Currently... (convo with FB friend)

Friend:

Is there anyone who is a sole proprietor of their business who uses *state business sales tax website* to report and pay quarterly taxes? I am so confused and could use some insight/guidance.

Me:

One is only obligated to "file" taxes if one has a tax liability. I sell my time and labor ONLY.
I do not file taxes.


Friend:

I mean I do a service and I generate income and I my business is registered within WV. I do not have employees.


Me:

If you do nothing you need to charge tax for, you do not need to then make arrangements to transfer those taxes collected to the state.
Service is non taxable.


Friend:

I see, but how do I contribute to Social Security etc. and keep myself in the system so to speak.


Me:

Your income, over a certain threshold, IS taxable in the usual way.
But, of course, one is under no obligation to file for income tax unless they have a tax liability either.


Me:

Aye, there's the rub. You don't get Social Security, or anything else for that matter. No liability = no benefits.


Me:

We are invisible.


Me:

If you start charging like $400 an hour like a lawyer, then it's time to incorporate and put yourself on salary.


Me:

If there were a such thing as a non-profit sole proprietor corporation, I'd do that.
There isn't.

Friend:

Wow, I'm learning some things that give me great pause.


Me:

AEONS Design established 1987, in four different states over the years...


Friend:

So am I to understand that even though you are a citizen working in this country, since you do not work FOR someone else, you are not entitled, even if you pay income taxes, to the benefits that have been put into place for citizens of this country? I must be missing something.


Me:

Nope! You've got it. The "system" is working perfectly as designed.
Let's start a custom made artisanal bootstrap company.


Me:

As someone with MS, I have to be careful to keep my income low enough to get Medicaid...


Friend:

So I may as well be undocumented like my friend who works her ass off, pays taxes but can not vote, can not access healthcare through ACA and god knows what else she can't do or have. I mean I know at this stage of our evolution, humans (especially the grossly rich who run the governments) have not yet realized we are one big tribe that needs to care for one another but I guess I just held out hope. Silly me.

Me:

Whelp. So far, we can't be deported. Just trying to avoid the sidewalk sleeper to imprisoned forced labor pipeline...