Self-Employment

» Liviutzu - self employed

after i become self employed what do i have to do?
what taxes do i have to pay?
what is gone happen if i don't any money left in my bank account?

-- posted by Liviutzu

Permalink Print Discussion Email Discussion How to subscribe to feeds

» KC Morgan - self employed

In response to self employed posted by Liviutzu:
It's always a good idea to have some money saved up when you're ready to take the plunge into self employment. What happens when you run out of money? Well, worst case scenario you can't pay your bills. You don't get to eat. You lose your home. When you rely on yourself alone for income, lots of things could result. That's why you want to be really sure you can handle self employment before you leap. Check out this article on getting started.

As for taxes, they're always hard to do - even when you aren't self employed. The difference is that, when you work at home and work for yourself, clients and customers aren't going to take income taxes out of the money they pay you. This means you have to claim income in the spring, when it's time to file income taxes with the government. You'll need to keep records of all the money you receive. In some cases, regular clients who purchase work from you will provide you with tax forms (usually a 1099) that shows the amount of income you received. Then, all you have to do is process these forms. Other times, however, you'll have no official forms. That's why you HAVE to keep records of every penny you earn, and every penny you SPEND on self employment. Keep receipts. Did you buy a new ink cartridge for your printer? Stamps to send out letters? Paper? Keep the receipt! When you're self employed, you can claim these things as business expenses, and hopefully save yourself from paying out a lot of income taxes at the end of the year. Read this article for tax advice.

Permalink Print Discussion Email Discussion How to subscribe to feeds