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3219472 No.3219472 [Reply] [Original]

Post any uncertainties you might have. Hopefully some experienced artists and proanons will share their insight, on how to do it the right way, and what traps to avoid.


>How do freelancers and self-employers deal with taxes?

>Do you tell your tax office that you make money by drawing furry porn?

>Do you tell them about ALL the things you sold? (prints, commissions etc.)

>How do you deal with donations and tips (Patreon and Paypal), do you need to state/tax those?

>Ever got some weird questions from your bank or Paypal? (frozen accounts)

>Do you use a private- or business Paypal account for your Patreon and artsy stuff?

>Or do you try to stay low and hope to avoid taxes altogether?


Share your dirty secrets anon

>> No.3219475

Get a LLC, and funnel the money to your company. Then just say it's money made through your company and have it be some generic description. "Commission-based services" or something.

Make a website for your company and put a bunch of bullshit stuff on it like "Will draw concept art for you etc"
You don't have to specify it's furry shit, just say "I DO ART NIGGA"

>> No.3219483

>>3219472
Nice try IRS. You're not going to get a hold of my cum stained money.

>> No.3219485

>>3219475

helpful tip anon

>> No.3220190

>>3219475
I mean LLC is the way to go for legal reasons, but for tax reasons, it's pretty shit. Writing off lube as an expense eases the burden a bit but basically half your income is inaccessible until tax season rolls around because you never know how exactly you're going to get shafted on any given year.

>> No.3220207

>>3220190
>not opening a studio
>not sleeping in the studio
>not having company breakfasts and lunches every day
>not having an entertainment lounge for your break
>not having a company car, phone and computer
>not writing off movies, games, comics, books, tutorials, etc. as expenses for research
lmaoing @ ur company

>> No.3220224

>>3220207
man, can you really get away with writing off so much shit?

>> No.3220231

>>3220224
Well, not if you only draw gay porn, but if you actually work for movies, games, etc. it is literally your job to keep up with trends. E3 may as well be business expo for you

>> No.3220244

>>3220224
More or less, the problem comes when there's any sort of liability. Everything you have under the company ownership gets seized.

>> No.3220254

>>3220244
>not just making a new company
>what are they gonna do, arrest me for tax evasion?

>> No.3220258
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3220258

Does paypal stills bans people for drawing porn?

>> No.3220269

>>3220254
My idiot childhood friend is doing 10 years for conspiracy to commit fraud by pretty much the same circumstances. The real issue is if you're working for some company and shit goes south and they try to reclaim "their" assets and now you don't have a computer to do your job on because it was the company computer.

>> No.3220277

>>3220258
No. They just put their foot down on loli shit.
Mantis-x was given shit and he had to change how his patreon was presented, but he still does the same 3d loli animation porn.

>> No.3220278

>>3220258
Yep

>> No.3220282

>>3220277
So as long as it isn't super obvious they don't care?

>> No.3220288

>>3220282
I think he is confused. PayPal doesn't allow it but people still use it to pay for porn since it not like PayPal will find out. They only allow porn related stuff if it's from patron but patreon has its own set of rules.

>> No.3220294

>>3220277
Paypal greenlighted patreon for porn because it was a goldmine and they could just shrug it off as patreon's fault if something went south, their own porn policy never changed.

>>3220282
As long as they don't find out, they don't care.

>> No.3220390

>>3219472
don't be too confident with how much money you're getting until it clears in the next month. in my experience, I had patrons who looked like they paid once they pledged but once when the next month rolled in they were frauds and one cancelled their payment with their credit card company (it didn't show fraud in the dashboard though)

>> No.3220716

>>3220390

>>3220390

I see, so they can charge their money back and screw you over?

I'm rather curious about OP's donation question. Since it's people giving you money as a "gift" to support what you're doing.. how to explain those in the tax office. Like are these donations or tips something that even need to be filed? Do they have the right to claim taxes on those?

I know Charity is free from that, but since these "donations" here are technically not charity related..

>> No.3220718

>>3220190

Better to stay a private "freelancer" in this case?

>> No.3220731

>>3220258
People get banned because they constantly dodge fees with the "friends and family" option and in general are too dumb to use invoices. They sell items that need to be shipped by accident instead of a service. They do business with retards who immediately use chargeback in hope to get their 30$ back.
Porn isn't the reason.

>> No.3220761

>>3220718
In general, no. It's relative to your income and tax structures. Sole proprietorship has a very high tax burden and high liability, where an LLC places the burden on the LLC and you only pay personal income tax but essentially get taxed twice. However, it is easier to write off expenses to the point that the LLC makes almost no profit, as you are an expense, which means you're paying little more than personal tax.

Incorporation is the way to go for most people, but only when they exceed the "hobby" exemption. Go talk to a lawyer, it's been a long time since I sat through a business class.

>> No.3220778

>>3220761
You can incorporate in nevada and not get hit with the double tax, it's what we do for our patreon nsfw game.

>> No.3221018

>>3220716
I don't know shit about anything but:
Isn't Patreon set up as a service? I.e. the idea certainly is that you're just giving the artist donations but it's actually more like you're selling a service - 10 bux a month for PSDs etc.

>> No.3221385

>>3221018
It's a tip jar. You can offer something in return to patrons, but it's basically monthly support for whatever you do elsewhere.

