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Which payment platform gets rid of accountants?

Discussion in 'BlackHat Lounge' started by Godziwa, Dec 11, 2014.

  1. Godziwa

    Godziwa Regular Member

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    Hi guys,

    I plan on opening a service eventually and the thing that holds me back right now are taxes. I was told that I need to pay IRS part of my income earned from my business and all business owners do that.

    It got me thinking of a legal bypass, what if I get a payment platform that gets rid of that, They deal with that and give me the rest of the money?

    Something like etsy. I might not be clear on selling things on etsy but does it not get rid of having to do taxes and getting an accountant/ doing it yourself?
     
  2. Y060N

    Y060N Junior Member

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    PayPal will send you a 1099, but you are still responsible for doing your taxes for your business. As far as I know, there is no way to bypass this - but you can hire an accountant to just do it all for you and manage your money for you.
     
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  3. Godziwa

    Godziwa Regular Member

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    Argh! Accountants of expensive! So just to be clear, even if I was to take the service, put it on etsy and just redirect my customers there to buy the service. I still have to do taxes for my business?
     
  4. Y060N

    Y060N Junior Member

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    As far as I know, yes. For my business I sell on Amazon and Paypal among others. Most of the bigger companies like these will send you a 1099, but you are still responsible for doing your taxes because you will have expenses to claim on (and possibly multiple revenue streams). Accountants really aren't very expensive. If you're making a considerable income that you're reporting (over 400 is the threshold, per month), then an accountant will usually do a one-time fee of $400-500 to file for corporate taxes.

    If you're not doing any major revenue, and still have a second job, you can claim this on your personal taxes under schedule C on a 1040. This way you aren't having to deal with the 15% extra tax of self employment (which I just learned about).

    Edit: I'm not an accountant so don't take this as accounting advice - just what I've learned running my own business in the last year and having to deal with tax stuff as of late. If you're running a business and formed an LLC and that is your only income stream - consider forming an S corp. I just learned I am going to have to do this to subsidize the amount of taxes given on self employment.
     
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