Salt Lake City, UT asked in Business Formation and Business Law for Utah

Q: How do you start a self-employed private service provider?

I would like to start teaching cello but not accidentally commit tax fraud.

1 Lawyer Answer
Wesley Winsor
Wesley Winsor
  • Saint George, UT
  • Licensed in Utah

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.

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