>> No.3221852

>>3220731
>People get banned because they constantly dodge fees with the "friends and family" option and in general are too dumb to use invoices.

I think this is true. I make paypal quite a bit of change every month, and have had a number of scares with people literally writing 'make the horsecock absolutely massive please and shooting gallons cum' and similar in notes when paying. Also had some disputes where I assume some paypal employee went through my notes and must have read them... and still I am unbanned.

I believe if you keep making paypal money they will tolerate some breach of ToS with adult stuff.

But I have never dodged fees, so that's probably something not to do.

>> No.3221892

>>3221852
That's why you should tell your customers to use paste bin for the commission info.

>> No.3221899
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3221899

>>3219472
>mfw making gud money doing non porn commissions
tell me how is my goverment gonna find out that i make money?
the money always stays in my paypal, which isnt linked to any bank nor it has any of my personal info.
and i always buy shit online
Checkmate niggerinos

>> No.3221920

>>3221899

how that work? can't buy crypto with paypal, can't purchase on amazon with paypal, and without an ID-confirmed paypal account you can't make over a certain amount of shekels a year. I think it was 8k or something like that? hardly gud money eh...

>> No.3221929

>>3221899
You have a very tiny spending limit on non-verified accounts.
>the money always stays in my paypal
and it will stay there until you link your bank account/credit card.
>nor it has any of my personal info
You might get into trouble for signing up with incorrect information when you eventually have to verify your account to get your money.

>> No.3221932

>>3221852
Use invoices and they won't be able to write anything to you. Make sure when they paid to view the shipping info and select "service rendered, no shipping required" By default paypal is used for buying stuff on ebay which involves a tracking number to provide buyer protection.
I have used paypal for almost 20 commissions over the year with no problems. Don't expect your clients to know how paypal works.

>> No.3222823

>>3221932

Thanks anon that's super helpful

>>3221892

>what did he mean by this?


>>3221899

what he >>3221929 said you genius

>> No.3222826

>>3221018
>>3221385

yeah that's true.. some youtubers have patreon and offer literally nothing in return, not even early access or whatever. It's really just a support/donation format

>> No.3222830

Hey, everyone talks about paypal but what about bitcoin ?

>> No.3222840

>>3220731
Artists also get banned, not for porn but "selling sexual services". There are retards who don't use invoices and let people send their money through "goods and services" option, where you get the risk of your commissioner adding inconvenient stupid shit in the description box. I mean, if somebody send you money and the description says "make his cock veiny and longer :3c" you're screwed.

>> No.3222841

>>3220761

I wonder if people like sakimichan are going the LLC route.. always these chinks making the big buck, they must know some secrets

Wlop is living in china, selling his services internationally, probably has an bank account in US and one in China. How come he doesn't pay taxes to US as well

>> No.3222842
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3222842

>>3222840

thx, have a seat anon

>> No.3222850

>>3222842
nice plastic looking ass :)))))

>> No.3223421

>>3222842
>imitating real life skin imperfections
its unnapealing. i learned more about animu today

>> No.3223422

>>3223421
unappealing when done improperly

>> No.3223425

>>3223422
show me a good example please

>> No.3223896

>>3223421

don't worry about it, the artist just traced the outlines of an photo and clipped actual pics of 2B's dress on top of the butt. And of course the obvious low opacity smearing on the butt.. for whatever reason

That's why it looks bad, but like anon above mentioned, when done correctly it's a different story.

>> No.3223913

>>3221899
patreon is obligated to inform the gubmint if it’s an american company

that’s why americans used to use euro companies for funny stuff and euros american companies

>> No.3224067

Does anyone know if people can join my higher Patreon tiers and grab up all the shit they want and bail immediately after? That seems to be how it is with the way its worded. Is there an option to restrict their access to past items until they pay at least once?

>> No.3224093

>>3224067
Yes, they can. You have two options.
Create a patreon without paywalled content or distribute the rewards yourself to those who actually paid. Keep an archive on dropbox for example and share that aswell with every update. Give new patrons the option to ask for that link.
Alot of artists I know are doing it this way.

>> No.3224746
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3224746

>>3221920
>>3221929
>>3222823
>>3223913
forgot to say its gud money FOR the country im living in.
I just bought an ipad pro with apple pencil.
this money will never go to my bank account, it's only used to buy shit online

>> No.3224753

I have an intention to pay my student's loan through money gain from patreon. (because USD is stronger than my country's money, 1 USD is about 5). Will they check where I get my incomes from?
(I draw pron)

>> No.3224829

>>3224753
You should see a tax consultant. They won't ask you to "post your work", you draw, that's it. They want to know how much you think you will make in your first years, if it's hobby or a full-time job and from where you work. It's just to make sure you aren't this guy >>3224746

>> No.3224900

>>3224093
>>3224829

both very helpful, thanks

>>3224829
with hobby you mean part-time? I was always wondering if you need to state the stuff that you do/sell as a "hobby", while having a full time job as well?

>> No.3224935

>>3224900
It's all simply considered taxable income at the end of the year. That's the important part. A tax consultant could answer those questions better than anyone on here.

>> No.3226579

>>3224746
Dude, you CAN'T pay for shit, even online, without a verified account
are you dense?