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Last edited by dancingdiva1; 10-28-2013 at 01:34 PM.





That is really weird that they have an LLC set up. Huh.
There are tonnnnnnnns of threads on this but the short answer is that I wouldn't worry about it. I've had pay stubs from a club and held licenses in 2 cities, and they have never affected my background checks. I've worked for state government and have a fingerprint clearance card to allow me to work in the medical field and with kids. I'm pre-med myself. Laurisa might chime in, she's an EMT.
"People jack off with the left hand and point with the right."
"You can check out any time you like, but you can never leave."





Having the opportunity to become an LLC partner will have some obvious advantage over becoming an 'employee'. Those advantages will involve a lower effective tax rate ( since it sounds like 100% of the LLC payouts will be in the form of 'profits' i.e. 'dividends'), potential 'freedom' from SR 'employee' rules etc. But at the same time there would be disadvantages i.e. an 'employee' dancer would receive worker's comp insurance and unemployment insurance coverage, a 30+ hour per week 'employee' dancer would ( supposedly ) receive either 'employer' provided health insurance or employer subsidized Public Health Exchange based health insurance etc. ... which an LLC partner will NOT receive.
In terms of paperwork, as an 'employee' dancer you will receive a W2 with your own name, address and ss# ... with your employer being listed as SR. That fact will very likely be picked up on by the credit reporting bureaus, meaning that it's highly probable that every prospective future employer, lender, landlord etc. who checks your credit rating will see Spearmint Rhino listed as your ( previous ) employer. As an LLC partner, you will receive a K1 with your own name, address and ss# ... with the LLC name listed. Granted that this LLC's name can be chosen to be something 'innocent sounding', which upon 'first glance' by a prospective future straight job employer, lender, landlord etc. may not immediately shout 'stripper'. However, the LLC partner 'ownership' will be a matter of public record, thus any thorough background check by a future employer is very likely to discover what sort of business the LLC is actually involved in.
In terms of risk factors, 'employee' status pretty well guarantees that your weekly paychecks will actually include all of the money you have earned, less withheld taxes of course. On the other hand, the 'profits' a.k.a. 'dividends' paid out by an LLC are subject to all sorts of potential subtractions, from LLC accountant's fees to LLC legal fees to LLC purchases of capital equipment ( like computers ). I would also assume that this LLC will be structured with the club being the 'master partner' which in turn means that 'junior partner' dancers won't have a 'vote' in how the LLC is run.
If you plan on going into a medical field that requires a professional license, in my personal opinion you would do well to stay clear of creating a paper trail of direct 'employment' by Spearmint Rhino. State professional licensing boards have a thing for 'unprofessional conduct' ... and 'stripping' is definitely considered to be 'unprofessional conduct'. At least the 'innocent sounding' name of an LLC wouldn't shout 'this girl was a stripper' in the same way that tax returns, W2's, credit reports etc. blatantly listing Spearmint Rhino as your ( previous ) employer would !!!
The LLC may still not stand up to an in depth background check, though. Unlike a 'personal' LLC, this Spearmint Rhino 'branch' LLC is going to involve millions of dollars of cash flow, dozens of partnership 'owners', etc. ... all of which makes it easier for future searches to identify.
To the best of my knowledge, NO strip club operates an LLC partnership which includes dancers as junior partners. This business structure is typically used by service industries, medical practices / law firms, investment partnerships etc. However, in today's evolving strip club environment, with courts and gov't agencies pushing for 'employee' status for dancers, with clubowners being faced with not only lawsuits by former dancers but also new regulatory burdens / costs ( i.e. upcoming ObamaCare mandates ), the LLC approach could provide an interesting alternative. But there are several questions which would need to be answered before I'd consider signing on as an LLC partner.
- will junior partner dancers be paid a 'salary' plus a 'dividend', or 100% 'dividend' ( also known as S-Corp tax treatment ) ???
- what sort of operating costs will be assessed by the LLC which will 'subtract' from actual dancer earnings ?
- is the LLC authorized to take on debt, for which the junior partner dancers could potentially held ( partially ) responsible to repay ?
- can the junior partner dancers 'run' their business expenses through the LLC ( i.e. health insurance premiums, dance outfit purchases etc. ) to achieve pre-tax treatment ?
Last edited by Melonie; 07-06-2013 at 07:41 AM.

Does anyone know how this would affect taxes being part of spearmint rhino llc? I signed a contract with them and they said I would receive a k-1 form for taxes. I've been working for rhino for a few months, and just received a letter which states my profits for the 2nd quarter of 2015 (which was way less than I actually made), and then I received a check for 6% of those profits. At my last club, they didn't report anything or send out a 1099 so I just kept track of my earnings and paid taxes on that. I've been keeping track of my earnings but I'm confused if there will be additional taxes due? I know the club keeps track of dances and private rooms. When I first started, one of the managers said they would report about 5$ for every 20$ they track. I want to make sure I'm paying the right amount of estimated taxes and that I won't owe a lot more than I expect come tax time.
If anyone knows I'd appreciate the help.![]()
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