First of all. You probably don't need to form an LLC. That is a limited liability company. Look into forming an "S corporation." Cheaper and simpler. All your income tax liabilities will pass through as personal income tax (no corporate tax). If you run your business properly, most expenses are deductible pre-tax.
You have to think this through a little before you seek legal and accounting assistance. How much "income" do you need to show to qualify for home loan in the future, justify your lifestyle, etc.
You will have to pay estimated personal income taxes 4 times per year. Also the company (that means you) has to file forms and pay unemployment tax and income tax on your "salary." You must open a corporate bank account, etc.
You need to think of a company name - something general. You will have to pay annual fees to the state. If you live in California or New York - the fees will be higher and the paperwork worse than most states.
Finally, DO NOT go to a lawyer first. Go there last. Find an accountant that you can work with UNLESS YOU are willing to go through the effort to figure out tax requirements. The filings to incorporate are very simple. Your company's business purpose could be very general, like "to earn a profit under any legal means." You may not need an attorney.
Here is my suggestion for finding an attorney. Go find an a few young attorneys who do "pro bono" work advising college students or disenfranchised people (ACLU may have a list). Talk to them and just let them know you need to be discreet. Use your personal intuition to pick the best in ability and character. Remember, you are very likely to be a long term client.
Sorry for the long post, but I hope you found some of this helpful. BTW, I'm not an attorney or accountant, just a business person.
Al this is complicated, but you would be miles ahead in the long run if you choose to do this. Providing is a profitable business, be a good business woman and enjoy a prosperous future. I hope you become wealthy through hard work and good decisions.
hello guys, please help looking for a cpa/lawyer whom is sex worker friendly whom have experince deling with escorts!!!i would like to retire early and invest my money the right way
good luck finding a competent and/or compassionate one (seriously). you might also want to post this to the legal board as well. i've been told some "actual" lawyers lurk there!
and when you find the right one just tell him you're a "sexy bi girl" and i'm sure he'll reconsider his outlandish hourly rates! LOL
Do you have a company, with partners, etc? that you were wanting to incorporate? That's what an LLC is for. There is a lot of information on the Net about doing your own LLC (costs about $1000, average) but make sure that's what you are actually looking to do, and for what reason.
Or,is the business you were referring to your own, Independent Escort business?
yes i am a independent escort and i would like to buy a house,but i have no proof of income!!! so that is why i need help in regards to a LLC please help me!!!! i make good money but i can only put so much in the bank before they report to the IRS i am looking to retire in 4years!! i cannot buy anything without proof of income!!! so that is why i am looking for cpa/lawyer someone who has worked with escorts/strippers i did not want to retire penniless!!!
If all you're trying to do is have proof of income, most ladies just show that they do 'consulting' on their tax returns, or house cleaning or something. I think an LLC is 'over the top' for your needs. Just obtaining a business license is simple and cheap - I think I paid $35 for mine and the filings for dba were fast and easy down at the court house. But then, I have a legit internet business. Some ladies, because they are reporting large sums of income, get an Adult Entertainer's license, and then report that they do stripping or dancing, which would make more sense, and you don't have to have 'receipts' or 'invoices' for your sales or consulting and the money would be feasible. Regarding attorneys, etc, I have a suggestion that you would have to email me for: [email protected]
So, proof of income would be needing to establish some sort of business and getting a business license; I don't think you need a CPA for anything; but legal counsel is good (and I can help); but a CFP would be very wise (Certified Financial Planner). What area are you in?
If you are single member LLC you report your income on schedule C unless you elect to be taxed as a corporation. Why are you thinking LLC? Many of the tax benefits that you could only obtain by being a corporation are now available for the self employed.
There is no special tax bennies for a single member LLC. The only bennie is the corporate protection but that even fails here because you are offering a personal service.
Just report your income as an escort on schedule C of form 1040. Look for a female acountant that is a sole proprietor. I think you'll be in good hands there.
To add to what SuperDave said, you will, in most cases lose tax savings in an incorporation of any type. Most people/business', incorporate to protect assets, not for the tax savings.
If you feel that your liabilities are high enough to warrant incorporating, then a Limited Liability Corporation is probably the way to go. Just type LLC into Google, there are several websites that can help you for a fee. Or, if you want to do some of your own legwork, call the legal aid Dept. in the state where you want to incorp. and ask them for the forms to set up a LLC.
There are many ways to go "legit" without revealing your true occupation. Pick a business that is service oriented (Interior design, party planning, etc.) and tell your CPA that is your profession. You can then report most of your income and pay taxes. I highly recommend reporting some income because an awful lot of people are taken down by the IRS instead of LE (the legendary Al Capone was one).
You DO NOT have to report all your income to qualify for a home loan. Build up your credit score by using charge cards and paying them off every month. Your credit score (FICO score) is all encompassing in the mortage business. Protect it at all costs and don't EVER be late on a payment. You can then get a home loan were you simply tell the mortgage company how much money you make without providing any income documentation. You must be able to prove self employment for two years with a letter from your CPA or a business license. (also a good thing to have as a "party planner"!)
I admire your goals. Stick to your plan of saving and investing. I wish I could help you with the investing....but you would not be impressed with my recent picks. The only consistent winner in my portfolio has been real estate.
His advice is absolutely right. A corporation or an LLC will not help you in the slightest (and will end up costing you filing fees, etc.). As long as you choose to stay in the underground economy and not pay taxes, don't expect the aboveground economy to extend you credit. And whatever you do, don't believe those stupid ads for seminars promising "to teach you how to use a corporatin to get credit, buy a house, etc." -- all crap.
