I have been a provider about 6 months, and I have a safety deposit box stuffed full of cash. I want to make some investments (buying land, starting a trust fund for family, IRA, etc.) I can't do that when it's all in cash.  

Where do I even start? I've heard of ladies having an LLC cleaning service (hehehe cleaning the pipes). I can't seem to get much information out of providers I talk to.  

Anyway, bottom line...I need to deposit money into an actual bank account and start paying my fair share. I already have to be cautious about LE; I don't need Uncle Sam coming after me too. Which I'm pretty sure he would do if I start suddenly depositing 3x the amount I make in my 9-5.

I'm in Georgia if that makes a difference.

Thanks so much for your help,
FMK

It's only when you don't plan on paying taxes that it gets dicey.

First, as a tax payer myself, I thank you for your honesty.  It is wise as you point out also since the penalty for evading taxes is far worse than any penalty you could get for being a provider.

You should get the services of a local accountant to set things up.  Many people don't realize it but taxes have to be paid quarterly, not just once a year on April 15.  You need to send in estimated tax payments.  It's a bit of a rigmarole, but not too bad once you get the hang of it.

Inquire on your local board to get PMs with names of provider-friendly accountants in your area and select one to help you out.  It will be worth the expense.

Plenty of info on the various institutions and how and why they will close an account.  Many gals have had this discussion with me when this was happening....A LOT.  And it still is.

The OP should indeed ask on her local board about a friendly recommendation.  Once she has a discussion with someone local they can assist her in how best to make these cash deposits.

As well a local CPA can help her navigate on how to report her income properly.  Also...many many gals DO NOT file quarterly estimates.  Each situation is different, and as the OP discussed she has a W-2 (or she claimed a "regular" job) which may be sufficient in withholding to allow her to avoid the estimates.  As well, those gals that do need estimates I strongly suggest that this be done electronically.  Takes the "guesswork" out of making sure the payments have been made.  And eliminates any future underpayment issues, including penalty and interest thereon.

I will definitely ask about an accountant.

Wouldn't I need to be a small business owner or self-employed or something like that to be able to explain where the money is coming from? I was thinking personal chef, nanny or maid, something like that deals in cash. But, how do I start a business? I would need a business license?

Although you wouldn't tell your bank when opening the account that you are an escort.  I generally recommend entertainer with no further explanations.  

As for a license, unless you really are running a legit business that requires one, you don't get one as an escort.  There are some jurisdictions that do sell them...but I've yet to stumble on any gal that bought one.  

It's the amounts that would be deposited in cash that may trigger the institution to close an account.  Hence, if you chat with a nice CPA in Atlanta (I think that's where you said you are) they can give you some suggestions on how to NOT attract attention to yourself.  Different institutions have their own threshholds for investigating suspicious activity.  And that is indeed what cash deposits tend to do.  Now...many many businesses do cash deposits, but those tend to be recognized as "non-adult" businesses.  

BTW...you have already started a business.  Now you just need to learn how to properly manage the transactions.  And a nice CPA will be able to assist you in this process.  It really isn't all that difficult.

http://www.forbes.com/sites/stephendunn/2014/04/19/bank-deposits-structuring-and-asset-forfeitures/

Oh wow, well I'm definitely not rolling in the dough quite like that. My 9-5 pays almost all of my bills, so I am able to save quite a bit.  

I will remember that though if I ever have a killer month. Thank you.

-- Modified on 7/10/2014 7:01:28 PM

I asked admin to move this thread from legal to Atlanta, since Atlanta is the closest city to me.

I was hoping y'all could PM me with recommendations for accountants. I'm very clueless when it comes to finance. I've gotten conflicting messages in the past about how I should go about this. Just in need of a little guidance.

It's my understanding you can PM me by copying & pasting my alias into a new composed message.

Thanks so much for your help,
Miss Master Baiter

PM if you need more info

Do not make cash deposits exceeding $10,000 as that will cause the bank to file a currency transaction report on you with the Feds. It is a.good ideas to leave as much money in the account as possible with the exception of paying your bills. Moving the money out of the bank in large amounts after you make the deposits will draw attention. Its OK to move it to.a savings or CD in the bank. If your business is for example a cleaning service then look the part and don't' use an entertainer.  Hope this helps

A currency report to the Feds is no biggie as long as you are reporting your income, and it's a hell of a lot better than acting like you have something to hide by a "structuring" of smaller deposits.

Thanks you, Ginger. You're always so helpful.

Julia,

Thank you! I've been using Turbo Tax every year since I was 16 for my regular taxes. It's basically typing the info on my W-2 and answering questions I already know. Do you think it's just as easy for business taxes?

Hahaha! Definitely not making millions, but I'm not living in poverty anymore either.

HAhahah! It's true!

You need to be careful how you ask your advisors to help you with this.  A professional advising someone how to launder is 20 years, it's so steep because they want to get your accountant to rollover on you and discourage professional assistance.  This is really a drug thing, but the law is broader than that, so be careful how you word your questions, and help you advisor help you, don't give them full knowledge if you are up to something.

I would not lie on the return, be vague about your profession, but don't lie.  For example, entertainer, escort, companion, other acceptable euphemisms would be better than saying masseuse.  Your return preparer can't put things on your return that aren't true anyway.  If you lie on this, you put them in the position of getting into trouble.  The IRS doesn't care what you're up to, just that you pay, you can be vague here and not give anything away; after all who is to say you aren't really being paid for your time and great conversation.

Not sure why you need an LLC to do this.  An LLC is best for legal reasons, like getting sued.  Absent that, you don't want to attract more attention, and more paper work, and more professional fees.  You also probably don't want to keep a separate set of books and records and accounts for that.  Creating it and winding it up are just big hassles.  Self employed should be fine, and run it through schedule C on your 1040.  Don't get deduction happy, be very conservative and reasonable.

A stripper friend of mine got caught up in this, she was too aggressive on her return and pulled an audit.  They interview you in your home, and look around at your life style.  They compare your rent, car payments, credit card expenses, bank activity, and big ticket items (flat screen tvs, boats, wave runners, multiple vehicles, jewelry, etc) against your income that you have claimed.  If you live large, or have a large discrepancy, then you have some explaining to do.  Ultimately they got her to confess that she made more than she claimed and she had to pay an extra $30k.  It's all a negotiation, they don't know exactly, they guess, and you argue and then agree on a number that can be paid, and then they decide if you were evading taxes or just not inclined towards business.  In her case, being stupid and unorganized helped, they decided she just wasn't counting her tips well enough and made very bad estimates.  If you are meticulous and keep good records, it will reduce the amount of extra taxes you get charged in audit (assuming you aren't reporting it all), but it could also suggest you are evading if you aren't reporting it all.  You will have to decide how well you are going to report your income.