I think I'm going to do it!

[eeboater]

I've been doing computer consulting work on the side for about 3 years now. I have a regular 40 hr/wk job that keeps me plenty busy but I like to take the consulting jobs to keep me on my toes knowledge wise. <br /><br />I just spoke with another small business owner and she gave me a few pointers on how to make myself "Legit" and have my own business. I think I'm going to go for it and officially start my business. I've been wanting to do this since I was about 14 or so when I got my first taste of working at my Dad's consulting company.<br /><br />Should be pretty exciting. Hopefully some day it will turn into a full time job!<br /><br />Sean

 

[12Footer]

Re: I think I'm going to do it!

Go for it! It sounds like you may have more experience than most in that field have. Good luck.<br />Keep an eye on your six for the IRS. They love to take buisnesses out by the back door.<br />It's a hobby of thiers.

 

[SoulWinner]

Re: I think I'm going to do it!

Going into business for ourselves was the BEST thing we ever did. Taxes will really blow, but the benefits of self employment FAR outweigh the taxes and self insurance expenses! Congrats!!! We wish you the very best!

 

[Boomyal]

Re: I think I'm going to do it!

Good luck EE. IMHO, you are exhibiting one of the most laudable American characteristics. Proud of ya!

 

[eeboater]

Re: I think I'm going to do it!

Tx Guys. Boom, its funny you mention that. The only reason I haven't done it earlier is because of the Feds. I have been afraid that I would screw up on my taxes and have the Feds going *knock knock* on my back door. <br /><br />I can't wait. I'm only 25, so I have a LOT of time to work this thing out.<br /><br />Sean

 

[62_Kiwi]

Re: I think I'm going to do it!

Yep, go for it eeboater! Sounds like the situation I was in many years ago. My computer hobby turned into my job and my job turned into my business. Never looked back or regretted it.

 

[jtexas]

Re: I think I'm going to do it!

eeboater, when I was doing tax returns, the one thing that caught new business owners off guard was self employment taxes. They come to me in April after their first year of self-employment, you should of seen the look on their faces when I explained why they owe so much.<br /><br />You have to pay the both the employer and employee share of social security which is about 15.3% of your business' net income. That is in addition to your income tax.<br /><br />You don't have to be afraid of IRS. The big accounting firms take the best candidates, big businesses take the next best and so on. IRS gets the guys who barely graduated, couldn't pass the CPA exam, didn't get offers from anybody else. And those whose life ambition is to be a petty beaurocrat. If there's any IRS agents who also happen to be boaters, you are the exception so please don't take offense!<br /><br />Just don't be sloppy with the record-keeping. Open a separate bank account for the business & use it only for business. Deposit all your revenue there so there'll be a record. Get a separate credit card & use it only for business Get some kind of accounting software, Quicken or Quickbooks works just fine. Pay all your expenses with a check, debit or credit card so everything will be documented. Keep a log for your car mileage.<br /><br /><br />Go for it!

 

[eeboater]

Re: I think I'm going to do it!

Tx jtexas.<br /><br />That is the first thing I'm doing is opening a separate bank acct, getting myself a copy of quickbooks, and sitting down with an accountant. In your honest opinion, out of each check I receive as payment for my services, how much should I put aside for the feds? I was told 40% is a good number to go with. Is that grossly high?<br /><br />I'm not going to have a lot of expenses because I already have all the equipment needed to do this job (its all in my brain) but people are telling me I should come up with ways to have write-offs. <br /><br />Sean

 

[beezee28]

Re: I think I'm going to do it!

Good Luck... Part of your american dream came true!

 

[cmyers_uk]

Re: I think I'm going to do it!

A good tax accountant will save you more than they charge get one on personal recommendation. They will have you writing off things you wouldnt have thought possible.

 

[jtexas]

Re: I think I'm going to do it!

If your accountant said 40% and you're wondering if he's crazy, all I can tell you without knowing anything else is that 40% is grossly high, but unfortunately might not be far off the mark. That would be 15% for self-employment taxes & 25% for income taxes. <br /><br />A service business like yours, no office, no labor costs, business expenses will be greater than $0, but maybe not be more than 20% of revenue.<br /><br />You want one of us to reach out and give you a good shake if we notice you spending so much time on iboats that it interferes with earning a living? It's what we're here for!

 

[brother chris]

Re: I think I'm going to do it!

Originally posted by 12Footer:<br /> .

I really like you quote at the bottom of your bio 12Footer. Something to remember!