Paying Taxes?

[Freddie]

Incorporate in Barbados--> 3% tax
Incorporate in US state--->Dividends issued from Barbados = living expense and taxable
Fly to Barbados once a month, withdraw $9,999 not a dollar more.

Fly home. Keep your mouth shut and get a damn good accountant.

This sounds like seriously bad advice. For starters that monthly trip will leave a trail. I doubt you will be escaping questions if they find the $9,999 on you on your return. And if you are going offshore which for US citizens (which I am not) is like a red flag to the IRS bull then why go somewhere where you pay 3% instead of an annual flat rate?

 

[Vivica]

This sounds like seriously bad advice. For starters that monthly trip will leave a trail. I doubt you will be escaping questions if they find the $9,999 on you on your return. And if you are going offshore which for US citizens (which I am not) is like a red flag to the IRS bull then why go somewhere where you pay 3% instead of an annual flat rate?

I agree, very bad idea... Not only is tax avoidance against the law, but so is splitting up the transaction into < $10,000 amounts just to avoid detection.

What is ?structuring? and what should I do about it?

Often, when cash is offered as payment for an item, the reason for paying in cash might seem suspicious to the seller. For example, the buyer might be reluctant to provide the identifying information required for completing the 8300 form. Or, the buyer might ask to split the invoice in order to avoid the filing requirement. This activity is known as ?structuring.? The payer is arranging the payment in smaller amounts of cash for the sole purpose of avoiding the cash- reporting requirement. Structuring is against the law.

Many financial institutions now report smaller amounts just because of structuring.

 

[TheInternetHustler]

my parents are lawyers(I am 16, so I still live w/ them...), they help me out

I got to pay that fucking 15% self employment tax(along with income tax etc.), so much money, it makes me sad.

 

[Diabolik]

You should have them help you put together some forms that internet marketers would use (contracts, agreements, royalty agreements, etc...) and sell those in a package...

my parents are lawyers(I am 16, so I still live w/ them...), they help me out

I got to pay that fucking 15% self employment tax(along with income tax etc.), so much money, it makes me sad.

 

[ximscreamingx]

Talk to Uptownbulker.. He is very versed in the field.

 

[Axelian]

So if I make money from EPN will they send me a letter in the mail to pay the taxes? I am not very "business and tax" knowledgeable. What if I create a new account for another epn, should i choose an LLC?

 

[BabyBoy06]

I know the 15.3% self-employment tax, but what the hell is the "income tax" you referred to? I mean, I know what it is but what's the difference between the 2?

 

[damhoov]

I heard there is no laws in the usa requiring you to pay taxes??

I heard the income tax is voluntary tax, saw a video about it

I have seen many videos like this http://www.youtube.com/watch?v=VVzkceT521A

and then I hear some lawyer beat it in court and didn't have to pay taxes... also some famous black guy in usa is charged with tax fraud but he refused to pay because no law requires it...anyone know about this??

 

[wargamer6]

I also heard that the Easter bunny is real.

 

[ximscreamingx]

Are you referring to Wesley Snipes?

I heard there is no laws in the usa requiring you to pay taxes??

I heard the income tax is voluntary tax, saw a video about it

I have seen many videos like this http://www.youtube.com/watch?v=VVzkceT521A

and then I hear some lawyer beat it in court and didn't have to pay taxes... also some famous black guy in usa is charged with tax fraud but he refused to pay because no law requires it...anyone know about this??

 

[Hugo]

The whole argument on the "you don't have to pay taxes in the usa" thing is a total misnomer. Technically speaking, if you are a w-2'ed employee here in the states, then you supposedly don't have to pay taxes. I don't have the knowledge, background or desire to argue this point.

But it doesn't really matter in our case anyway. We are all 1099'ed at the end of the year by the affiliate networks. Each and every one of us is a "business owner", or at the very least a sole proprietor (bad bad idea to have no legal protection). We will all have to pay taxes to some degree.

A good tax lawyer/accountant can help you save some money. A great money launderer can help you save more. Your choice.

Hugo

btw- Wesley Snipes was played for a fool. And then convicted of failing to file a tax return. And then made to pay the past due amounts + interest and penalties.

 

[damhoov]

Are you referring to Wesley Snipes?

ya wesley snipes lol the famous black guy


I assume it ended badly for him? Well is there a law that says you have to pay or are americans just such friendly people they like to give money away when they don't have too

K but one guy BEAT the fed and he was a lawyer dodging for years... your right HUGO, it is pointless when at the end of the day only real option is pay up or get in jail.... BUT if thats not the law, man thats one messed up empire america is...

his name is tom cryer

http://www.youtube.com/results?search_query=tom+cryer&search_type=

 

[newmanhia]

The income tax cannot be constitutional and is voluntary; however, here is a simple analogy. The mafia offers to protect your business for 25% of your earnings, and if you don't pay up either your building gets burned down or you get beaten near to death. Sure the mafia is doing something illegal, but do you still pay?

In regards to self employment tax, there is an easy fix for that. IRS Form 4361 Religious exemption. Social security is unbiblical, and if you are an atheist, you better get religious real fast to save some $$$. Right off the bat that is 15.3%.

So lets say you make 80,000$ a year. Form an s-corp and pay yourself wages of 40K and dividends of 40K.
The dividends are currently taxed at 15% although if Marxist Obongo gets into office that will probably change. This comes to 6,000$ and regular single filing (without boatloads of exemptions) on the 40K of wages is $5598.75 which comes to a total of 11,598.75$.

