Teach me about self employment

I have never been self employed and could use any advice, suggestions or pointers you could share with me. Any help is much appreciated!

 

well, I guess the easiest way to start is by asking u what u are doing for work?

 

I recently completed all of my training and exams to be a home inspector. Trying to move forward on it asap now that I have completed the training side of it all.

 

I'm a CPA so I talk with a lot of people who are considering being self employed. The first thing that comes to mind is that your payroll tax will double immediately. So to make the same money as you would as an employee you need to have deductions that exceed that increase. Also, as you grow and potentially add employees, do your self a favor and find a good CPA and bookkeeper. Nothing beats self employment but it comes with much more stress and risk.

Feel free to pm me with any additional questions.

Good luck!

 

Congradulations! The first thing is to work on getting ur name out there. Make up some cards and meet up with any and all of the real estate agents u can. Ive had many people suggest to me in the past to post adds in the paper ect, but I never did. Not to say that it wont work, but I know many people that have gone that route with minimal success. Marketing is most likely gonna be ur biggest issue getting started. U cant beat word of mouth, best way to get work hands down

 

My overall tax rate will double? How exactly do I report earnings to the irs?

 

Thank you. Still trying to nail down a name for the new venture. Soon as I do I will get the cards and brochures printed up. Then I will be out meeting the local agents.

 

That all depends on rite-offs, and income

 

Scott find a good accountant and they can walk you through the steps you need to take with the state and the fed and explain all of the benefits to owning a business. They can set you up as an LLC or a Sole proprietor. Something that covers your assets. Then you'll need insurance that's pretty self explanatory. If you have employees then you have more on your plate. Then comes the marketing side Get your name out there web site, business cards, talk to Realtor's maybe even create a flyer to send out to people who apply for mortgages in your area. Then the rest is up to you selling your goods

 

Keep the name simple something with home inspection in it to make it search friendly.

 

Whatever you think you are going to have on hand and need for operating capital....double it

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You will do fine, and never lock back, Just remember your best asset is your honesty and the second is your word, hold them both to the highest standard and you will do fine.

 

Very good advice!

 

The peaks are higher and the valleys are lower. But it is worth it.

Until well established, live modestly and save for a rainy day, because there will be one...or two. Business can be streaky. You might get 10 jobs in a short period of time and then nothing for awhile. When you get a windfall, save it rather than spend it.

Look into setting up your business as a Subchapter S Corp. Designed for small business, it gives you the legal protection of a Corp.without double income taxation.

Make sure you carry at least $1 million in liability insurance. You can have all the disclaimers in the world written in your contract, but it doesn't stop someone from suing you. Sometimes they are frivolous nuisance lawsuits. Your insurance company will pay your attorney fees in such case.

Double creek is referring to payroll tax not income tax.

Good luck...life is an adventure...

 

When my dad started out (general contracting), he did exactly what was suggested earlier; hired a CPA, formed a LLC and got tight with the local real estate agents. He relied mostly on word-of-mouth and had some nice decals made for his work-truck. He also undercut all the competition's prices for the first few years. Once he established a solid foundation (customer base), he was able to bid more accordingly with the market. Now he works 8-9 months out of the year... hunts the remainder

He would also tell you that if you're going to be a one man show, get on the wife's med/dental/vision coverage!! (if at all possible).

Good luck brother! You got this!!

 

Check in with your local Chamber of Commerce. See if you have a local "SCORE" program. If so, they will have mentors that will help you with all aspects of setting up and running a business. The best part, its all free.

 

Not exactly... Payroll taxes, which are social security and Medicare, are 15.3% of your income. Employees only pay 7.65% and the employer pays the other half. Self employed individuals are responsible for the full 15.3%. So an employee making $50k will end up with more take home money than the same self employed person that makes $50k. It's gets more complicated than that, but that is a brief overview.

You will report your business income on Schedule C of your 1040.

 

Also, depending on what your current expense reimbursement is, you could probably benefit from self employment deductions such as cell phone, home office, vehicle, etc.

 

Thanks guys you have given me a lot to look into. Anything else you guys could pass along from personal experience would be great as well.

The only write offs I currently get with my employment is any tools or safety equipment I purchase and mileage when I work what is considered out of town.

 

I would add radon mitigation to your repertoire.