Posted on 08/18/2022 12:16:21 PM PDT by Eccl 10:2
Judging from the advice given here .... well, .... I think you proved MY point already.
How about this? Forget this idea. Start another business that is an ELF. Easy Lucrative and Fun.
I have an Accounting degree but my advice is always “Keep it as simple as possible”. I can’t imagine there would be many expenses for something like this. One of the most targeted business by the IRS is a small business because people all have great ideas about how they are going to make money and write everything off. I was doing data entry for a small business and they were trying to write off cartons of cigarettes as “gas and oil” because they got them as Sheetz. They were using the cigarettes as “pay” to a housekeeper. Or make their man cave a “home office”.
I did a Servicemark for our DBA,
It was very convoluted, took months, but I got it in CA State.
Legalzoom probably woulda been worth it in that case.
That's some good creative accounting.
Here in Huntington Beach it is about the same for a business license.
In Los Angeles, if you file on time there is an exemption for $100K or under, you don’t anything, and an Entertainment Industry Exemption of $300K or under.
No reason to do an S-corp for a new business unless you need to be incorporated.
Do an S-corp election on an LLC.
No Corp drama, all the benefits.
Get one of those armed IRS jobs while working undercover for Project Veritas....
It would surprise you how many people consider their credit card bill to be a receipt.
I's sure the new 87K armed IRS agents will set them straight.
You’ll need a good accountant.
Consider doing it under your social security number. Your client can provide a 1099. If you are 1099’d, remember that you are liable for both sides of your social security and medicare and for your federal withholding.
you have mail
If you are providing accounting advice or services for compensation to anyone other than your employer, then you probably need to be licensed as a certified public accountant. If you are only providing bookkeeping services, then probably not. If you are providing CPA services, then you would probably form a subchapter S professional corporation (PC) or professional limited liability company (PLLC). I say “probably” because I don’t know the specific laws in NC, but most states allow PC and PLLC business formations, all states require CPAs to be licensed, and some states require non-employee bookkeepers to be licensed.
Tell your father to become a democrat and get elected President.
Then you can make any business you want and will make millions.
Not legal advice, not an attorney... but if you’re not needing liablity protection, you just keep track of expenses and income and file taxes on a Schedule C as a sole proprietor. For example, I do printing brokering and have no overhead to speak of.... the factory invoices me, I invoice my customer, and on the Schedule C it is basically just showing the net profit. If I were to advertise or get business cards printed for myself, for example, those would be listed as marketing expenses and deducted from the profit. But if you do need a little separation/liability protection so nobody can come after your assets, you should set up an entity. An LLC can also file taxes on Schedule C, and you can do that under your SSN or get a FEIN. When you incorporate, that’s a whole different level of reporting and tracking, and for that I say have an attorney help you.
You and your friend should consider that carefully. The IRS has guidelines/tests to determine what qualifies someone as a 1099 contractor.
One of them is if (you) the contractor offers, advertises or performs work for other clients - if you don’t and you are only providing services to this one business, you may not be able to be classified as an independent contractor.
Another is the amount of control the hiring company has over (you) the contractor. Does the hiring company determine how work will be performed, when and where? Are you the contractor paid by the hour with all out-of-pocket expenses paid and the business providing all tools to perform the job, or do you have the opportunity to incur a business loss.
https://www.nolo.com/legal-encyclopedia/employees-vs-independent-contractors.html
Exactly!
Yep, DemocRATS with Gun's, Will Kill, & Travel.
Inquiring minds want to know, just how deductible is gun and bullet's?
Oop's, Never mind, I forgot the IRS is supplying both.
The LLC is the way to go as it offers protection against personal assets.
Bad advice. One wrong consultation resulting in a lawsuit and the person could lose everything.
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