So you are paying in TOTAL federal about 14.5% in taxes on 80,000$ and this is being completely "legit" (not that the IRS or income tax is actually legitimate).

Figure out a way to avoid paying income tax at the state level, which I will leave up to you.

If you make more than 120K a year, get yourself some professional help and start an offshore corporation. Don't throw money down the toilet. American assets aren't at all safe, seeing as the government can seize them whenever they please.

 

[catspurley]

The income tax cannot be constitutional and is voluntary; however, here is a simple analogy. The mafia offers to protect your business for 25% of your earnings, and if you don't pay up either your building gets burned down or you get beaten near to death. Sure the mafia is doing something illegal, but do you still pay?

In regards to self employment tax, there is an easy fix for that. IRS Form 4361 Religious exemption. Social security is unbiblical, and if you are an atheist, you better get religious real fast to save some $$$. Right off the bat that is 15.3%.

So lets say you make 80,000$ a year. Form an s-corp and pay yourself wages of 40K and dividends of 40K.
The dividends are currently taxed at 15% although if Marxist Obongo gets into office that will probably change. This comes to 6,000$ and regular single filing (without boatloads of exemptions) on the 40K of wages is $5598.75 which comes to a total of 11,598.75$.

So you are paying in TOTAL federal about 14.5% in taxes on 80,000$ and this is being completely "legit" (not that the IRS or income tax is actually legitimate).

Figure out a way to avoid paying income tax at the state level, which I will leave up to you.

If you make more than 120K a year, get yourself some professional help and start an offshore corporation. Don't throw money down the toilet. American assets aren't at all safe, seeing as the government can seize them whenever they please.

Well, that was one of the most interesting first posts I've ever seen. Thanks for that insight.

If anyone here can recommend a good tax accountant or tax attorney please PM me. I have the "problem" this year of making a whole lot more than I ever have in the past and my current accountant just doesn't get the whole "internet marketing" thing, which is really just marketing, which made me realize I need a new guy to help me with this tax stuff...

 

[newmanhia]

Well, that was one of the most interesting first posts I've ever seen. Thanks for that insight.

If anyone here can recommend a good tax accountant or tax attorney please PM me. I have the "problem" this year of making a whole lot more than I ever have in the past and my current accountant just doesn't get the whole "internet marketing" thing, which is really just marketing, which made me realize I need a new guy to help me with this tax stuff...

Thanks for the compliment. It is better to say nothing at all than to post junk. I have learned so much on this forum in just a few days. Social security is a ripoff. Firstly the money won't be there when I retire, and secondly, with inflation you probably take out less money then you put in. The number on the IOU's is irrelevant, what matters is the purchasing power.

I do my own taxes, seeing as the books are fairly simple to keep with this type of business. A regular retail or service business can be incredibly complex to manage.

There is a learning curve, and I probably spent about 50 hours learning the ropes. It isn't a bad idea to pay an accountant a little bit just to review the books and sign as a preparer to reduce your liability.

If in doubt definitely get a decent tax accountant and a good attorney to boot. It helps to have some wealthier connections (not incredibly wealthy but middle-upper to upper class) so that you know through the grapevine, who is a good accountant to hire. The same goes for attorneys.
Once you get those first connections you enter into a series of networks and circles that just expand with time.

 

[cashsalute]

I'm going to pay someone, I assume its difficult to do, so I'd rather just pay

 

[themagician]

Do any of you guys do your own taxes, or do you pay someone to do it for you?

'...I haven't paid income taxes for over twenty years, since I left the U.K.

I was self-employed in the U.K. and couldn't get out of paying taxes or VAT (Value Added Tax) through my businesses.

Once I moved to Spain and now Thailand, as far as the authorities are concerned, I am retired. With a few shekels in the bank, I can prove I have enough to live off and so I am not bothered by the authorities. Thai people think all foreigners are millionaires, even if they are only 18-years-old. I am a bit more than that and so they do not doubt that one can retire at a young age.

As all of my business interests, at the moment, are Internet-based, I get away with it. However, I am about to open two more businesses and, while the marketing will be mainly done over the Internet, I have to put myself about a bit including magazine and television promotion and so will probably have to pay a token amount. Thankfully here, it is very small even though it is corporate tax paid through my Thai company.

It is vital you take care of the outgoings, even if you are making heaps of money and that includes paying the legal minimum amount of tax.

I might not sound very patriotic and I still love the country of my birth, but not what the politicians have done to it. When they listen to the likes of me, and I have always been a grafter and still work a minimum 18 hours per day, and spend the money I 'would' pay in taxes accordingly, then I will be happy to pay. Until then, and it's never going to happen...Screw them!

Rambo forum member will know what I am talking about. He's still in the U.K. which is now unrecognisable from when I was growing up.

I would take a personal pride in castrating Tony Blair and all his cronies, even though he is no longer Prime Minister. Systematically, he destroyed Great Britain and deserves the same fate as Saddam Hussein.

Apologies for the rant.

themagician

 

[vapid2323]

All great info, I am about to find an accountant. Can anyone give an idea howmuch someone will charge for creating a corp?

Thank you

 

[wargamer6]

It varies from state to state too.

 

[vapid2323]

Ok I will do that, thank you!