You should discuss this with a tax professional. You may have other taxes to deal with such as sale and service taxes. It is not only income tax the gov't can nail you on.
You do not and should not go the incorporation route or you end up with a whole other set of issues such as employee and payroll with withholding, etc. Also, as your service is personal service the company would be a personal service corp with associated problems. Just no reason but plenty of downsides and additional costs.
I agree, you do not want to ignore it nor not keep books and records. I defended an IRS substituted return years ago filed as to a provider and they assessed gross revenues calculated on 7 days a week, 24 hours of work based on 1 hour appointments with 15 minutes between for cleanup based on an adverts they had she was available 7 days a week and others she was available 24 hours. None of her friends would come forward to testify that she had a limit of 4 persons per day and only worked 5 days a ween but was flexible as to what days during the week (hence the 7 days availability and hours (hence the 24 hours). She kept not records nor expense receipts. Outcome was not good but under the circumstances the best that could be reasonably expected.
Hey every one!
What is the write way and steps to file taxes if you work as a Provider? Do you receive tax returns? How do you state the company name working in an Agency or as an Independent??
Please help!
The one thing you don't want to do is not pay your taxes. The feds got Al Capone for tax evasion, not selling illegal alcohol or running illegal gambling or whatever else the mob did back in Chicago in the 1920's. Remember the Untouchables?
Ask other providers how they do it. I would think you would be self-employed Adult Entertainer. Maybe ask a CPA also?
b-
Im no CPA, but all i can say is if you work as an independent, you'll have to set up your own business that you can officially register, then set up a personal corporation so you can write off work related expenses. Plus you'll have to keep legit financial records of course as a 1099 Independent contractor, so all your income is going to have to be accountable. Im sure if the IRS sees 'Entertainement services' as the category of your business, they're going to scrutinize it a bit closer, so you really don't want to get into trouble. Just remember if you want to get legit tax filing involved, its going to open a can of worms and you'll have to have all your i's dotted and t's crossed.
Perhaps you should talk to some other providers and get ideas from them?
It's not necessary to incorporate in order to deduct business expenses, although the guys running the "incorporate with us for less" commercials certainly like to imply that.
I've done taxes for a couple providers, along with lots of people working "normal" jobs. It's really a game of risk management. As others have said, you don't want to "F" with the IRS, because they almost always win.
There is absolutly nothing wrong with being a "disregarded entity" when it comes to the IRS. Parsonally, I like to be as disregarded as possible when it comes to the IRS.
Unless you have liabilty issues, which I cannot imagine any provider bieng able to solve through Incorporation, I can't think of any reason for a provider to incorporate. Contrary to what has been written on the legal board, there is no savings on payroll taxes if you elect C status and pay yourself a salary. On the contrary you are now both employer and employee and your total combined Social Security contribution will be 15.3% as opposed to self employment tax which is partially deductible resulting in a net tax of 14.13%
Just like in legal matters, get a professional. don't rely on advice that you get on an escort board, mine included
Well the first thing to do would be spell "write" the "RIGHT" way......
You can WRITE your taxes on paper.
You can do your taxes the RIGHT way.
There is a difference
You should discuss this with a tax professional. You may have other taxes to deal with such as sale and service taxes. It is not only income tax the gov't can nail you on.
You do not and should not go the incorporation route or you end up with a whole other set of issues such as employee and payroll with withholding, etc. Also, as your service is personal service the company would be a personal service corp with associated problems. Just no reason but plenty of downsides and additional costs.
I agree, you do not want to ignore it nor not keep books and records. I defended an IRS substituted return years ago filed as to a provider and they assessed gross revenues calculated on 7 days a week, 24 hours of work based on 1 hour appointments with 15 minutes between for cleanup based on an adverts they had she was available 7 days a week and others she was available 24 hours. None of her friends would come forward to testify that she had a limit of 4 persons per day and only worked 5 days a ween but was flexible as to what days during the week (hence the 7 days availability and hours (hence the 24 hours). She kept not records nor expense receipts. Outcome was not good but under the circumstances the best that could be reasonably expected.
We cant answer that here-
tax laws vary from state to state-