End of year tax tips for the self-employed

One of the most daunting aspects of being a small business owner or freelancer is trying to figure out how to navigate bookkeeping and taxes. While it may seem overwhelming at first, it really is just a matter of being organized and surrounding yourself with smart people who “nerd-out” over things like deductions, receipts and contracts. We rounded up some of the best and brightest accountants and tax advisors to help you get ready for tax season. Don’t wait for 2019 to get your business in order! Putting these tips in place before the end of the year may just Read More…

Are you an independent contractor or employee?

Dear WAHFAQ, I recently started working with a company, and they told me that paying taxes is 100% my responsibility. They said I’m considered an “Independent Contractor.” I’m a bit confused as to what this actually means and what I have to do for taxes. When you enter into the “random job” world, you may find that not only can you get traditional employee work, but you might also score a few “independent contractor” gigs as well. It’s important to know the difference when it comes to keeping track of your business. The IRS website has three different Common Law Read More…

Do I need an EIN for mystery shopping?

Dear WAHFAQ, I was signing up with some mystery shopping companies that you recommended in your training program, and one of them stated that you had to have an EIN to shop for them.  Here is what is in their IC agreement: “Shoppers are independent contractors. In being an IC you must register yourself as a business in the state in which you live and to obtain a Federal Employer Tax ID number to file your taxes. This is the responsibility of all shoppers.” Can you give me some advice as to where I might go to get this?  Do Read More…

Should kids pay taxes on a lemonade stand?

Each summer, entrepreneurial kids will hit the driveways of America selling cookies and lemonade to passersby. Little thought is given to the legalities and regulations of this rite of passage because, after all, they’re just kids, right? At the 2011 US Open in Bethesa, Maryland, a group of kids decided to have a lemonade stand in hopes of earning some money.  They were shut down because they didn’t pay the $500 vendor fee. Meanwhile, other (older) entrepreneurs who paid $300 for land use permits continued collecting $60 parking fees so that they could have cars parked on their lawns. After Read More…