Re: Financial Advice for Dancers from a Financial Advisor
Quote:
Originally Posted by
Zofia
No, you are not contributing to the deficit. Over payments are not counted as income or tax receipts, just as refunds are not treated as expenses. An over payment of taxes constitutes a loan to the US Treasury, nothing more.
HTH
Z
I'm pretty sure she's talking about getting returns when your income is high enough to require you to pay taxes, rather than receive refunds. Not that anyone who doesn't make enough money to pay taxes is a problem, just that those cheating the system are contributing to a budget deficit when they could be helping to shrink said deficit.
Re: Financial Advice for Dancers from a Financial Advisor
Hmm, I wonder why this thread is no longer popular. Especially considering all the global economic chaos that has been developing since 2008 and since late 2009 when the most recent post was made.
This financial advice seems extremely useful (and difficult to follow as the author wisely comments). Those tips for strips can stack and go really quickly.
Think of how many millions of boomers in America are now stuck in the 'now what?' position? Granny dance anyone? For $10 she'll break her hip on you...
Re: Financial Advice for Dancers from a Financial Advisor
Re: Financial Advice for Dancers from a Financial Advisor
actually, it's because our 'Financial Advisor' is no longer around to provide 'professional' financial advice for free.
Re: Financial Advice for Dancers from a Financial Advisor
^I asked if you would be interested in posting a beginners guide to investing etc, when you didn't respond I searched elsewhere. Feel free to start one up if you believe that you can offer better advice.
Re: Financial Advice for Dancers from a Financial Advisor
Melonie,
I have not ever seen a "loophole" there are only tax strategies and planning oppurtunities. One of the best advantages for "regular" people are, in my opinion, are being self - employed and retirement plans like Self Employed Plans. If you were to have a group of investors pooling your money other tax savings oppurtunities may become available.
Re: Financial Advice for Dancers from a Financial Advisor
Quote:
If you were to have a group of investors pooling your money other tax savings oppurtunities may become available.
I assume that you are referring to things like buying tax exempt state muni bonds ( carrying a $50k price tag ), buying a partnership in a tax credit producing 'green energy' company etc. ???
Re: Financial Advice for Dancers from a Financial Advisor
Basically you are correct, in terms of tax savings oil wells are a nice tax investments, low income housing projects or historic building rehabilitation projects. I am not aware of any public vehicle that uses New Markets tax credits but I'm sure that's coming. There are some private transactions involving the sale of rental housing that might be suitable. There are number of things that could be done between United States based individuals and individuals resident in another country such as Canada or England.
Re: Financial Advice for Dancers from a Financial Advisor
Question: Should I get a business license and sole proprietorship rather than reporting as freelance income? My club doesn't do any 1099s or even keep records as far as I can tell. Is there any benefit to having a business license other than being able to pay at the end of the year versus quarterly?
Re: Financial Advice for Dancers from a Financial Advisor
^^^ yes a business license allows you are able to open a dedicated business bank account ... and thus avoid co-mingling of business finances with personal finances. This can be extremely important where 'credibility' with the IRS, potential lenders and landlords etc. are concerned. This will also deflect a good amount of bank teller 'suspicions' as well as the potential filing of bank 'suspicious activity' reports regarding large / regular cash deposits you are likely to be making in the future.
However having a business license won't remove the requirement to make quarterly estimated tax payments to the IRS and the PA state tax agency.
Going this route will also put you in good stead if and when your strip club is forced to start issuing 1099's. The 'exemption' given to small businesses ( with either 50+ or 100 employees+ ) to comply with the new ACA law expired at the end of last year. Thus the fact that your club didn't issue 1099's for dancer income earned during 2014 doesn't necessarily mean that the club won't be forced by their accountants to issue 1099's for dancer income earned in 2015.
Re: Financial Advice for Dancers from a Financial Advisor
Quote:
Originally Posted by
Melonie
^^^ yes a business license allows you are able to open a dedicated business bank account ... and thus avoid co-mingling of business finances with personal finances. This can be extremely important where 'credibility' with the IRS, potential lenders and landlords etc. are concerned. This will also deflect a good amount of bank teller 'suspicions' as well as the potential filing of bank 'suspicious activity' reports regarding large / regular cash deposits you are likely to be making in the future.
However having a business license won't remove the requirement to make quarterly estimated tax payments to the IRS and the PA state tax agency.
Going this route will also put you in good stead if and when your strip club is forced to start issuing 1099's. The 'exemption' given to small businesses ( with either 50+ or 100 employees+ ) to comply with the new ACA law expired at the end of last year. Thus the fact that your club didn't issue 1099's for dancer income earned during 2014 doesn't necessarily mean that the club won't be forced by their accountants to issue 1099's for dancer income earned in 2015.
I already own a graphic design business (although I haven't yet renewed my license for this year), and it's a sole proprietorship. I'm pretty sure that in both PA and Delaware (where I'm living and where my business is registered), having a sole proprietorship prevents you from having to pay quarterly. Although I didn't even earn enough last year with my business to qualify either way.
Do you think I should get a separate business license as a sole proprietor just for stripping? Should I attempt to file my dancing work under my design/marketing business as some kind of event hosting thing? I guess I should probably hire a lawyer or business consultant to give me advice on these things.
And I kind of doubt my club will ever issue 1099s. They seem to just claim everyone as self-employed people renting the space, rather than employees. The way they do things is somewhat shifty even though they're a pretty large club and I'm almost certain they have more than 100 employees.
Thank you so much!! I'm sorry if I'm bothering you with a million questions. This thread is very generous of you!
Re: Financial Advice for Dancers from a Financial Advisor
If you have access to an accountant, his 'professional' advice is likely to be better than anything we 'amateurs' can offer.
Regarding the registered sole proprietor business you have already established, you should be able to 'lump together' your dancing activities along with other free-lance activities under the same business heading. There's no point in having to pay multiple fees and keep multiple sets of books to establish and maintain multiple businesses ... well, as long as the total amount of money involved isn't in the millions, and the business activities arguably share some sort of commonality, anyhow.
As to PA and DE being able to 'supersede' federal tax law on quarterlies, that doesn't sound right. But, in any case, if you don't file federal quarterlies the worst that would happen is some interest charges and under-withholding penalties being assessed by the IRS.
As to your particular club's non-issuance of 1099's, if this club indeed has over 100 total 'workers' and is somewhat 'shifty' in the way they handle dancer moneys, I would at least be prepared for the possibility that 1099's will be issued next spring for 2015 dancer payouts. The reason, of course, is that this club is large enough to potentially attract IRS attention toward the club's own tax liabilities ... and without the club issuing 1099's the club itself could be held liable for paying income taxes on customer moneys it actually 'passed through' to dancers ( customer credit card charges, funny money purchases etc. ).
Re: Financial Advice for Dancers from a Financial Advisor
It seems like the best strategy in this strange economic climate is to diversify your skill set and be able to do several things fairly well, so that if your main industry develops problems you will have something to fall back on.
In the baby boomer days it seems like the main focus was to get through a 4 year college studying one specific thing, and then for the rest of your life that would be the thing you would do: a doctor, a carpenter, a plumber, etc. Now there are such sudden changes in the economic climate so abruptly that 'putting all your eggs in one basket' seems to be problematic. It seems like the positive thing about the adult industry is that there are so many forms and variations of it that a person can try out of fall back on. but im not sure.