In which I list the pros and cons of becoming an LLC, and offer my advice. Remember: I am neither a lawyer nor a CPA, so you might want to consult both of them as well!
I should clarify what I mean by “the IRS counts all your LLC earnings as your income even though you can only take a distribution:” Let’s say you are a freelancer who incorporated as a single-member LLC and you earned $50,000 in freelance earnings. Let’s also say that you took $40,000 of those earnings as a distribution, which means that’s the money that went from your business bank account to your personal bank account and got put towards rent and food and stuff. The other $10K stayed in your business bank account and was either spent on business expenses or saved for future business expenses.
At the end of the year, the IRS will tax you on the entire $50K (minus expenses/deductions/etc. etc. etc.) even though you only paid yourself $40K. That’s what I mean by “it’s all your income,” even though you’re also supposed to keep your business income separate from your personal income.
How do you get better jobs? LET’S DISCUSS.
Remember how I have a podcast? It is BACK from SUMMER HIATUS, and if you’re like “um, summer ended ten days ago,” listen to the new episode, it explains why I’m a little late.
How do you turn a file saved on your computer into AN ACTUAL BOOK? How do you get that book on Amazon? Or in bookstores? What about libraries?
This episode takes you through the process of publishing your book and getting it out into the world.
You might also want to listen to the episodes Why Self-Publish? and Talking to Dana Kelly about “Your Book, Your Brand.”
Here are two more resources I mention in the podcast:
Also, when I started writing the show notes, I found out that Amazon might be phasing out CreateSpace in favor of offering a new “print-on-demand paperback” service through Amazon Kindle Direct Publishing. (This industry changes so quickly!) The basic information in the podcast should still apply!
Since my novel The Biographies of Ordinary People: Volume 2 is releasing next week, this month’s podcast episodes are both about SELF-PUBLISHING. Today, we’re looking at WHY you might choose self-publication; later this month, we’ll look at HOW to self-publish.
I got to chat with Dana Kaye of Kaye Publicity about her book Your Book, Your Brand: The Step-By-Step Guide to Launching Your Book and Boosting Your Sales. We discuss how to create an effective brand, how to reach out to media contacts, and when people should do their own publicity vs. when they should hire a publicist.
It’s almost Tax Day! But since most of us have already done our 2017 taxes, this episode is all about how freelance taxes will change in 2018.
I mention TaxAct a few times, as well as the articles TaxAct sponsored on The Billfold. If you’re interested in those articles, here they are:
You should also read this article I wrote for The Freelancer, which covers 2018 tax changes as they relate to both sole proprietors and incorporated freelancers: Should Freelancers Incorporate in 2018?
I interview special guest Paulette Perhach about how she got started as a writer, how she handles the financial side of writing, and what people will learn from her forthcoming book, Welcome to the Writer’s Life.
Learn more about Paulette at pauletteperhach.com and fuckofffund.com.
Pre-order Welcome to the Writer’s Life here.
New Writing & Money episode up! Here’s what you need to do before you say yes to a new client.