Q: How do you start a self-employed private service provider?
I would like to start teaching cello but not accidentally commit tax fraud.
A: It's great to hear about your interest in teaching cello! To ensure you navigate this new venture without any tax-related issues, it's crucial to meticulously record all your expenses and income. This will not only help you manage your finances better but also simplify your tax filings. Considering setting up a Limited Liability Company (LLC) could be a wise move. An LLC can provide you with flexibility and protection, making it a popular choice for small business owners. Moreover, based on the revenue you generate, you might have to make a decision on your tax filing status. You could either opt for an S-corporation election, which might offer tax benefits under certain conditions, or proceed with filing a Schedule C as part of your personal tax returns. Each option has its nuances, so it might be beneficial to consult with a tax professional or business attorney to understand what's best for your specific situation. This proactive approach will not only keep you compliant with tax laws but also support the smooth operation of your teaching endeavors.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
