laws. Usually at that amount you wouldn't. I am guessing you mean as far as taxes go and stuff like that. But you could always ask an accountant about stuff like that.

Thank you, I wil check with an accountant if I make a profit.

Thank you,

Chris

I have heard that you do not have to report profit unless it is over a few thousand. I am not sure of the exact figure though.

$100 a year is not really what I could call profits. I believe you probably spend more money getting everything set up so that you could report that income level.

Maybe what you could do is to pool a few friends together have them share the cost while sharing the resources of the VPS.