Forming an LLC
Interested in the history of the LLC? It’s kinda neat.
The W-4 form was covered extensively in Episode 5. Shane says that “People are more complicated than this form.”
USEFUL hack: If you are a freelancer, add a little bit extra on line 6 of your W-4 to put a “down payment” on your taxes. This is really helpful for people who are employed full-time but also have a side hustle.
You might want to apply for an Employer Identification number or an EIN. It’s free from the IRS.
The IRS has pretty weird qualification but this helpful website lists other reasons like keeping you personal social security number off W-9 forms and applying for a separate business bank account or credit card.
The Non-Money Minute
Rest in power Sylvia Porter.
Sylvia Porter was one of America’s first personal finance columnists. She hid her gender writing under the name S.F. Porter for years, while she gained the trust of the American public. She made complicated financial concepts easy to understand for the average person.
I’m reading a fascinating book about her at the moment.
This is the form that your employers use to report the amount they paid you to the IRS. You get a copy if you’ve made more than $600 from a single company. If you’ve lost your 1099s, no worries, you can request a copy of these statements from the current year.
We talk about all the things you can and can’t write-off. What is a write-off anyways?
You can also request a wage and income transcript, it’s FREE.
Retirement Plans as a Freelancer
You have many options, so make sure to read about all the plans offered to find one that’s right for you.
Remember how we said that as a freelancer, you’re both the employer and the employee? Well, you have to assume ALL that tax liability. It sucks. It’s around 15.3% for 2017. Click here for a useful breakdown.
Freelance Isn’t Free!
Annie Levers stops by to talk about an exciting piece of legislation in New York City that protects freelancers from non payment. She’s the budget and policy director for city council member Brad Lander, who was the sponsor on the act.
In a nutshell, if you’re owed more than $800 by a company and it’s 30 days past due (and you have a written agreement), you can file a complaint and get DOUBLE DAMAGES if you win.
The city government has helpfully provided a sample contract, which you’ll need when going after a delinquent employer. Basically you need to copy and paste the text from this PDF linked HERE.