FA+
Shop
New Paypal Business Account; LLC Formation
2 months ago
New Paypal Business Account
A small notice to mostly just a few people, but I have a new Paypal Business account aside from the usual one I have used.
Reason being is that it will make it much easier for me to separate commission transactions from gifts/donations. Under the old account, it would be difficult to differentiate if I got audited. Paypal technically files its own tax form to the government based on what comes in to my old Paypal. I've ignored that amount because I know what my records actually say. But that is asking for trouble if they do decide to crack down on that difference.
Technically I don't make a lot of money to warrant getting audited, I wouldn't be surprised if something caused that to change under the whole "Department of Government Efficiency" thing to make sure the U.S. Government is getting its fair share of tax money from me. Better safe than sorry.
The other benefit is that the account will have its own Debit Card which will allow me to legally differentiate business related transactions like software, equipment, or even commissions/Patreon pledges for art (I put that last bit under "Advertising" come tax time).
If historic commissioners see an Invoice from a different email address, don't be alarmed as it should be the new one.
LLC Formation
The Paypal thing is happening because in regards to my building, I set in motion the process to put my Real Estate under an LLC; Going to cost me a pretty penny to do but should be helpful in several ways.
The big thing is that if something happens at my building and I get sued, they can ONLY seize my building and not come after my personal assets (my personal assets are worth substantially more than my building believe it or not).
The other is that with the LLC, it will have its own banks account. Similar to the Business Paypal account, it will make it much easier to prove Real Estate transactions if I get audited.
The attorney I talked to I asked if I should put my freelance work under an LLC as well but she said it really isn't necessary for the nature of my work and how much I make.
So there is that small update!
~Eclipsis
A small notice to mostly just a few people, but I have a new Paypal Business account aside from the usual one I have used.
Reason being is that it will make it much easier for me to separate commission transactions from gifts/donations. Under the old account, it would be difficult to differentiate if I got audited. Paypal technically files its own tax form to the government based on what comes in to my old Paypal. I've ignored that amount because I know what my records actually say. But that is asking for trouble if they do decide to crack down on that difference.
Technically I don't make a lot of money to warrant getting audited, I wouldn't be surprised if something caused that to change under the whole "Department of Government Efficiency" thing to make sure the U.S. Government is getting its fair share of tax money from me. Better safe than sorry.
The other benefit is that the account will have its own Debit Card which will allow me to legally differentiate business related transactions like software, equipment, or even commissions/Patreon pledges for art (I put that last bit under "Advertising" come tax time).
If historic commissioners see an Invoice from a different email address, don't be alarmed as it should be the new one.
LLC Formation
The Paypal thing is happening because in regards to my building, I set in motion the process to put my Real Estate under an LLC; Going to cost me a pretty penny to do but should be helpful in several ways.
The big thing is that if something happens at my building and I get sued, they can ONLY seize my building and not come after my personal assets (my personal assets are worth substantially more than my building believe it or not).
The other is that with the LLC, it will have its own banks account. Similar to the Business Paypal account, it will make it much easier to prove Real Estate transactions if I get audited.
The attorney I talked to I asked if I should put my freelance work under an LLC as well but she said it really isn't necessary for the nature of my work and how much I make.
So there is that small update!
~Eclipsis
VDOPlus
~vdo
A legal warrior gal... Though I suppose Nesha and Nikita might count as that?
Eclipsis
~eclipsis
OP
Pffft, hahaha, well there is that one sketch of Nesha as a warrior with a pen....
