Is it possible to file earnings from sex work (camming, stripping, escorting, etc.) as a corporate entity?
I am not asking HOW to go about becoming incorporated (I know the process) but if it's an allowable way to report income from sex work.





Is it possible to file earnings from sex work (camming, stripping, escorting, etc.) as a corporate entity?
I am not asking HOW to go about becoming incorporated (I know the process) but if it's an allowable way to report income from sex work.
I have been wondering this too, I would think so because we are our own "business" so why couldn't we? Sorry I'm not much help but Im wondering too..





Yes. I'm not sure how but my tax guy told me not to. Not sure why. He said i'd pay more?










I imagine he said you would pay more because there are annual feels to pay for being incorporated.
I considered opening a corporation (most likely an "S" corporation) down in PR because it has a lower corporate tax rate: I have relatives, attorney, and CPA down there to help me with the legalities, so I have that aspect already taken care, in case if it's possible.
But then again, what I need to know is if it's possible to report earnings from adult work under a corporate entity and not as an individual.
If you can get the club to pay the corp instead of you, this could work. Basically, the club would contract for your corp to provide services and pay the corp. As a corp, it then pay s you as an employee . You receive your income from the "S" and declare it as executive or whatever as your occupation.
The costs for doing a sub S is not that much, I think I had 4 or 5 corps at one time. Not a big deal. A couple of extra steps to make it look nice. BUT, the club has to pay the corp and not you. Get an attorney to be your registered agent to keep your name off of corp. Be prepared to make the employee withholding deposits for payroll. Easy to use quickbooks to do the accounting side of things for all of the 1040s, etc.





^Clubs don't pay dancers, but dancers pay the club to conduct their business at the club, for dancers are independent contractors. In other words, as a dancer I'm self employed: same with being a cam girl (sites take about 60%) or any other sex worker attached to an agent.
Shouldn't it be that the earnings be reported to the corporation as if I was the employee offering consultations?
lol, hope urs was good too girl!
And yea I think if your caming, you would just set it up w the site to pay your s corp but if your dancing IDK why you couldn't pay yourself, I read you can do all of that in an s corp but different states have different laws. You would pay yourself by putting $ in bank and then pay yourself a "salary" to your personal account per month and whatever is left in your s corp, you will save big on tax money. Again state by state is different, I read you can also open one up in delaware and not have to live in delaware, lots of big companies do this but Im not sure about fees on the delaware one, only the state I was in at the time.





I think yo qualify as an s corp you have to have a certain amount of employees. I'm not 100% though.





You can set up a corporation for any legal purpose. Then, you can make the sub-chapter S election and treat the corporation as, what the IRS calls a pass through entity, and pay taxes on the corporations profits at your tax rate. No minimum limit on the number of employees. It can be zero. The service will want to know when you expect to have employees, but you don't need to ever have them. No more than 100 shareholders and only one class of stock. Shareholders must be U.S. Citizens and must be natural persons. No corporate shareholders.
Normally, distributions from an S corporation are not subject to FICA taxes. However, the IRS and state revenue agencies my re-characterize distributions to paid to shareholder-employees as wages if the shareholder-employees are not paid a reasonable wage for the services they perform in their positions within the company.
HTH
Z
As usual, this is not tax advice. You may not rely on this posting to avoid a penalty from the IRS or state revenue agency. This is offered as information only. Consult an accountant or lawyer for advice specific to your situation.

To follow up on Zofia's comment above, the general nature of a corporation is not to obtain any tax advantage, but rather to limit the shareholder's exposure to any potential legal liability or legal claim. In fact, a corporation can sometimes increase one's tax obligation. For example, a C-corporation results in double taxation: taxation of the corporation's earnings and subsequent taxation of the shareholders' dividends received from the corporation. However, if the C-corporation sells a faulty product or service that results in injury or death, then usually the C-corporation entity is liable instead of the shareholders (e.g. GM's faulty ignition switches).
Zofia raises a great point about sub-chapter S-Corporations that were designed to pass through the earnings to the shareholders to avoid the double taxation described above. However, this does not really give the shareholder for these types of corporations any type of tax advantage over someone who is not incorporated as a sub-chapter S-Corporation; the shareholder still has to pay taxes on the S-Corp's earnings that are passed through to the shareholder. Instead, the primary purpose of a sub-chapter S-Corporation is to provide a shield to legal liabilities or claims like a C-Corporation while avoiding the C-Corporation's double taxation.
If one truly wants to set up a sub-chapter S-Corporation, though, then one should consult with a tax attorney licensed to practice law in the jurisdiction within which the person resides and not rely on these posts for any legal advice.





^ I can see why my accountant said it wouldn't benefit me and would cost me more in the end. How the hell can dancers have shareholders?





This has been pretty useful. I will be in contact with the people I mentioned before for more specific details.
Bookmarks