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Are Pseudonyms Necessary?

Lots of folks who make money online do so using a pseudonym. They think up fake names for themselves because they would like to ensure that their IM lifestyle stays separate from everything else, particularly when they only do IM part time. Many new and part time IMers worry about being discovered by bosses and friends. Obviously, even though you don't worry about this sort of thing it is still important: should you choose a pseudonym for the work you do online?
There are plenty of advantages associated with using pseudonyms. The most important benefit, by a long shot, is having the chance to build an identity for yourself that is completely separate from your personal life and makes it easier to make sure they stay totally separate. People who perform in mainly strict or demanding fields or who are surrounded by those who view the Internet as a sketchy place benefit from using a pseudonym because it protects them from judgment.
Another reason many IMers decide on a pseudonym is that it helps them if they want to develop several products in several different fields. This way you'll be able to create expert level ...
... reputations for yourself in a number of fields without having to worry that people think you are only a dabbler. You do not need to be worried about anyone saying "but what about the conflicting market that you are also selling in?" because you'll be doing that selling under a different name?
Sadly, nevertheless, often folks choose to use pseudonyms because they do not want to pay taxes on the money that they earn in their businesses. They believe that if the business is not conduced under their legal names, then they won't need to worry about any of the money they earn being reported to the IRS. It is very important you don't fall for this defective logic. Even when you earn money under a name that is not your own it is still viewed as income and you will be held responsible for it. Further, the IRS is going to find out what you do and cheaters are always found out.
Whether or not you choose to use a pseudonym for the business you do is totally your choice. For some individuals it is just simpler to have one name for their daily offline life and another for their online ventures. For other people keeping everything under the same name is just easier because it means they have fewer things to remember. Source: webpage
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