How to be Self-Employed in LA Without Losing Your Pants

As Kermit the Freelancer once said, "It ain't easy covering 100% of your own payroll tax."

How do you know if you're self-employed? 

You filled out a W-9 instead of a W-2. 

You receive a 1099 at the end of the year. 

You have heard rumors of such things as "sick days" and "paid holidays," but if they were to happen to you personally, you might question the validity of the pythagorean theorem.   

In short, it's easy to lose your pants in this town--especially when you're self-employed.

Make sure your a** is covered with these helpful tips.

Get Health Insurance

I don't want to hear your excuses. "I'm healthier than the offshore banking account of a Goldman Sachs executive in 2006" or "I have more vim and vigor than a Virginia eel during mating season." 

I've heard them all. They all suck. 

You heard me.

Think you can't afford an extra $100 per month? How about $50,000 for an ear infection? (I made that number up. But still.)

No Seriously, Get Health Insurance

It's the law, bro. Open enrollment started October 1st. Get on it.

Open an HSA (health savings account)

As a self-employed individual you have the option to get HSA qualified health insurance (high deductible health insurance that meets certain government requirements). I know you're starting to doze off right now because this information is so fascinating, but get this--

Money you put into your HSA is tax deductible--and you can use that pre-tax money to pay for qualified medical expenses. Now you can finally get those wisdom teeth extractions you've been eyeing. It's a win-win, my friend.

Open an IRA 

A retirement account is a lot like a trusty pair of corduroys--it's extra embarrassing to be 72 and caught sans pants or nest egg. 

Maybe you don't have a lot of money to invest. That's okay. Start small, but start somewhere. 

If you open a traditional IRA, the money you put in (up to $5,500 per year) is tax deductible. You are going to need those deductions. Trust me.

Register Your "Business" with the City of Los Angeles

For the love of all that is green, fuzzy and pants-free, do this NOW. You may not have a cubicle, personal assistant or water cooler around which to discuss the Breaking Bad finale, but to the city of LA, you are still a business.  

The details are a bit hazy, but if you do not do register your business with the city, they will track you down and hit you with a nasty sounding tax bill (happened to a friend of a friend).

All you have to do is register, then report your income each year.

It's easy and free to fill out the form and apply online. Go:

https://latax.lacity.org/oofweb/eappreg/eappreg_criteria.cfm

Find an Industry Accountant

No, it won't cost less than TurboTax and the bottle of vino you use to take the edge off of doing your taxes. Yes, it will save you money in the long run. Pay for a good accountant. A good accountant is worth the $100-$250 you might spend. 

How do you find this good accountant? Get a referral. Ask your industry friends--even if you're not in the industry. I know you have that friend who's been around the Runyon Canyon block a few hundred times. They will know a good accountant, as well as the best way to get rid of a body (oil drum, hydrochloric acid, rinse, repeat).

I hope I have sufficiently bludgeoned you with useful information. Stay smart, stay safe and hold onto your pants.

*All information in this blog is not meant to take the place of consultation with an actual professional, such as an accountant, lawyer, etc. etc. Use at your own risk.

Shame, Expectations and Unnecessary Suffering

I was on the verge of tears--not at sad news though. At happy news, good news, welcome news. These, however, were not happy tears, I'm dismayed to report. These were more like tears of frustration--frustration over unnecessary suffering.

I'm sure none of you were ever like this, but as a child, I was fully capable of making myself unhappy--of denying myself good things like forgiveness, hugs, even pastry, because I was determined to be miserable, no matter what. There's a pride of grief, of unhappiness, of cutting off your nose to spite your face, because it's MY nose dammit, and I'll do what I please with it. Let the noseless rejoice in their sweet, if unsavory, suffering. 

Of course as an adult, my suffering is much more refined now, if still as unnecessary as ever. For one, there's procrastination, which many agree is a fine, even dignified form of suffering. You suffer, you suffer, you get the work done--and then the suffering ends, and you're left with nothing but emptiness where the suffering once was. 

Then there's the suffering of extremes, the rushing from one pole to the other in a frenzy of self-abnegation. Pick a personal fault, any fault. Perhaps you are prideful, insensitive, egotistical--sometimes. Generalize this fault into an all-encompassing final word on the nature of your basic character. You are arrogance itself. Criminally insensitive to other people. You are flawed to the core, and somehow, it feels so right to be so wrong. Tears. Abasement before God and perhaps other people. It all makes sense now. And this suffering will save you from yourself. 

And let's not forget the suffering of standards and expectations, your own and others', that you will never be able to live up to. Ever. The kind of things where you fail before you even start. Where you can never make him or her happy, no matter how hard you try. And even if you make that grade, get into that school, land that job, they will never be proud of you. And even if they were, it still wouldn't be enough. The kind of standards where you're tempted to say, screw it. Forget it. I won't even try. But even then, the bitterness rises up inside of you. And you suffer. 

And what about the suffering of miscommunication. Missed communication. Message not received. This one, perhaps, eats me up most of all. You spoke, but I was not listening. But I heard you say--But you never said--And I never bothered to ask--Because to ask, for clarification, for reassurance, for love, is to admit vulnerability. To admit that I need you. That I need. All that I wanted was there for the taking. I had only to ask. But I did not ask because I did not want you to know how much I wanted to ask. I would not risk even that one moment of vulnerability, because I would rather you see me as self-contained and complete, needing nothing, no one. 

Which brings me to the suffering of self-sufficiency. Some people, and I don't admit to knowing anyone like this, would much rather suffer than ask for help. Would much rather risk isolation than rejection. Let's be real here. There are certain types of martyrdom that are very highly regarded in our society, the most socially accepted of them all probably being martyrdom for your job, your career, your art. My art is my life, you say. Nonsense. You are not a paintbrush. Your life is your life. No one, not even God, is asking you to suffer for art. 

That's the problem with suffering though. It can feel so good. So noble. Soul-cleansing even. It's like eating vegetables--this tastes so bad it must be good for me. 

But is it necessary?




Sources of inspiration:

http://peterrollins.net/?p=3739
The story of Hannah as heard at http://www.churchinhollywood.com/#/sundays/podcasts