Question on taxes on commercials WTF

2

24fps4ever

Well-known member
ok guys I am a bit in the dark here and maybe someone can help me out, see I have always done commercials locally and gotten paid cash, now I am doing commercials for a coorporation and they asked for an "invoice" I am guessing because they want my tax Id number, I live in texas, now my question is
do you guys (the ones that do commercials and stuff like that for a living)
do you guys have a tax ID and a registered bussiness even if you are feelancin? what are the consequences of not getting all the mumo jumbo
someone give me some tips regarding this, by the way I do not have empoyees, its all me... from idea to dvd.

thanks guys

24fps
 
that is the way of the freelancer.

And when you are just you, your tax id number is your SSN. You can just do it as you. The time you might think about a business is you start subcontracting to other people - hiring them yourself to help out, or if you want to limit liability.

And thank God you live in Tx where there is no state or local.
 
Your Tax ID number is either your corporation's Employer Identification Number (if you're a corp) or your own social security number (if an individual).
 
ok so let me get this straight, I need to get a self employment tax number
and register my business as a company is that right?

what happend when it comes tax time, does it get complicated?
 
No you don't have to set up a company, if you're not actually a company. What you should probably do is talk to a tax accountant to find out what the best path would be for you to take.
 
If you plan on eventually getting bigger in the future, think about incorporating or forming an LLC.

You'll get a federal EIN # and better tax advantages.

Talk to an accountant.
 
I started at sole proprietership here in PA. It's didn't cost anything to do, so it was well worth it. You have to keep good records, and make sure you stay on top of filing sales tax reports, but it really isn't that hard. Plus, its nice being able to write off all my business expenses at tax time.
 
so lets say that for regular businesses I charge 500 bucks a comercial
now I have to do an invoice to incorporate the 7% tax here in tx
or should I just add the tax to the big companies that ask for an invoice
 
You charge the company the sales tax, then put that aside and send it in to the governement when you file your sales tax report. I don't know about other states, but here in PA they consider any physical product taxable...even the dvd or tape that you might hand over to the company your doing business with. The only time I don't make the customer pay sales tax is if it is a major inconvience, such as selling mass DVD's on site at events, which I end up paying out of my own pocket, or tax exempt organizations...which are almost always non-profit.
 
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