Massage Parlor Reports

[QUOTE=GerkinJerkin;3264016]There was a place on 18th street just west of Halsted but that place closed. There was a place around 47th & Ashland that used to run a girl in for a week but the talent was never good. Once in awhile there is a Little Village ad that will pop up but it can be shady and YMMV. No lace to make a connection. Everything covered and rubbing alcohol on junior. There are two girls out by Harlem who used to post on Backpage. I think a lot of these latinas might not want to set up shop in their own neighborhood. One of my all time favorites was a petite little latina who worked under the radar of family / friends. She was a lot of fun.[/QUOTE]The only one I knew of by 47th was on western, about a block from the Home Depot. She usually runs an add with just a pic of cleavage. I've had a decent time there a couple of times, this goes a little while back though. There was also the Latina apt in that area, not a place I would recommend. I had one decent visit at that place, which ended in a Greek lesson. My last visit there I had rubbing alcohol thrown all over me by some fat ass 50 plus year old with a hemroid.

Thus far no profit in 2016. But we have enough cash flow to sustain her and allow her to send monthly money to her Mom & Dad for their living expenses. She also donates about $100 a month to charity. We introduced ourselves to our neighbors in the mall and asked them to nominate charities for us to donate. My return on investment is karma, not cash.

[QUOTE=DMichaels69;3265968]Is the business making money yet? Are you looking for a return on your investment or are all the profits her's?[/QUOTE]

Yes. That's very helpful, thank you. The only footnote, I learned. We (she) had to be a C-corp because she is not a resident alien (yet). No green card, (yet). I can't be the owner since I still have an American wife who signs the tax return. I'm looking for tax software to handle her taxes. I use Turbo tax for my personal and investment taxes, TaxAct for my LLC, (because Turbo tax is way too expensive and my business is simple consulting and fee income).

[QUOTE=Truthfu11;3266002]Bob, If she's paid herself a wage the company should issue her a W2. Along with that comes withholding and paying FICA and SS to the Feds. The business profits will roll to her personal return and are not taxed at the corporate level. She probably doesn't qualify as an Independent Contractor (which any employee might) since she provides the place and all the materials for her work.

Also, any loss rolls to her personal return. Be aware that a business can only claim a loss something like 2/5 or 4/7 years otherwise it loses status and has to be declared a hobby.

The usual caveat, consult a professional tax accountant or attorney. This is not tax advice.[/QUOTE]

Sounds like you are working on the green card?

[QUOTE=Bob521;3266105]Yes. That's very helpful, thank you. The only footnote, I learned. We (she) had to be a C-corp because she is not a resident alien (yet). No green card, (yet). I can't be the owner since I still have an American wife who signs the tax return. I'm looking for tax software to handle her taxes. I use Turbo tax for my personal and investment taxes, TaxAct for my LLC, (because Turbo tax is way too expensive and my business is simple consulting and fee income).[/QUOTE]

[QUOTE=Magooski;3265981]You can deduct all expenses on towels, paper products etc. Any internet / Comcast, advertising costs, bottles of water. But I imagine you know that already.[/QUOTE]What up old man? I've let messages on your phone? You ok.

Princess is legit. I know a girl who works there. They have a few new girls and more coming in, but they're not doing anything. Yet. Probably in due time but the owners run it legit. Belmont is the go-to. Hard to go wrong there.

[QUOTE=ChedLet64;3261745]Been reading TER, EROS, Here, Reddit, Rubmaps for a few weeks now. I am ready. Where should I try first?

I am thinking Princess on Belmont. Also considering Latin or Belmont Spa. I would appreciate some advisement if you can reply or PM. Thanks.[/QUOTE]

[QUOTE=Bob521;3266105]Yes. That's very helpful, thank you. The only footnote, I learned. We (she) had to be a C-corp because she is not a resident alien (yet). No green card, (yet). I can't be the owner since I still have an American wife who signs the tax return. I'm looking for tax software to handle her taxes. I use Turbo tax for my personal and investment taxes, TaxAct for my LLC, (because Turbo tax is way too expensive and my business is simple consulting and fee income).[/QUOTE]Yes, I believe C Corp status allows / requires you to pass all income and loss back to the owner in the form of a Schedule K-1. That probably also includes any payments she is sending to China. Those should be made from her income and not from business profits or as business expenses.

You are correct. C-corp is the only business structure that allows non-US citizens to own a business in the US. That said, US will still require applicable work authorization (H1 B, EAD, GC) to legally work here irrespective of whether the worker also own the business.

I would assume she has acceptable form of work authorization in place. If it is not the case, or is still under process, it might be best to review the options with an attorney.

As regards the initial seed money, the money that you loaned to L, I believe will need to get recorded in the books and may attract a gift tax if it is 14000 or more. Reference - [URL]https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes[/URL].

Also, L may be entitled to pay herself an interest for the initial loan upto 8% APR until the business is able to return the loan. Also, if properly documented, she should be able to take back the loan without having to pay any taxes on that.

Again I'm not a legal professional and what I say may or may not exactly apply in your situation. So pl. Consult with one so you will have appropriate defenses to safeguard your situation.

