What category do you guys use to classify expenses like outsourcing? Things like odesk, fiverr, bst on wf? Basically anyone you pay that's not an employee and that you can't really 1099, or can you? Any help, advice, or ridicule welcome. Thanks.
tax question
- Thread starter ryanmiller1122
- Start date
If you spend over $600 with anyone than you're supposed to 1099 them.
If you file a schedule-c than there is no dedicated category for outsourcing so you create a subcategory. At least that is what my accountant did. She used Drake accounting software.
Yes you are supposed to 1099 any individual you pay over #600 to. If they have llc or inc behind their name your cool most of the time though. Foreigns (non-USA) you are supposed to ask for their TIN but if they don't respond their isn't much you can do. I'm a CPA but this isnt paid advice and I'm drunk on $2 margaritas.
And I'd call it outside services or contract labor.
I use Drake to sling taxes too btw.
If you are schedule C and make money at internet bizness pm me and I tell you mad tax secrets.
And I'd call it outside services or contract labor.
I use Drake to sling taxes too btw.
If you are schedule C and make money at internet bizness pm me and I tell you mad tax secrets.
Thanks for the advice so far. Mainly curious about how it works with foreigners and how to account for payments through a third party such as odesk.
Never heard of drake, how does it compare to quickbooks?
Sent from my DROID4 using Tapatalk 2
Never heard of drake, how does it compare to quickbooks?
Sent from my DROID4 using Tapatalk 2
It doesn't matter how you receive your income, it's all claimed the same no matter who sends it or how you get it.
Drake is more for accountants and filing returns.
Dump Quickbooks and get WaveAccounting. Free Online Accounting Software for Small Business - Wave Accounting
They're offshore based too which is an added benefit. Completely free.
To JVHorn88
First off - mad respect for everything you've posted on the forums about taxes - you know your shit and do it in a very precise yet entertaining way.
Can't send PM cause I never really post much, but had a quick question that I'm almost ashamed to ask cause it's newb tax question. So....
Are there any advantage tax-wise if you form an IM LLC in a state other than which you live? I live in WI but reigstered my LLC in Texas. Total Revenue for the year is a like $200,000, with profit about 30% of that. Not sure why I thought this would be a good idea, probably I was drunk. Since sole-member LLCs are just taxed as individual income, I basically just pay state taxes for the state I'm living in, correct? I have a tax guy doing my shit, but he has yet to inspire my confidence in his understanding of internet related LLCs. maybe it's his 65-year old man mustache and typing with his index fingers...
First off - mad respect for everything you've posted on the forums about taxes - you know your shit and do it in a very precise yet entertaining way.
Can't send PM cause I never really post much, but had a quick question that I'm almost ashamed to ask cause it's newb tax question. So....
Are there any advantage tax-wise if you form an IM LLC in a state other than which you live? I live in WI but reigstered my LLC in Texas. Total Revenue for the year is a like $200,000, with profit about 30% of that. Not sure why I thought this would be a good idea, probably I was drunk. Since sole-member LLCs are just taxed as individual income, I basically just pay state taxes for the state I'm living in, correct? I have a tax guy doing my shit, but he has yet to inspire my confidence in his understanding of internet related LLCs. maybe it's his 65-year old man mustache and typing with his index fingers...
Pretty sure you have to register as a foreign entity in your state and pay your state income taxes anyway. I may be wrong, but I think setting up something like a Wyoming LLC is more for privacy reasons than taxes. I'm sure there is a way around anything though...