3 ms·

Hmmm.. Is there a market for that?

by eb0la 5y ago

nickjj 5y ago
> Hmmm.. Is there a market for that? I don't think it's as bad as the parent comment makes it out to be to accept payments. You don't need to register a company, you can act as a sole proprietor. This requires no paper work, fees or filing anything. You would need a bank account but most folks already have one, your personal checking account would work. You can grab and tweak a pre-made privacy policy in less than an hour if you decide to include one. I'm also pretty sure (I'm not an accountant) the first year you're self employed you won't get penalized for not paying quarterly taxes. Of course you need to still pay taxes in April, but you can deal with that then. Even if that wasn't true, the worst case scenario is you pay a fee for not filing every quarter. If you accepted payments and were making tons of money hiring an accountant wouldn't be an issue and if you were making close to nothing then you wouldn't have any fees since you have to be taxed $1,000 in the year to be on the hook for paying estimated taxes per quarter. The last point of writing code stands true tho. You would need to implement some type of payment accepting feature into your app. Fortunately accepting monthly or annual payments is fairly generic. Once you've implemented this in any app you can mostly drop it into another app without a huge amount of effort. It would mainly come down to little tweaks and making the UI match your app.
- tpetry 5y ago
  Don‘t forget that hn has international users. The rules you describe don‘t have to be the same for everyone. And there are a lot of countries with much bureaucracy.
- simmons 5y ago
  > I'm also pretty sure (I'm not an accountant) the first year you're self employed you won't get penalized for not paying quarterly taxes. I'm only chiming in here since I've become somewhat of a reluctant expert on estimated taxes over the years (assuming we're talking about the U.S. here; apologies to those outside the U.S.). And it happens to be fresh on my mind, since I tackled my Q1 taxes yesterday. ;) I've never heard anything about an exception for one's first self-employed year, so be careful with this. (But hey, the tax code is huge and complex, so I may just not know about it.) Although if you also have withholding from a W-2 job, it may cover you. Generally, everyone is supposed to pay a certain amount of estimated taxes throughout the year, self-employed or not. But for most people this will happen automatically through W-2 withholding. I suppose it could be a rational move to not worry about estimated taxes the first year, focus on your business instead, and eat any penalties/interest. (You wouldn't be the first to do this.) Or you could just make a guess on what you might owe, and send some money in advance of each estimated tax deadline. If you underestimate, I suppose the penalties/interest would be a lot less than if you avoided it altogether. If you overestimate, you get a refund (or if you choose, a carry-forward to the following year). Or you can do what I did 15 years ago, and spend a weekend studying IRS documents to understand how it all works, set up spreadsheets to calculate estimated taxes using the annualized method, and perform some minimal maintenance on it each year thereafter.

Hmmm.. Is there a market for that?

by eb0la 5y ago

Hmmm.. Is there a market for that?

> Hmmm.. Is there a market for that? I don't think it's as bad as the parent comment makes it out to be to accept payments. You don't need to register a company, you can act as a sole proprietor. This requires no paper work, fees or filing anything. You would need a bank account but most folks already have one, your personal checking account would work. You can grab and tweak a pre-made privacy policy in less than an hour if you decide to include one. I'm also pretty sure (I'm not an accountant) the first year you're self employed you won't get penalized for not paying quarterly taxes. Of course you need to still pay taxes in April, but you can deal with that then. Even if that wasn't true, the worst case scenario is you pay a fee for not filing every quarter. If you accepted payments and were making tons of money hiring an accountant wouldn't be an issue and if you were making close to nothing then you wouldn't have any fees since you have to be taxed $1,000 in the year to be on the hook for paying estimated taxes per quarter. The last point of writing code stands true tho. You would need to implement some type of payment accepting feature into your app. Fortunately accepting monthly or annual payments is fairly generic. Once you've implemented this in any app you can mostly drop it into another app without a huge amount of effort. It would mainly come down to little tweaks and making the UI match your app.

tpetry 5y ago
Don‘t forget that hn has international users. The rules you describe don‘t have to be the same for everyone. And there are a lot of countries with much bureaucracy.
simmons 5y ago
> I'm also pretty sure (I'm not an accountant) the first year you're self employed you won't get penalized for not paying quarterly taxes. I'm only chiming in here since I've become somewhat of a reluctant expert on estimated taxes over the years (assuming we're talking about the U.S. here; apologies to those outside the U.S.). And it happens to be fresh on my mind, since I tackled my Q1 taxes yesterday. ;) I've never heard anything about an exception for one's first self-employed year, so be careful with this. (But hey, the tax code is huge and complex, so I may just not know about it.) Although if you also have withholding from a W-2 job, it may cover you. Generally, everyone is supposed to pay a certain amount of estimated taxes throughout the year, self-employed or not. But for most people this will happen automatically through W-2 withholding. I suppose it could be a rational move to not worry about estimated taxes the first year, focus on your business instead, and eat any penalties/interest. (You wouldn't be the first to do this.) Or you could just make a guess on what you might owe, and send some money in advance of each estimated tax deadline. If you underestimate, I suppose the penalties/interest would be a lot less than if you avoided it altogether. If you overestimate, you get a refund (or if you choose, a carry-forward to the following year). Or you can do what I did 15 years ago, and spend a weekend studying IRS documents to understand how it all works, set up spreadsheets to calculate estimated taxes using the annualized method, and perform some minimal maintenance on it each year thereafter.