I've lived in the Bahamas for several years. Good broadband connection from a tolerant ISP, no income taxes, and US income that is visible to the IRS is subject to an $84K foreign earned income allowance (ie tax deduction). Also sun, sea, sand and tourists in bikinis. If you make all your income from the Internet living in the Bahamas is a good idea. Sadly, I'm back in the US now for family and business reasons, and missing the sunshine already.
Paying Taxes?
- Thread starter Essential Clix
- Start date
OK, here's what a tax lawyer friend told me about income tax being voluntary: "Of course income tax is not voluntary. However, if you can convince a jury that you really truly BELIEVE that it is voluntary, then you won't be sent to jail for tax fraud, you'll just have to pay the back taxes and penalties and legal fees."
applebutton
Newbie
- Apr 23, 2008
- 32
- 4
There have been people who have fought the constitutionality of having an income tax and won. There are also those who did it and lost and were sentenced to YEARS in prison. You're putting your life in the hands of a jury of peers that in all likelihood pays income tax themselves.
Uncle Kracker
Registered Member
- Sep 15, 2008
- 89
- 186
Could just be a difference of definition but 'tax avoidance' generally means using legal means to lower your tax bill. Tax evasion is is illegal and criminal.In between the two is the gray area where you take your chances.
As far as the 'don't have to pay taxes on income types' they'll always end up paying dearly in the end. If you are a high profile person (famous, no tax seminars, no tax books, etc.) you will be dealt with publicly and pay in the end.
Code:
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=47027Irwin Schiff was the last one I remember, who ever happens to be the next no tax crusader will end up the same way. The stakes are way to high to have it end any other way.
BlackSmack
Junior Member
- Jul 13, 2008
- 148
- 47
May years ago, when I first started online I didn't expect to make as much as I did my first 6 months. I owed more than 10k in taxes that year because I wasn't incorporated. I incorporated and I literally cut my taxes in half overnight without doing anything other than incorporating.
A corp is the way to go, though if you keep up with your quarterly estimated taxes you can manage everything pretty easy. You may/probably will owe some when you file, but it will be way less if you are making payments quarterly.
However, if you want to pay less in the end, incorporate or at least get a dba/fbn going so you can have payments made to you in the biz name.
Also you may want to check with your local city/county to see about any additional taxes for doing business in your area and if any certificates/licenses are needed to operate.
If you are not making a huge amount (under 100-110K per year) then you can still take home a nice chunk of change with just a dba/fbn. It will all depend on your total take home and how much of the accounting/financial aspects you can manage yourself. Oh and let's not forget about what state you live in can have an effect on your business taxes as well.
However, if you want to pay less in the end, incorporate or at least get a dba/fbn going so you can have payments made to you in the biz name.
Also you may want to check with your local city/county to see about any additional taxes for doing business in your area and if any certificates/licenses are needed to operate.
If you are not making a huge amount (under 100-110K per year) then you can still take home a nice chunk of change with just a dba/fbn. It will all depend on your total take home and how much of the accounting/financial aspects you can manage yourself. Oh and let's not forget about what state you live in can have an effect on your business taxes as well.
tanya7zhou
Regular Member
- Jul 22, 2008
- 276
- 68
Harro
Even here in the UK we've to pay the taxes, I think we need to submit our account details before the 30th of October. Yes I pay an accountant about 500 quid to do the nitty gritty accounting work.
Even here in the UK we've to pay the taxes, I think we need to submit our account details before the 30th of October. Yes I pay an accountant about 500 quid to do the nitty gritty accounting work.
Yep I know many bankers and they all say split up your transactions into less than 10K increments. And not 9,999, as that is very suspicious. Anything 10K or over is automatic form to the IRS by law.
J
java
Guest
Westly Snipes got lucky in that he just ended up paying everything he owed plus penalties. Irwin Schiff was not so lucky and will probably end up dieing in jail considering his age and sentence.
Uncle Kracker
Registered Member
- Sep 15, 2008
- 89
- 186
Yeah, good point! The penalties can be much more severe depending on age.
nomorealarmclock
Newbie
- Sep 14, 2008
- 26
- 3
You all are SO helpful as I read these posts. Tax season is around the corner and I'm getting my butt ready for the government poke. I would LoVe to avoid the wallet rape since this is my first year doing business online.
Is there some kind of course I can read about all this?
I originally registered as a sole proprieter. Is it too late to incorportate before tax season? (If this sounds like a dumb question, it just shows I have no clue what I'm doing as far as taxes go...I promise I'm a MUCH better marketer...thanks to this forum)
Is there some kind of course I can read about all this?
I originally registered as a sole proprieter. Is it too late to incorportate before tax season? (If this sounds like a dumb question, it just shows I have no clue what I'm doing as far as taxes go...I promise I'm a MUCH better marketer...thanks to this forum)
problemsolver
Registered Member
- Sep 8, 2007
- 88
- 33
bump.. anyone know about this? i know it's old post but relevant with tax season right around the corner.
xpro
Regular Member
- Jan 21, 2009
- 442
- 24
If you are a US citizen you are required to pay taxes even if you are outside of the country.
loclhero
Supreme Member
- Jun 11, 2007
- 1,284
- 2,444
I never went for this "have to incorporate" shit. Have I lost money? Who knows. What I know is that the average bher can do his own taxes imo. Christ, why wold you pay some douchebag accountant $500 to do your personal taxes when you're the one who has to get all the records together? And then he just runs his software which is basically the same as what you get with turbotax anyway that you can buy for $75.
Between my wifes salary from her job and my bh earnings, we are deep into 6 figures and I do my own with turbotax.
And yes, you have to pay taxes.
Between my wifes salary from her job and my bh earnings, we are deep into 6 figures and I do my own with turbotax.
And yes, you have to pay taxes.
