MicrostockGroup
Microstock Photography Forum - General => General Stock Discussion => Topic started by: wds on December 14, 2019, 11:03
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Does anyone have any experience with joining FineArtAmerica using a business or corporate name vs. signing up as an individual?
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Why would you use a corporate name?
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Taxes. In the USA filing under a corporation is more tax efficient than filing under a sole trader. As a sole trader all your income is subject to (un)employment taxes, whereas filing under a corporation and paying yourself a reasonable market rate salary, whatever is left over is not subject to employment taxes. Though for this to work one would need to earn a reasonable income to make it worth your while in extra effort. Anyway, I file my stock income under a corporation.
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Taxes. In the USA filing under a corporation is more tax efficient than filing under a sole trader. As a sole trader all your income is subject to (un)employment taxes, whereas filing under a corporation and paying yourself a reasonable market rate salary, whatever is left over is not subject to employment taxes. Though for this to work one would need to earn a reasonable income to make it worth your while in extra effort. Anyway, I file my stock income under a corporation.
Odd, I've been a Sole Proprietor for 49 years and I don't pay unemployment taxes? I don't know what a sole trader is, not in the US that is. In addition to income tax, sole proprietors pay self-employment tax, which consists of payments to Social Security and Medicare funds. Is that what you meant? As a self employed, sole proprietor I deduct expenses, pay for social security and medicare for myself, and personal income taxes of course. Basically it's simple income and expenses accounting.
There are a number of protections by being incorporated, but there are also complications, as the income is property of the corporation, not the individual. True you have limited liability, removes personal liability, and protects your personal assets.
Avoiding taxes also means, you paid in less, you will get back less from social security. Of course if you invest for yourself, you'll do better than social security. people who avoid taxes and don't invest, will find out in the end, they have nothing to supplement their income when they are older.
I'm just saying, this is not all easy as, incorporate and you save. :)
I don't know why FAA would have anything against a corporate account. Why not just ask them and please come back and tell us the answer when you find out.
There are forums with moderators: https://fineartamerica.com/discussions.html
Or just fill out the contact us. I did last week, got an answer the next day. https://fineartamerica.com/contactus.html?tab=contactus
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I meant this. I just worded it poorly.
https://turbotax.intuit.com/tax-tips/small-business-taxes/how-an-s-corp-can-reduce-your-self-employment-taxes/L4abUcaRn
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I meant this. I just worded it poorly.
https://turbotax.intuit.com/tax-tips/small-business-taxes/how-an-s-corp-can-reduce-your-self-employment-taxes/L4abUcaRn
That's fine. I've worded things poorly many more times, because I've worked on newspapers, magazines and written for more years, so "stuff" happens. ;)
"While an S-corporation may save you in self-employment taxes, it may cost you more than it saves. " My additional was, avoiding SSA taxes and medicare, might seem a good idea now, but when you turn 65, you might wish you had contributed more, because your monthly check will be higher. If you invest on your own, and seriously do that, you'll actually be better off by the time you retire. All about choices and balance.
When I was grossing over $30,000 a month, incorporation was advised, when I suddenly was self employed without commissions, incorporation was a bad idea. You need someone who you can trust, who's a trained accountant to tell you. I don't pretend to be that person. Some apparent gains and savings are not.
Ask FAA and please report back. I don't know why they wouldn't accept a company, group or corporation? I think other people would be interested in the answer.
At this point, I'm just myself, I don't have the complications. (https://i.postimg.cc/YqC3vC8g/cheers.gif)
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I use my LLC name at FAA. Why use a company name? Dogmatic preference for cyber privacy and loathing of personal self promotion... are my reasons.
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I use my LLC name at FAA. Why use a company name? Dogmatic preference for cyber privacy and loathing of personal self promotion... are my reasons.
So did you set it up as a "gallery account"? Do they produce your 1099s to your "company name" or to your personal name?
Thanks
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I use my LLC name at FAA. Why use a company name? Dogmatic preference for cyber privacy and loathing of personal self promotion... are my reasons.
So did you set it up as a "gallery account"? Do they produce your 1099s to your "company name" or to your personal name?
Thanks
I have a paid account. The 1099 goes to the LLC and its EIN number... if they send one. Earnings are way less than 600.
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I use my LLC name at FAA. Why use a company name? Dogmatic preference for cyber privacy and loathing of personal self promotion... are my reasons.
So did you set it up as a "gallery account"? Do they produce your 1099s to your "company name" or to your personal name?
Thanks
At what point did you give them your EIN as that is not on the very simple application page (they just ask for name and company name)?
I have a paid account. The 1099 goes to the LLC and its EIN number... if they send one. Earnings are way less than 600.
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I use my LLC name at FAA. Why use a company name? Dogmatic preference for cyber privacy and loathing of personal self promotion... are my reasons.
So did you set it up as a "gallery account"? Do they produce your 1099s to your "company name" or to your personal name?
Thanks
At what point did you give them your EIN as that is not on the very simple application page (they just ask for name and company name)?
I have a paid account. The 1099 goes to the LLC and its EIN number... if they send one. Earnings are way less than 600.
Under tax information (US resident) there is an option for SS# or EIN#. I looked back at last years tax records... I did not receive a 1099. No surprise. Income was well below $600-
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I use my LLC name at FAA. Why use a company name? Dogmatic preference for cyber privacy and loathing of personal self promotion... are my reasons.
So did you set it up as a "gallery account"? Do they produce your 1099s to your "company name" or to your personal name?
Thanks
At what point did you give them your EIN as that is not on the very simple application page (they just ask for name and company name)?
I have a paid account. The 1099 goes to the LLC and its EIN number... if they send one. Earnings are way less than 600.
Under tax information (US resident) there is an option for SS# or EIN#. I looked back at last years tax records... I did not receive a 1099. No surprise. Income was well below $600-
I guess if you are under a company name, they would then issue the 1099 to the company name and EIN you entered.
Thanks for your help!!