Finance Questions? Ask a Financial Expert for Answers ASAP
Hello, how are you today?
Your best option would be to set up an LLC for yourself, with an LLC bank account, and receive the funds and make the payment out of this account
That way, you are left with the profit which you can easily show at tax time
where is the best place for recieving funds without being open to the state tax
in my case
that i dont even live out there any longer
Well, if you are are a resident of a state, you will have state tax regardless of where you open the account
So if I open my llc account in Florida, I will be open to state tax on just the 50,000 remaining for the art consultancy
There's no state tax in flordia
And yes, if state tax were due it would be due only on the $50,000 fee not the entire $250,000 payment
Is there a way I can make an new llc and bank account in florida from Europe or will I need to go to Florida to do this
I need it fairly quick
You should be able to do this since you are an American Citizen online...
The hardest part will be opening the bank account because of all the patriot act laws
Yes but what is the fastest way to do this, if I give power attorney to my uncle to sign on my behalf?
That may work quickly as wll, yes
Is there anything else you need assistance with today?
Yes, just to summarize, so if I opened an LLC in Florida with a bank account in Florida, and received the full 250,000 on that account, and I made a payment of 200,000 to europe, remaining with 50,000, the tax's would be 0?
For state, the tax would be 0 you would still owe federal taxes
What type of income do you have now?
It depends, filing status and how much income you have
I dont know
I would need to know those things before telling you how much tax would be
Dont you think its easier having a legal firm open an escrow account for me to recieve and transact from
considering im in italy at the moment
so I can have the client pay me there?
Well you will still owe the tax. You could still do that if you wanted to...if you found a legal firm to do that. It might be quicker, but you could still go the LLC route too
Do you think that I could create an LLC in one day and then have my uncle (lawyer) sign for me in regards XXXXX XXXXX the bank account? This would be fast but I am not sure if it can be done? Considering a large firm in America could open probably an escrow to receive funds into fairly quickly
No, you could not do it in one day
You're looking at a few days
But if you have an uncle lawyer I'm sure his firm could turn around and open an account in one day
Yea just he isnt in a big firm
I think only large firms can do this
You wouldn't have to be a big firm to open an escrow account
But, I am sure you could find one to do it, there will just be the additional cost of having them do this for you
Your great, thank you for all the help
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