Full-time & Freelance in CA
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- CincodeMayo
Does anyone on here have a full time job AND freelance on the side (specifically in CA)? Do you have to declare yourself as a business with the city/state (or become an LLC) if you're getting paid by a company?
I haven't done all that much freelance in the past few years, and the last time I did I got a government notice about not declaring income. Turned out I didn't make enough to declare myself anyway.
Anyone know what to do so I don't get screwed later?
- FredMcWoozy0
you don't need an LLC.
Call the IRS and they will give you a TAX id # you can use for freelance. No need to start a company.
- just make sure you save half of what you make for cali taxes.FredMcWoozy
- to be on the safe side.FredMcWoozy
- d_rek0
Yeah, can't speak for CA, but in MI anyone who doesn't 1099 you don't technically have to claim it on your taxes. However, if you get 1099'd, which basically means the monies your being paid are being reported ot the IRS, you would put about %30 away to be on the safe side.
But %50?... jesus christ.
- Cali has high taxes and if you save the 50% you won't surprised at the end of the yearFredMcWoozy
- be*FredMcWoozy
- Don't technically have to claim it? That's terrible advice. You have to claim ALL income after a certain amount (something around $600)Josev
- around $600)Josev
- CincodeMayo0
Ah, so if I get a tax ID from the IRS, I'll be billed later...come tax time I'm assuming?
- you won't be billed you will need to figure out what you owe.FredMcWoozy
- But yes, you only need the Tax IDFredMcWoozy
- Got it. Thanks.CincodeMayo
- nuggler0
I've got both freelance and full time work in CA. The extra tax I have to pay makes it a headache. On the other hand you can write off more expenses if you do it right, like a home office etc - in some cases (not mine). Having a business license might be required by your county. I used to have one when I did more freelance, but I can't be bothered to keep it paid, and I let my business name expire... and I closed my business bank account... nobody cares. It's good to have all those for writing off business expenses however.
Maybe there's some advantage to having a separate tax ID, but it's not required, you can just use your personal SS# as your tax id.
- True, true but getting the TAX ID makes it easier. And you can still write expenses off.FredMcWoozy
- CincodeMayo0
I won't have too many expenses so I'm not sure I need the whole business license thing. I just want to make sure I'm squared away come tax time. I'm located in Los Angeles in case anyone knows specifically what I need to do here in LA.
- CincodeMayo0
I've been Googling, and apparently Debra Bowen will tell me everything I need to know. Anyone know if this is the best place to go to figure this out?