In Fran's current business situation, her spending exceeds her income right now. No profits to tax, so no big tax bills.
She has mentioned that tax is a sizeable problem. I think they tax the money coming from Patreon and google before she gets it or something.
How it works here is if my busines expenses (including wages) matches my business income then my business pays zero tax.
I get taxed as a wage earner though.
it is very wise to talk to a financial / legal expert to check whether the type of business fits your needs & wishes. Yes, that is going to cost some money but I think it is well worth it.
Again I don't know about the US laws for employers exactly, but over here and others parts of the world, employers have to pay taxes on employees. The net wage gotten by the employee is only a fraction of what the employers pays for them in the end.
A fraction? That can't be right.
Here it's 5.1% "payroll tax" but only if you have over $1.2M in wages.
https://www.payrolltax.gov.au/resources#resources__rates_and_thresholds
There are other small costs but it's basically no big deal.
I'm quite sure income taxes as a business owner versus the type of business (sole proprietor, share holder of an LLC, etc) varies a lot per country. What is universally the same is that it is very wise to talk to a financial / legal expert to check whether the type of business fits your needs & wishes. Yes, that is going to cost some money but I think it is well worth it.
No wonder the country is becoming a banana republic, when producing anything useful is taxed way heavier than just buying and selling imported crap. Basically, the Finnish system punishes for selling work, and rewards trading imported crap.
In the US I beleive it's hugely state based, not national. Loius Rossmann for example just moved from New York to Texas (partly) because of the state based red tape and taxes.
She has mentioned that tax is a sizeable problem. I think they tax the money coming from Patreon and google before she gets it or something.
That sounds like they're withholding from her checks, which is not the same as that income actually being taxed. The withholdings are just a crude estimate of what tax will end up being due on it; the final tax calculations are done according to the tax code when you file your return and the previously withheld amounts are taken as credits against that. Over-withholding leads to a tax refund (financially inefficient though people seem to broadly love loaning the government money without interest all year long and then get happy when they get their own money back); under-withholding means you end up writing a check at tax time (ideal, as otherwise, you loaned the government money all year long for no interest).
Tax refunds are for the gullible. Yes! Loan the government your money!
Now at 0% interest now for 1 year!
In the US I beleive it's hugely state based, not national. Loius Rossmann for example just moved from New York to Texas (partly) because of the state based red tape and taxes.It is both. There are federal taxes and state taxes, everyone pays the federal taxes then the state taxes are on top of both. You'd definitely want to talk to somebody knowledgeable about the specific state you were planning to start a business in.
Yes, state is on top of federal, but it's the state based taxes that I hear all the yanks complaining about.
We don't have state based income taxes here. There are some difference in states in regards to payroll tax I I mentioned, and taxes if you are big building developer or something, but not something the individual needs to worry about.
No one ever moved stats in Australia because of taxes.
That's what banks are for. I'd rather have my money working for me than at the IRS at 0%.
For those more inclined, the mere pittance that the bank interest pays, there are other alternatives.
That outcome is unfortunate, but is also one of the least surprising things I've read in this entire thread. This exact outcome was prophesied two months ago.
Looks like the gamble on pleasing the Patrons didn't pay off by doing one video a week.
She lost 90% of the Youtube views for not uploading frequently, and that also lead to not having enough Patrons to replace those that drop off. Brutal!
So she is back to one video per day hampster wheel.
She will have another video coming soon, but here is a mention of it:
It's amazin how some channels can make one video a week/month and not only do fine, but grow. But then other channels can't. We are a slave to the algorithm.
https://youtu.be/mjuEdw016L0?t=5926
It's amazin how some channels can make one video a week/month and not only do fine, but grow. But then other channels can't. We are a slave to the algorithm.One video per *day*? Who on earth has time to watch that many, and how high can the quality possibly be? I would much rather watch one really well produced video per month that crappy daily filler. Quality over quantity.
Looks like the gamble on pleasing the Patrons didn't pay off by doing one video a week.
She lost 90% of the Youtube views for not uploading frequently, and that also lead to not having enough Patrons to replace those that drop off. Brutal!
So she is back to one video per day hampster wheel.
She will have another video coming soon, but here is a mention of it:
It's amazin how some channels can make one video a week/month and not only do fine, but grow. But then other channels can't. We are a slave to the algorithm.
https://youtu.be/mjuEdw016L0?t=5926
One video per *day*? Who on earth has time to watch that many, and how high can the quality possibly be? I would much rather watch one really well produced video per month that crappy daily filler. Quality over quantity.