Full-time & Freelance?
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- CincodeMayo
So I'm employed full-time but I've decided to take on some extra work, sell some photos on Getty, make some extra dough, etc. My main concern is taxes...the last time I attempted to do freelance the state of CA wanted me to declare myself as a business but it turns out I didn't make enough. Big hassle though. So to avoid this hassle, how do you full-timers who freelance do it? Should I start pay the dough and start an LLC? Any other cheap and simple options? I don't don't want the headache come tax season next year.
- robotron3k0
start LLC, you will use it in the long run, you can do lot's of write off and you can purchase wholesale if you ever want to.
- CincodeMayo0
Cool, sounds good. And LLC is the easiest/best to do right? Even for an individual?
- partners would prob. want to do LLC, because it's "Limted", you should do an Inc. like me.robotron3k
- they are both the same amount of effort.robotron3k
- Thanks Robotron. I'll check it out.CincodeMayo
- gramme0
LLC provides all the protection needed for a small business owner. I think it varies state by state, but you don't need to become an Inc. unless your billings get deep into six figures. It costs more to become Inc., but you get more protection. Those safeguards are unnecessary for most one-person creative businesses.
BTW you don't have to have LLC in your name. You can register a DBA for like 7 bucks. That's what I did. The LLC part will only appear on bank statements and tax stuff.
- CincodeMayo0
Oh, cool. So a DBA should cover me unless I start billing a lot? I'll check that out. Thanks!
- heavyt0
go with the DBA. It doesnt offer the same protections as an LLC, but you most likely arent going to take advantage of those anyway.
- Ladylike0
Only form an LLC if you do more than, say, 20k of freelance a year. I do a little freelance and am full time, but not enough to even bother with paperwork.
I talked to a lot of lawyer friends who said LLC/DBA wasn't worth the time/money.
I just have a GREAT tax guy at the end of the year who does all my paperwork. And have it taken out at the end of the year. Less work than LLC etc. It's really not necessary.
DBA might be better option. Don't know enough.
- CincodeMayo0
Yeah, I'm thinking DBA's the way to go. Not planning on really make a ton off of this stuff for the time being anyway.
Ladylike - so you don't do either? And it's all good? Or you did a DBA?