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Freelancing and Taxes
Posted: Mon Apr 11, 2005 7:03 pm
by James M.
I was thinking about finally doing something with my knowledge of php since I need a job for the summer, and I find it annoying to know programming languages and such just to work at some fast food restaurant/department store/etc. The only problem I find with freelancing is taxes; what do I do so I don't get screwed when it come time to file my taxes? I live in the US by the way.
Posted: Tue Apr 12, 2005 5:42 am
by shiznatix
just get all your money through paypal and pretend like nothing happened.
Posted: Tue Apr 12, 2005 5:53 am
by CoderGoblin
First of all I know nothing about US taxes, not even sure of UK anymore...
With things like this surely it would be worthwhile to contact a "Tax advisor" of some sort so you can get an "official" position. If you have details from an official source and things go wrong you can always have "evidence" that you were trying to do things correctly (If you save all the correspondance that is).
Posted: Tue Apr 12, 2005 11:43 am
by James M.
CoderGoblin wrote:First of all I know nothing about US taxes, not even sure of UK anymore...
With things like this surely it would be worthwhile to contact a "Tax advisor" of some sort so you can get an "official" position. If you have details from an official source and things go wrong you can always have "evidence" that you were trying to do things correctly (If you save all the correspondance that is).
I think I'll do that, better to be safe then sorry.
Posted: Tue Apr 12, 2005 5:15 pm
by hawleyjr
You'll need to set up a corporation. If its just you working. Then look into doing a sole proprietorship.
http://www.irs.gov/businesses/small/art ... 02,00.html
After you do that, I recommend setting up an escrow account with a local bank to store your tax $$$ in.
Posted: Tue Apr 12, 2005 8:18 pm
by James M.
So freelancers are sole proprietors huh. Where do I go to file for sole proprietorship? And should I get a lawyer to help me out?
Posted: Tue Apr 12, 2005 8:27 pm
by hawleyjr
A sole proprietorship is an unincorporated business that is owned by one individual.
Freelancing doesn't have to be a sole proprietorship. It can be a handful of business types.
Check out:
http://www.irs.gov/businesses/small/art ... 36,00.html
Lawers are great if you can afford them....
Posted: Tue Apr 12, 2005 8:41 pm
by James M.
Thanks for the info, checking it out as I type. I know sole proprietorship isn't just freelancing, just didn't know freelancing was a sole proprietroship. Thanks again for the info.
Posted: Tue Apr 12, 2005 8:53 pm
by neophyte

You could always be like this
guy and not pay taxes. Although I wouldn't reccomend it.

I pay my dues. Render to Caesar....
Posted: Tue Apr 12, 2005 9:39 pm
by evilmonkey
neophyte wrote:
You could always be like this
guy and not pay taxes. Although I wouldn't reccomend it.

I pay my dues. Render to Caesar....
I don't get it...is it a U.S. inside joke?
Posted: Tue Apr 12, 2005 9:56 pm
by infolock
yeah, the joke is the guy the link is about.. i don't think anyone in their right mind would vote for that idiot.
Posted: Wed Apr 13, 2005 6:57 am
by neophyte
evilmonkey wrote:neophyte wrote:
You could always be like this
guy and not pay taxes. Although I wouldn't reccomend it.

I pay my dues. Render to Caesar....
I don't get it...is it a <span style='color:blue' title='ignorance is bliss'>you</span>.S. inside joke?
I was just citing an example of someone who doesn't pay taxes or have drivers license has what not to do. Not that I have anything against Libertarians in general. Ron Paul was a Libertarian candidate for president once. But oops we're waxing political. I think that's forbidden here. So I'll stop now. April 15 coming up!