Hi, I'm writing this anonomously for privacy reasons but I will be giving true specific details of my situation.I have never spoken to an accountant or tax professional ever in my life. My family comes from very modest means and I grew up in section 8 housing, moved around NYC and NJ alot, and have no formal experience of handling money other than what I've been able to teach myself through books and videos.Fast forward: I am now 28 and after having spent years studying and developing my craft (specifically ecommerce, marketing, selling, etc.), my team and I at my job finally cracked it big and did $1 million in online sales in just 6 months (as opposed to $180k in online sales the entire year of 2019). Our sales are 10x from last year and next year we project to do even bigger.I am currently living in NJ and am employed at this company (we can call it ABC Company). I receive $375 USD direct deposit weekly as well $375 cash (shhhhh). So it looks as if I only make $375 a week but I take home $750 a week truly.I negotiated a royalty deal for net sales on the website and have been receiving checks of around ~$3500 a month on top of my wages (again which is $375 on paper after income taxes, but $750 truly).I have an LLC I established many years ago to very little success with online consulting, but I now use my LLC (lets call it Example LLC) to invoice my ABC Company, which they give me a check for and I deposit it into my business account. I then pay myself once a month from that account into my personal account. I also receive some money from Amazon (some books I published) monthly. That is all of the money that Example LLC currently receives as income.If you have read this far I really appreciate it. I have used Reddit for years and I really think I will find great advice. If I am doing anything odd, please let me know!Here are some of questions I have:How do I address being employed (I receive a W2) while also invoicing my job (ABC Company) through my LLC (Example LLC)? I ask this because of questions of deductions such as mileage, idk?I plan on moving from NJ to CA (Los Angeles specifically) next year around July. I do plan on working with and invoicing ABC Company in NJ while I live in CA and will be doing consulting work out there as well. So I will be operating in two states and maybe more, not sure if there is an ideal way to structure this? I know NJ and CA have huge taxes. I have heard things like DBAs and foreign entities, but am still a bit lost. I also heard CA charges $800 a year if you have an LLC?? I want to keep as much money as humanly possible.I began renting an office space last year (July 2019) for $370 a month and I use it to conduct business like keep my files, work on website, etc., but I also recently got my own 2-bedroom apartment this past March 2020 and I pay $1000 a month all utilities included. I can dedicate a whole room to business, but it is very small. Not sure how to manage this situation, whether you can have only one or 2 offices or if square footage is important. I still have the office space and am paying for both my apartment rent ($1000) and office space ($370). Should I keep just one for business? Again, idk.I plan to begin a new company (sole prop. LLC) dedicated to clothing design and production (Clothing LLC), and will be completely apart from my current consulting business (Example LLC). Since I am moving from NJ to CA, is there a better option of opening the new LLC (Clothing LLC) elsewhere?Do I need to pay quarterly taxes? I never have, but then again I have never really made much money until this year, so my old tax returns show very little income.Can an S-Corp own an LLC and would there be any advantages in my case? Or some type of holdings company?Is it possible to and would it be advantageous to use various DBA's?I plan on opening an LLC soon with a partner soon (50/50 ownership) so that we can open a joint business bank account as we plan on creating a new youtube channel and selling our own products via our new LLC's website (might sound silly but we kicked ass this year and we're aiming high!!!). My question is, can I have my LLC (Example LLC) be the partner instead of myself? I ask because then profits can be paid to Example LLC and I can pay myself from there? Not sure if this is ideal.---I know this was long and may not have made a whole lot of sense, but I am still learning. Any advice or ideas you can shed on any of the questions (or just your thoughts in general) would be awesome.My income is rising greatly every month and I just don't want to get caught up in issues with the IRS or pay crazy high taxes. I have school debt and a car payment so I just want to keep my head above water as I move up the income ladder. THANKS AGAIN GUYS I REALLY APPRECIATE YOU!!!If I can clarify any details, please let me know.TLDR: Was broke, now getting money, don't know how to structure efficiently, want to keep as much money as possible, plz help. see hubwealthy.com/wealthy
0 comments:
Post a Comment