How to Avoid Unnecessary Tax Problems When You are a Self Employed Person

When you own your own business, it can be one of the most rewarding things that you can do with your life. Working for yourself without having the boss standing and looking over your shoulder all the time is a dream come true. But, when you are independent and self employed you are going to run into a whole different set of problems, one of the main ones would be learning how to take care of your business taxes in the right manner to avoid getting into hot water with the IRS.

When you own your own business not only are you expected to file the same old same old 1040 for an income but you will also be expected to fill out two additional tax forms. One is called Schedule C which is basically a profit and loss form and then there is the Schedule SE which is basically a self employment tax form. The Schedule C form is a form that allows you to put your business in a category and then allows you to be able to itemize all of your income as well as all of your expenses for the year. The SE form simply helps you figure out the taxes for self employment.

It’s a pretty unfair practice since you are being taxed double, but to avoid the IRS being on your back you need to do your best to take care of this. Even if what you are doing is just a hobby, if you happen to earn more than $400 in a year from that hobby, the IRS expects you to pay a self employment tax form.

When you are self employed you need to be able to budget yourself so that you can pay taxes on a quarterly basis. If you don’t set up a regular plan to pay quarterly you will discover quickly that the IRS will add penalties for what they consider are late payments. The IRS doesn’t care if you work for an employer who pays the self employed taxes or if you are the self employed party, they just want their money, or what they perceive to be their money.

Probably one of the biggest errors that the self employed make is the simple fact that they forget to put aside enough money each month to be able to cover their taxes from the money they have earned each month. You need to have to have a lot of discipline to be able to do this on your own, but to be able to be successful at being self employed you need to learn this kind of discipline. It can be quite tempting to spend all of the money you earn and forget about those taxes that are waiting for you at the end of the quarter. Remember it this way, when you worked for someone else you never were allowed to take all of what you earned home with you, so it unfortunately needs to be the same way when you work for yourself. The best thing you can do is take out a reasonable percentage say at least 25% of your earnings and sock it away for taxes


Employment Tips to Finding Job Opportunities

It can be difficult to succeed in finding a job with the state the economy is currently in, especially when you are qualified enough to take on a higher paying position. Whether you’re looking for employment in the town in which you’re currently living, if you’re willing to commute, or if you want to work from home, there are a few tricks you can use to make finding jobs easier. Here, we’ll take a look at a few easy ways to boost your chances of getting a good job, regardless of where you’re looking.

If you’re looking for local jobs, there are more resources at your disposal than just the classifieds. Many cities now have job hosting websites that allow business to post new positions and job seekers to access these positions for free. Some job websites allow you to upload your resume for easy application, and the jobs listed can range from minimum wage employment to high-level management positions, freelance jobs to apprenticeships. Many of these job centers allow you to filter results by industry, pay level, and type or length of employment. Local job fairs often have a huge variety of positions available as well, and keeping up with these events through newsletters is a good way to have lots of available positions at your disposal.

If you want to work from home, the internet always has a variety of positions open from around the world, many of which allow you to telecommute, or send in your work electronically. Many of these jobs are on a freelance basis, but that isn’t to say that they can’t provide long term employment – while you are technically contracted and not a part of the company itself, some jobs will provide you with repeated projects for as long as you or the company desires. These jobs are frequently are in the areas pertaining to web development or marketing, and have positions for anyone skilled in programming, writing, graphic design, and marketing.

Having a solid resume is key to finding a job that matches your skills, and you should frequently update your resume with your new experience. Whether you are trying to find jobs online or locally, having a portfolio is a great way to showcase your work, especially if you are in one of the creative industries. There are various websites that allow you to store your work electronically, allowing you to easily organize hundreds of different articles or images into neat galleries.


Self Employment Tips

Many people has ventured into self-employment as a necessity due to the economic recession. Even though there is no guarantee to self-employment success, there are ways to increase the odds and feel comfortable. One of the important factors for success is doing something you understand and love doing.

Running a business of your own is a very hard job, it is therefore imperative that you like the business you will be performing. Loving your business is a crucial element for success. It could be very difficult to start a business or do something you know very little about. Before you start any business you must research and gain as much knowledge as possible about the field, then decide whether to pursue it or not.

Apart from reading books or articles on the internet, interview people who are already doing the business and relate to then either as mentor or role model. Be polite to them when interviewing them and with luck you might come across some who are willing and proud to talk about their business and their achievements.

Work Harder to be a Step a Head of Others

Self-employment is a hard work and the key to success may lie in working harder than others. One valuable asset is maintaining work ethic, this will help to effectively eliminate certain segment of your competitors. Discipline and self-motivation are important requirements for the self-employed.

You must learn to work smarter which also means work efficiently and this is derived from knowing yourself, know the time and condition when you are at your best. Some people are at their best with background noise while others function better in an atmosphere of complete silence.

Find the Least Expensive Way to do it

As a beginner you must find the least expensive way to do it without making cheap product. Make and sell a product you believe in because this will put you in a better position to defend and talk about it with passion. Research and find ways to perform on a budget.