No doubt about it—being self-employed doesn’t come with a manual. Navigating income, expenses, taxes, and deadlines while keeping your business afloat is a challenge. To simplify the basics, here are 5 tips for Self-Employed Professionals:
1. Tidy Up Your Books
Keep your records current, reconcile accounts, and ensure all incomes and expenses are accurately logged. It’s easier to manage on the fly than scrambling when tax deadlines loom.
2. Stay on Top of Taxes
Don’t wait until the last minute and face a hefty IRS bill. Avoid the April surprise! Pay your taxes quarterly to avoid late filing fines and the stress of a big bill.
3. Distinguish Between Needs and Wants
Avoid overspending. Ensure you have enough to keep your business operational. Before making a purchase, assess if it’s a necessity or just a temptation.
4. Consider Incorporation
Transition from a sole proprietorship to an LLC! Benefit from legal protection and the credibility that comes with incorporation. It’s time to take your business seriously.
5. Opt for S-Corp Status
Unlock the advantages of being an S-Corp. Embrace significant tax savings, corporate perks, and more by filing for S-Corp status. Enjoy the benefits it brings to your business and your life.