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Come on, stop with this slave mentality please. You can make invoices without funding any company and without the tax office getting in your hair. It's not ille
by carlosjobim 11mo ago
Come on, stop with this slave mentality please. You can make invoices without funding any company and without the tax office getting in your hair. It's not illegal to charge for your services and never has been. You can declare that income just fine, or skip it. The tax office won't bother you.
- SoftTalker 11mo agoThe IRS will definitely bother you if they figure out you have unreported income. Will they find out? Maybe not if it’s a few hundred or even a few thousand dollars. More than $10K? Then it gets more likely. If a client sends you a 1099 then they’ll certainly know.
- phendrenad2 11mo agoReporting income from freelancing is no more difficult than reporting income from your day job. So we're left still mystified what mbirth was talking about.
- digi59404 11mo agoThey’ll know because in the US and abroad the banks send the balances and transactions to the IRS. I get letters every year/6 months that I’m subject to additional withholding because they haven’t gotten any $$ but they show I have.
- SoftTalker 11mo agoAFAIK only transactions over $10k are reported, maybe different between personal and business accounts?
- salawat 11mo agoReporting to tax authorities by banks/financial institutions was bumped down to any receiving of an amount in excess of $600 during the Biden admin.
- SoftTalker 11mo agoAh yes, I had forgotten about that. That's for "business" transactions, IIRC. I wonder how they distinguish....
- salawat 11mo agoThey don't. It was targeted at screwing the poor rather than the rich.
- carlosjobim 11mo agoConsidering he is doing it for free, it won't be more than a few thousand dollars. And he can report it and pay tax on it if he pleases.
- digi59404 11mo agoThis isn’t true. The tax office will bother you, the client also will demand you have an actual company with liability insurance and more. There is a tremendous amount of legal and paperwork once you start accepting money and working with corps. It’s a nightmare.
- carlosjobim 11mo agoYou don't seem to understand the power balance here. The client is in no position to demand anything, since the article author can just tell them to scram, and they can solve their own problems. Working with corps is not a problem. Unless you have a slave mentality that is, and let them bully you and stomp all over you. If they have their wits with them, they will fully understand what negotiating position they are in, and not make unnecessary demands on the software creator.
- notpushkin 11mo agoI have a company in Estonia for cases like this. The amount of paperwork is nearly zero, the corps are happy they’re working with an actual company, and you can do things like holding money there (for business purchases) and paying no taxes in your home country (unless they have a CFC rule, notably US and Japan, in which case eh good luck).
- j16sdiz 11mo agoIt is easier in EU than in US.
- notpushkin 11mo agoIt depends. Sibling thread has some horror stories about Germany, for example. Estonia has been trying to get foreigners to open their businesses there for a while now: https://e-estonia.com/ https://e-estonia.com/ But I don’t think that helps US residents too much (ask your tax advisor about CFC rules; I have only a vague understanding that it’s a PITA).
- 11mo ago
- EliteGadget 11mo agoNot sure about elsewhere but ot took me 15 minutes to setup my LTD in the UK and I paid a monthly fee for accountancy which was about £100 and another yearly fee of about £100 for them to do my tax return (as I am lazy and didn't want to do it). Unless you are getting paid in cash or monero, HMRC will absolutely know if you are getting paid under the table.