Timeline for Adult Entertainment Taxes; Independent Contractor, SMLLC, LLC, S-corp, etc?
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| Jan 23, 2021 at 6:20 | comment | added | quid | If I were you I'd look for an accountant in the closest big city to you if the two locals aren't open minded enough. Pretty much everything you need to do can be handled via telephone (or zoom) and email. You really just need someone in your same state because states have different rules. Depending on your relationship with a club owner you could ask that person for a referral, or really a local small gym owner probably would refer you to their accountant. Otherwise I would just search various terms on this site because there are a lot of good questions and answers related to self employment. | |
| Jan 23, 2021 at 6:08 | comment | added | Wonderingway | Quid - thank you, I didn't know that was a business term. Sorry, about the misunderstanding. With the account part, it is almost like the maijiuana. I've had banks, close my accounts. My job is legal but a lot of businesses see it as unethical. Maybe, I'm just getting the bad end of tax accountants. I'll keep calling & try bigger cities. Mine is a small, southern town. We only have two accountants. | |
| Jan 23, 2021 at 6:07 | comment | added | quid | As far as taxes go "self employment" tax is just the employer half of the social security and Medicare payroll taxes. In a w2 employment situation your employer pays half and you pay the other half, when you're self employed you pay that whole amount. Whether you're a sole proprietor or pass through LLC, your taxes are no different. Corporate income is taxed twice and you'd avoid that by paying yourself a bonus of any remaining income before the tax year ended, so again, really your tax liability won't be different. | |
| Jan 23, 2021 at 5:55 | comment | added | quid | "Ficticious business name" is a term of art when dealing with DBAs and corporate names etc and wasn't directed at you. Any accountant in your area should be able to advise you, it has nothing to do with being a cash business. The only time I know cash causes a problem is for things like marijuana operations because the proceeds from the sale is federally illegal so the cash can't technically be deposited in to a bank. As long as you can freely deposit money there's nothing stopping you from getting advice from someone local to you, nothing you're asking about is out of the ordinary. | |
| Jan 23, 2021 at 5:43 | comment | added | Wonderingway | FIctitious, might be the wrong word It is a legal job; that I'm paying taxes on. I work with the same mindset as most small businesses. I have a schedule, strategies, pay fee/taxes, trying to grow as business & person. I was hoping to figure out how to stop being double taxed, if it worked my income bracket. Right now, I save 38% of my bring home money for taxes. Which is a lot, maybe I've been misinformed & everyone pays that much. | |
| Jan 23, 2021 at 5:37 | comment | added | Wonderingway | Your comment is very informative & I appreciate the time you put into it. I agree with most & its help shed some light on how to go about it. I've tried going to an accountant. Most, unfortunately do not have experience with all cash businesses. At least in my area, the most they've beeen able to help me with is filing my taxes as an independent contractor. The business side, has befuddled them. | |
| Jan 23, 2021 at 4:48 | history | edited | quid | CC BY-SA 4.0 |
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| Jan 23, 2021 at 4:35 | history | edited | quid | CC BY-SA 4.0 |
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| Jan 23, 2021 at 4:27 | comment | added | quid | @TTT ya you can issue yourself a w2 as a single member, and should be paying some quarterly estimated taxes but the tax returns would still be combined and the idea that I maybe didn't convey completely is that the point is to obfuscate the fact that you 100% own the corporation. | |
| Jan 23, 2021 at 0:57 | comment | added | TTT | Good answer. A few tweaks I'd make: 1.) Presumably Self Employment taxes should be paid now, so forming an S-Corp wouldn't increase the tax burden. In fact, if there's enough to take a reasonable salary and have some left, it would actually lessen the burden. Also, in theory, someone who isn't declaring as much as they make in cash, may not do so with a corporation either. 2.) Single member S-Corps can (and should?) issue a W-2. Currently that's what I'd be leaning towards. It also solves the double taxation problem. | |
| Jan 22, 2021 at 7:16 | history | edited | quid | CC BY-SA 4.0 |
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| Jan 22, 2021 at 7:11 | history | answered | quid | CC BY-SA 4.0 |