[QUOTE=Bob521;3266105]Yes. That's very helpful, thank you. The only footnote, I learned. We (she) had to be a C-corp because she is not a resident alien (yet). No green card, (yet). I can't be the owner since I still have an American wife who signs the tax return. I'm looking for tax software to handle her taxes. I use Turbo tax for my personal and investment taxes, TaxAct for my LLC, (because Turbo tax is way too expensive and my business is simple consulting and fee income).[/QUOTE]

Its a long long process. I still remember, about ten years ago on a business trip. I was in a hotel bar and the bartender was smiling. He said to me: "Man, this is the happiest day of my life!" Today, I became an American citizen!. It was an emotional moment, actually for both us us. The things we take for granted in this county, immigrants spend years to achieve, sacrificing everything.

[QUOTE=DMichaels69;3266125]Sounds like you are working on the green card?[/QUOTE]

I'm going to attempt it myself, unless I run into trouble. I've been doing my own taxes for 44 years. Business taxes for three years. In my own case I use tax software and only deduct or claim verifiable items. That said, the tax rules are ridiculously inane and complex. My problem this time is learning the rules for a non-resident alien, which I guess amounts to reading, and then making sure I can come up with a way to verify both income and expenses. Cash businesses, and no 1099 forms (since none of her previous jobs issued anything) are tricky. WButh the withholding nd employment taxes are very very helpful items of advice.

[QUOTE=E2304;3265986]I use an expensive but competent accountant. Pm me if you want info.[/QUOTE]

I'm laughing as I read this. Who would think I get legal and tax advice from USASG. (Don't worry, I'm not "relying" on this advice, and I will consult professional help. You're off the hook.) She does have a work permit. Although it was stolen, along with her passport and other vital documents, but I can document all that. I did document this as a $30,000 "demand loan" to her at the minimum "legal" rate.

[QUOTE=Lebruno;3267042]You are correct. C-corp is the only business structure that allows non-US citizens to own a business in the US. That said, US will still require applicable work authorization (H1 B, EAD, GC) to legally work here irrespective of whether the worker also own the business.

I would assume she has acceptable form of work authorization in place. If it is not the case, or is still under process, it might be best to review the options with an attorney.

As regards the initial seed money, the money that you loaned to L, I believe will need to get recorded in the books and may attract a gift tax if it is 14000 or more. Reference - [URL]https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes[/URL].

Also, L may be entitled to pay herself an interest for the initial loan upto 8% APR until the business is able to return the loan. Also, if properly documented, she should be able to take back the loan without having to pay any taxes on that.

Again I'm not a legal professional and what I say may or may not exactly apply in your situation. So pl. Consult with one so you will have appropriate defenses to safeguard your situation.[/QUOTE]

[QUOTE=Bob521;3267066]I'm going to attempt it myself, unless I run into trouble. I've been doing my own taxes for 44 years. Business taxes for three years. In my own case I use tax software and only deduct or claim verifiable items. That said, the tax rules are ridiculously inane and complex. My problem this time is learning the rules for a non-resident alien, which I guess amounts to reading, and then making sure I can come up with a way to verify both income and expenses. Cash businesses, and no 1099 forms (since none of her previous jobs issued anything) are tricky. WButh the withholding nd employment taxes are very very helpful items of advice.[/QUOTE]Running a legit business makes it easier. Keep a ledger of income and actual expenses and you will be in good shape. I used to think I was up on things but I can't understand my return any more.

[QUOTE=Gopher88;3266342]What up old man? I've let messages on your phone? You ok.[/QUOTE]I see they didn't kill my voice mail yet. My job was eliminated about 4 weeks ago, on 16th. But well enough!

Thank you very much! We actually have matching Chromebooks and use Google Docs with the add-on translator. So we both can make concurrent entries of expenses and revenue in English or Chinese. I've also written contracts in Chinese and English but I found that 99% of US lawyers get upset at seeing Chinese in a contract (LOL). But that being said, I refuse to enter into a business deal with someone if they don't understand the deal.

[QUOTE=E2304;3267178]Running a legit business makes it easier. Keep a ledger of income and actual expenses and you will be in good shape. I used to think I was up on things but I can't understand my return any more.[/QUOTE]

[QUOTE=Bob521;3267397]Thank you very much! We actually have matching Chromebooks and use Google Docs with the add-on translator. So we both can make concurrent entries of expenses and revenue in English or Chinese. I've also written contracts in Chinese and English but I found that 99% of US lawyers get upset at seeing Chinese in a contract (LOL). But that being said, I refuse to enter into a business deal with someone if they don't understand the deal.[/QUOTE]You have done your research and followed thru. For book keeping you might look into quickbooks pro. I ran a business full time for over 12 years and the last 8 or so part x. Much easier when it comes to tax season. I am still using qb pro 2005 even though I have newer machines. Let's just say there are easy hacks around the company wanting you to buy their new product from year to year. My accountant for years got me into it and I never looked back. Now as far as the translation goes. You might want to contact the company directly. Good work!