As a business owner, you'll need to understand state and national tax terms and what applies to you. We highly recommend you spend some time reading through this and following our guide to making certain you are collecting and filing all the right kinds of taxes. Plus, we don't want you missing out on deductions!
INDEPENDENT CONTRACTOR | 1099 MISC
I'ts not complicated or difficult to run your own business as and independent contractor with BronzedBerry. You are your own boss and that comes with benefits!
Tanning Artists are independent representatives of BronzedBerry LLC and are 100% responsible for filing their own taxes. The IRS allows individuals to file a personal 1099 each year for income they have earned.
We will provide a 1099-MISC to any artist that earns $600.00 or more in BB Bucks. BronzedBerry encourages each Tanning Artist to enlist the help of a certified tax professional if they questions. They are trained to help you file the proper paperwork. Best of all they can help you with calculating your lawful deductions. Below you will find tips and information that we hope is useful, we are not tax professionals and therefore the below information should not be used as legal advice.
Every penny you receive including tips are taxable. That's why it's so important to keep great records of your expenses. In order to determine IF you owe the state or IRS money at the end of year you will subtract your expenes from your income and if your taxes will be based on what you netted after your expenses. However, remember those utilites, cell phone and mileage deductions? This is where all that hard work of record keeping comes in handy. Your tax professional will know how to attribute a value to those in order to maximize your lawful deductions.
Ways to keep track - Are you offering credit card purchases? If not, you should, hardly anyone carries cash and the fees are tax deductible! Any system like Paypal or our preferred provider, Squareup.com has an app for your phone that lets you keep track of client purchases! Even cash or check transactions. So, get in the habit of entering each client transaction into the system. Squareup even has a loyalty program you can create for free for clients. So, it's very helpful and will make it a breeze at tax time! Otherwise keep track on your calendar and at the end of the year add it all up.
Use our guide to help make sure you are keeping track of vital information as it relates to your business. As a business owner, there are many items in your home that can qualify as a deduction for your business! You will have indirect and direct expenses for your business.
Direct & Indirect Expenses - These expenses are related to your actual work, like cell phone, postage for mailing, supplies ( tan solution, equipment, client disposables, paper products (paper towels), notepads, office supplies). Don't forget your home office (speak with your CPA about the square footage dedicated to working as well as any utilities that qualify). You'll get to write off a percentage of these depending on your business. Make sure that you are calculating your travel, this includes a trip to post office, clients home or marketing events. Your CPA expense is also a deduction. Basically, a good rule of thumb is that anything you buy for your business can be a write-off! Even your BronzedBerry Membership
TIP: Grab your odometer mileage at the beginning of the year. You'll need it for your tax return. And keep track of mileage. A simple way is to add each appointment or qualifying trip into your google calendar. Add the physical address and then at the end of the year add it all up! Or download a mileage tracking app right on your phone.
Save your receipts and if you want to make it easy for your self-input them weekly or monthly into a simple Google Doc spreadsheet. You can provide your own Income/Expense Sheet to your CPA or do your own taxes....but you should be keeping up with this monthly to alleviate tax stress.
*Details above are for your information and should not be taken as legal tax advice. It is the responsibility of each Tanning Artist to keep track of local state and federal laws regarding spray tanning services as well as reseller sales tax obligations.