dj2bucs
Was kind of curious to see how alot of other people are doing there financials. Do you claim ur earnings or do they just pay cash. Alot of the places I do just give cash then I woory about it at the end of the year. Just curious to see how other people do it. I know alot of people have other jobs so they can work around it. But I do this as my only job as of right now. KNOCK ON WOOD.LOL
geposted Mon 06 Jun 11 @ 8:44 pm
pskeens
Legally any income you make has to be filed on income taxes. Cash is less traceable than Checks is why many people do not report any cash as income and have to file taxes on it.
Some people file this as a Hobby, however even a hobby has to be filed if one makes income from it.
Some people file this as a Hobby, however even a hobby has to be filed if one makes income from it.
geposted Mon 06 Jun 11 @ 8:58 pm
Tear Em 'Up
In today's economy, governments are looking to increase revenue. Claim the income, avoid IRS trouble....
geposted Mon 06 Jun 11 @ 9:31 pm
A Man and His Music
They read forums, also.
geposted Mon 06 Jun 11 @ 9:55 pm
jbart19
And tap your phones, and filter e-mails ;)
Personally I think with as easy as it is to set up an LLC in most states that is the best way to go. Take a weekend, fill out the paperwork, I think in my state it cost $50 and took about 2 hours to fill out all the paper work to get my tax IDs and set up my corporation. Then go to your bank and have them set you up a business account that your clients can make their payments out to. Also get a separate bank card linked to that account and only use it for business expenses. This will make it easier to do your taxes at the end of the year and make it easier to keep track of all your write offs - mileage, equipment, memberships, etc. Overt he course of a year you might spend an extra 20 -40 hours keeping track of this stuff but once it is set up it will make your life much easier. The penalties for tax fraud or the nightmare of an audit without documentation is not something you want to deal with.
Even if you only make a couple grand a year DJ'ing it will be well worth it.
Personally I think with as easy as it is to set up an LLC in most states that is the best way to go. Take a weekend, fill out the paperwork, I think in my state it cost $50 and took about 2 hours to fill out all the paper work to get my tax IDs and set up my corporation. Then go to your bank and have them set you up a business account that your clients can make their payments out to. Also get a separate bank card linked to that account and only use it for business expenses. This will make it easier to do your taxes at the end of the year and make it easier to keep track of all your write offs - mileage, equipment, memberships, etc. Overt he course of a year you might spend an extra 20 -40 hours keeping track of this stuff but once it is set up it will make your life much easier. The penalties for tax fraud or the nightmare of an audit without documentation is not something you want to deal with.
Even if you only make a couple grand a year DJ'ing it will be well worth it.
geposted Mon 06 Jun 11 @ 10:29 pm
DJ_SVO
And remember they think everything is THEIRS ;)
geposted Mon 06 Jun 11 @ 11:11 pm
dj2bucs
Yep I agree with you guys I do it as one job so I don't wanna risk anything I always tell everyone that pays me cash that I will be claiming it at the end of the year so don't forget.
geposted Mon 06 Jun 11 @ 11:53 pm