I've spent the last quarter century advising small businesses on issues like this; I think I know what I'm talking about.
...there is no place like your OWN home. Ocsir's surely right on about the importance of your credit rating.If owning a home is your primary goal then your credit rating will certainly "drive" the transaction down the right path...especially rate and fee wise. About the mortgage : The reduced documentation loan usually demands a greater credit rating and will require you to "state" your income to meet debt burden guidelines with the mortgage company.You don't have to verify income but provide a license or CPA letter to show that your business is still in existance and has been open at leat 2 years in most cases. Your credit score will also determine how much of a down payment will be required.The rate is then determined by a combination of your score,downpayment, and whether or not you can verify income and/or liquid assets.REMEMBER...YOU WILL PAY FOR THE FLEXIBILITY AND PRIVACY OF THESE TYPES OF MORTGAGES. Of course, there are complete NO Documentation loans(no income...no asset...excellent credit scores and good downpayments generally apply) or what I like to call the Tony Soprano loan...There is no paper trail for the back office as far as where your income came from...which is just right for Tony. I mean...lol...no one in his right mind is gonna ask Tony too many questions, except maybe his shrink
If you buy a home with cash and haven't filed tax returns or otherwise demonstrate how you obtained the funds, you are waving your gonads at a hungry, mean pitbull.
the IRS is the pitbull and your Nads are history...
Surely....buying any big ticket item with cash will raise the red flag... Conversely, the same goes with investing large sums of $ money...but there is always a happy medium and I think that's what the above provider is in search of.I'm sure it is not easy to leap from the "underground" economy to tax reporting in one full swoop.Ideally, we all want to pay our government a "fair" share of the taxes we owe.Many don't want to. What is a fair share?...That's what each and every self employed individual tries to answer come tax season and it follows through with them all year in the form of estimated quarterly payments. That being said, whatever one reports as income and expenses on one's tax return will be left with the net income that is verified come mortgage application time. Based on what one reports(2 year avge.) that will dictate one's elligibility for a full documentation loan.Report less(less taxes payed)...then less of a loan will be approved(can't have the cake and eat it too scenario) The last few years have brought about the ability to get higher loan amounts with reduced documentation loans and no documentation loans.IMO, the latter works better for the provider.My advise is to search lenders and put down as little as required. In like Klute! A disclaimer....lol...check with your CPA as each and every situation is different.
First of all. You probably don't need to form an LLC. That is a limited liability company. Look into forming an "S corporation." Cheaper and simpler. All your income tax liabilities will pass through as personal income tax (no corporate tax). If you run your business properly, most expenses are deductible pre-tax.
You have to think this through a little before you seek legal and accounting assistance. How much "income" do you need to show to qualify for home loan in the future, justify your lifestyle, etc.
You will have to pay estimated personal income taxes 4 times per year. Also the company (that means you) has to file forms and pay unemployment tax and income tax on your "salary." You must open a corporate bank account, etc.
You need to think of a company name - something general. You will have to pay annual fees to the state. If you live in California or New York - the fees will be higher and the paperwork worse than most states.
Finally, DO NOT go to a lawyer first. Go there last. Find an accountant that you can work with UNLESS YOU are willing to go through the effort to figure out tax requirements. The filings to incorporate are very simple. Your company's business purpose could be very general, like "to earn a profit under any legal means." You may not need an attorney.
Here is my suggestion for finding an attorney. Go find an a few young attorneys who do "pro bono" work advising college students or disenfranchised people (ACLU may have a list). Talk to them and just let them know you need to be discreet. Use your personal intuition to pick the best in ability and character. Remember, you are very likely to be a long term client.
Sorry for the long post, but I hope you found some of this helpful. BTW, I'm not an attorney or accountant, just a business person.
Al this is complicated, but you would be miles ahead in the long run if you choose to do this. Providing is a profitable business, be a good business woman and enjoy a prosperous future. I hope you become wealthy through hard work and good decisions.
I'm not so sure I would go to an accountant (or worse yet, ask some government monkey to tell you which forms you need to fill out) before or rather than seeing an attorney. An accountant should really be used to tally figures that you provide to him and to provide some financial analysis, if he's worth his salt (and most, unfortunately, are not). Accountants are neither trained nor licensed to practice law, which is arguably what you're asking them to do if you ask them about incorporation, tax planning and benefits, LLCCGGs ("BBBJTC, LLC"?), and all that hooey. Attorneys, however, are so trained. What's more, attorneys are your advocates, i.e., they are your alter ego when dealing with your money and life. How many times have you bitched at your accountant about your taxes being too high, only to hear him shrug in response, "Well, it is what it is. That'll be $300, please."? Attorneys are trained to protect you, not just count your beans.
If you're just looking to establish proof of income, then by all means look to an accountant; to that end, I commend you to anyone from Arthur Andersen. But if you're looking for tax planning, asset protection, and God forbid, criminal defense, starting with and limiting yourself to an accountant would be woefully inadequate.
Notwithstanding the foregoing, a dude in a bar stands up on his stool and yells at the top of his lungs, "Assholes! Assholes! All lawyers are assholes!" Another dude approaches him and says, "Excuse me, sir. I take great offense at your comment." "Why, are you a lawyer?"
You don't need to form an LLC. You can just file a Schedule C with your tax return. I am a CPA and have helped providers file their returns in the past. I can give you a reference if you like. email me if you would like some more help
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But if you're looking for tax planning, asset protection, and God forbid, criminal defense, starting with and limiting yourself to an accountant would be woefully inadequate.