Firstly, is escorting a legal business in NM? (looked up your profile & BTW, you seem really hot, but we'll leave my attraction to you for another day ) I am not trying to speak in jest, but when you say that you plan to declare your taxes, under what business model, plan, premise & licenses are you considering this? Plus, be very careful as to whom (professionals such as Attys, CPAs, FAs, FCs, etc) you divulge your real business to, because if it is considered as an illegal activity, then you may not be entitled to the privacy laws that otherwise protect your relationship with that professional.

You may want to look into getting a Message therapist, Healing Hand Practitioner license from an accredited school. It is not cheap and it actually requires 500-1000 hours of credits that you need to gain. However, it is a legitimate business and actually not a fall-back career path, if you should be done with escorting. However, be very cautious that once the State has your business information (by way of licenses, etc), you are exposed in one form or another.

Lastly, you mentioned that you have never filed taxes as your ex did not want to work. If by an ex you mean an ex-husband, then surely he must have filed some joint Federal (and State) tax returns with your name on it! If he signed for you without your knowledge & consent, then that's totally another matter!

P.S. I'm neither a lawyer nor I study law. Just a layman with access to Internet CS~

-- Modified on 11/6/2010 11:23:00 AM

Just call yourself a personal consultant... As others have said, the IRS isn't going to look into theta source of your income, Huey just want to known what you earned and what you need to pay.  Do remember that you will need to file as a self employed business owner which means you have to pay self employment tax as well.

Ad it might allow other write offs like costume and wardrobe...

It's too bad there's not an "CPA review" board similar to this one. Here's a bunch of information that I hope you find useful.

Keep in mind there is a big difference between a CPA, a tax attorney, and a financial consultant. The last thing anyone needs is a CPA. A CPA may understand accounting, but rarely do they understand tax LAW. The tax attorneys that I know are also former IRS special agents, which is a HUGE plus, so make sure you ask what their background is.

I just finished a 3 week trial against the IRS on behalf of my client. I was amazed at how much information the IRS keeps about you. There are some things that are red flags to the IRS, one of the biggest is a large increase in income. That will usually lead to an audit first, but not all the time.

I'm not recommending flying under the radar, but be careful. Make sure all of your spending adds up to what you're reporting. If you have nice cars, homes, boats, etc but only reporting $30,000 a year in income, you're going to get flagged. The best thing to do (assuming your making gobs of money) is to look at creating corporations. Let's face it, I would probably classify an escort as a business consultant. You're selling time at an hourly rate. You're not swinging from a poll. Your travel expenses are still deductible. If you have multiple places to live, then create a property company as well.

The most important thing is once you start reporting, do so accurately and timely. Failure to pay is a misdemeanor, but it carries a one year/$250,000 fine. The feds have a 90% conviction rate.

Find someone you can trust. Ask for referrals. I've had some really crappy accountants that have cost me $$$$ over the years.

Its a very easy process and if this is your only source of income you will need proof of it for large purchases: cars, loans, mortgage. If you have never done your own taxes I suggest you do find a professional, feel free to email me for more info [email protected] Whore & CPA

Posted By: ldesti

Now, I am sure this question has been asked before and answered..  but I can't for the life of me find it..  I checked the newbie manual and used the search options...  Maybe I'm missing something...

Girls, what financial tools do you use to manage your work?  Books?  Accountants?  Business Advisors?  Men can feel free to chime in as well.  I know a lot of you are good with money...  among other things...      

I've decided it's time to be a big girl and pay my taxes and plan for a business.  I have a few degrees..  might as well put them to use at some point, haha.

I honestly never really worked before.. my ex just didn't want me to.  So this will be the first year I'm filing taxes.  I've taken accounting, but we never learned how to file for this.  After perusing Amazon, I came across the title "The Business Side to Escorting II" which has a few reviews and looks alright but I'm not sure if it looks magical enough to pay $899...  haha.  So..  any favorite, useful books?

I'm also looking into getting a financial consultant.  If any girls have one..  how did you find yours?

Any advise would be greatly appreciated.

XOXO,
Destiny

-- Modified on 11/6/2010 2:22:01 PM