1st Gen Lunchtable Thread - General Discussion

yeah my wife has a guy that she raves about, but he's really expensive for self-employed freelancers. She owns a couple Pilates studios so it works out to be pretty cheap for her

 

I feel like you wanted that to rhyme but it didn't

 

I don't know a lot about it but from what I can gather there are a lot more freebies to take advantage of when the taxes are in relation to a business

 

I don't know much about it either except that especially in CA small businesses need all the help they can get, the taxes and fees you have to pay to the state every year is insane when you rent out a space and operate as a business

 

https://youtu.be/jHoT-mVCKn0

 

I'm surprised your state hasn't squeezed them all out of business yet. California only works for companies that don't sell a physical product that can be technically registered in Delaware instead haha. Small business in Cali could make tons more in any other state

 

i don't listen to tupac

 

Pretty sure that's Puffed Father

 

As an LLC I have to pay annual minimum dues of $998 per year. I’m looking at going as an S Corporation instead since they’re taxed differently.

 

yeah when she tells me about all the crap she has to pay to the state just to meet requirements it gives me anxiety and it isn't even my business...she's trying to open up her second studio right now and the legal fees and permit crap has taken almost 6 months now and they signed the lease at least that long ago, can't open until all the fees and paperwork are in order. It's nuts

 

News flash



It doesnt matter.

 

You'll have far more as you sell and you pay your independent contractors.

 

What about snoooooooooooooop dogg

 

I got by for awhile as just operating as a self-employed individual under my own name so I didn't have to pay any fees like that, but last year the city of LA caught onto that and started charging self-employed/contract employees a special tax as well and it goes back retroactively up to 6 years. Luckily for most of that time I lived in the city of Pasadena which has it's own set of rules so I only had to pay a portion of what they said I owed.

 

It makes total sense. That $998 charge is the minimum for the state.

I think Nevada is like, what, $40?

My business model will never work outside California. The concentration of cars to people here are astronomical. Finding the cars that I get these horns from would be much harder in any other state.

 

I don’t really know how to go about paying taxes on my gross annual income as a sole proprietor. I heard the cutoff for being untaxed is $12k or something? I really don’t know.

 

I don't know off the top of my head, and it varies from county to county/city to city.

It's all just money grabbing bullshit...makes me happy to be working for a corporation so I don't have to worry about all that crap now. But if you become successful enough with your own company you can eventually rise above that crap, but CA makes it damn difficult to do so.

 

I feel your pain, I would never even bother where you live. My Dad has started two companies in built out one of them in a building in roughly that same time frame and they're a tad more involved than a fitness studio being office spaces with all the associated tech and furniture. That was a nightmare in it's own right, I cannot imagine being a business that is customer facing and rather bare bones and taking 6 months of rent payment without profit or at least revenue flow.

 

I thought he was Snoop Jaguar now

 

I would not assume that there's a cutoff for that...I made that mistake my first year of being a freelancer and I got hit with a HUGE back-owed tax bill almost 3 years later. I freaked out and went to H&R Block and they were actually super helpful...I can't remember the exact amount but the IRS said I owed close to $15k with the penalties and H&R helped me bring it down to about $4k.

Don't ever assume you can get away without paying taxes lol, unless you're a drug kingpin or a too-big-to-fail bank.

Best thing to do would be to hit up an accountant or income tax agency and talk to them about it, they'll know what you need to do