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Thread: In the Midst of starting a new company ... could use your input!

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    Default In the Midst of starting a new company ... could use your input!

    Hi! I have been dancing on and off again for about five years. I was currently offered a position with a brand new company that will be able to create legitimate paychecks for dancers that would like to avoid the hassle of reporting taxes as an independent contrator or entertainer at the end of the year, or for people that need proof of income. This would be very beneficial to those that are looking to be able to establish credit, rent an apartment, buy a house, or anything else that requires showing proof of employment and income.

    This company is completely legal. We have already brought this before the IRS and have recieved approval to be able to provide this service. As a dancer, I have often wondered if there was some type of service like this somewhere because w-2's are so much easier to deal with than keeping track of income and expenses throughout the year and completing taxes that way. I am very excited to be part of this endeavor.

    We are hoping to have everything completely ready to go by the beginning of the new year, if not sooner. I was wondering if any of you could give me some feedback on your thoughts regarding this business. I can only come up with positive reasons as to why this company will succeed, but we are trying to come up with reasons as to why people would be hesitant or not want to use this service.

    I know this hasn't covered all the details of what this actually entails, but I would be more than happy to discuss it further if you have any questions. But at this point, I am really seeking constructive criticism.

    Thanks in advance for any responses you can give!
    Last edited by DancingQN; 12-03-2007 at 04:32 PM.

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    Default Re: In the Midst of starting a new company ... could use your input!

    I don't think filing as an independent contractor/sole proprietor is difficult at all. Almost everyone at my club uses the same accountant who is a dancer's mom and they all say it is easy. I go to a different guy and it is super easy there too.
    Is this for private dancing only?

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    Default Re: In the Midst of starting a new company ... could use your input!

    No, it wouldn't necessarily be just for private dancing. It could really extend to anybody that gets paid under the table, but would rather be able to recieve a weekly paycheck than do taxes at the end of the year.

    I have done my own taxes and for many reasons would rather be able to report to a company weekly and get a check with the taxes taken out than have to keep records of everything and then have to go through all my records at the end of the year. Plus, it wouldn't have to say that you are an exotic dancer. I have gone through a divorce so discretion is a must for me.

    It would basically be that the dancer reports how much they made in a particular week, then we would turn that amount into a paycheck with the taxes taken out. Right now we would only be able to serve the New England region, but if it goes well, we will be looking to expand.
    Last edited by DancingQN; 12-03-2007 at 04:31 PM.

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    Default Re: In the Midst of starting a new company ... could use your input!

    ^^^ if the dancer will be treated as a W2 'employee' by the IRS, who pays the 'employer's share' of SSI and medicare tax ? That's a big detail !!! If dancers accepting your W2 'employee' paycheck service will lose their business expense tax deductions, as well as still being required to pay both the 'employer' and 'employee' share of SSI and medicare tax, using your service would carry a very 'hefty' cost !

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    Default Re: In the Midst of starting a new company ... could use your input!

    My sentiments mirror Melonie's. More information is needed.

    Besides, a successful stripper who is actually reporting her income with some accuracy is likely to be paying quarterly estimated taxes, which will require her to track her income and expenses daily. How difficult is it to then work with a private CPA to make sure that deductions are maximized and tax laws are being adhered to?

    Also, how do you plan to make money out of this? I'll BET the the IRS is tickled pink over this plan though, lol!

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    Default Re: In the Midst of starting a new company ... could use your input!

    Ha, you can get the same thing through a payroll service. However, it still doesn't guarantee that all tips are reported because you would still have to report them to the company.

    If the company is a front as an employer, it won't fool anyone. And if you W2, I would like to see how that is handled for workman's comp. etc. With employees in multiple states it has to withhold state and local taxes, file taxes in every state it has employees in, register as a foreign corporation, etc.

    Lots of luck.

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    Default Re: In the Midst of starting a new company ... could use your input!

    I echo Melanie and Katrine. As much as I hated the "Independant Contractor" hassles, it was a hell of a lot better than being someone's employee!! As an employee, I wouldn't be able to write off 1/5 of what I bought to make money. As an IC, I was able to write off everything that I used for work from make-up, to gowns, to shoes, etc.

    And, I would be interested to know how you will handle the employer/employee taxes, as well. And, also what is your fee for doing this? We need more information before we can really give any feedback.

    So far, though, it definitely sounds like something I would NOT do.

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    Default Re: In the Midst of starting a new company ... could use your input!

    This is simply a general contractor. Many industries have them from construction to computer. Contractors hiring contractors.

    If all the general contractor is bringing to the table is payroll and accounting services, then they really are bringing no more value than an accountant.

    General contractors at least find the business for the sub-contractors.

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    Default Re: In the Midst of starting a new company ... could use your input!

    if this is a general contractor scenario, then their mention of W2 income doesn't fit.

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    Default Re: In the Midst of starting a new company ... could use your input!

    This doesn't sound like a general contractor, and I seriously doubt the clubs are going to foot the payroll bill. I think this is something the dancers will voluntarily have to agree to, correct?

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

    Quote Originally Posted by Mia M
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    Default Re: In the Midst of starting a new company ... could use your input!

    Thanks for all the feedback. We are going to be putting together an e-packet over the next few weeks that will be able to address all these questions. If you can think of anything else you would want to know or seems questionable, please let me know! I will let you know when this will be available.

    Thanks again!

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