Starting a business is all about taking things one step at a time. One big step you’ll take is determining your business structure. But, this is a step you need to take ever so cautiously. Before you take the leap and make a business structure decision for your company, get to know the various entities like the back of your hand—and the pros and cons of each.
Financial and Accounting
Filing Your Taxes as a 1099 Only or a Combination of 1040 and 1099
If you made a payment during the calendar year as a small business or self-employed (individual), you are most likely required to file an information return to the IRS. Receipt of certain payments may also require you to file an information return to the IRS. Learn about information returns and more.
Best Practices for Separating Business and Personal Income and Expenses
Is it illegal to use a business credit card for personal expenses? How do I maximize tax deductions for the business use of my car? What’s the best way to track my expenses?
Accounting for Start Up Solopreneur Companies
How much money will it take to start your small business? Calculate the startup costs for your small business so you can request funding, attract investors, and estimate when you’ll turn a profit. The key to a successful business is preparation. Before your business opens its doors, you’ll have bills to pay. Understanding your expenses will help you launch successfully. Plus learn how to track and record your expenses.
Keeping Track of Business Expenses
Business expenses are an ordinary and necessary cost of running a business. Unfortunately, many freelancers make common business expense mistakes like not knowing what’s tax-deductible, forgetting to keep receipts or failing to have a robust expense tracking system. Learn the most common business expense mistakes and how to avoid making them.
Qualifying For a Mortgage While Self-Employed
The mortgage application process can be challenging for self-employed homebuyers when it comes to providing documentation. When applying for a mortgage, lenders will look at your credit history, the amount of capital you have, the type of property you plan to purchase and your capacity to repay the loan. This step can be complicated for homebuyers that do not have traditional income and employment. Here are a few tips to help you through the homebuying process if you’re self-employed.
Tapping into your 401k to fund your gig life
Depending on the amount of money you’ve put aside and the amount you need, there are two ways to leverage your retirement savings and bootstrap your business. If your business requires less than $50,000 to start and you have a solid repayment plan, borrowing your business’s startup funds from your 401(k) may prove a viable option.
Home Office Deductions for the Independent Worker
While more people have been working from home, not everybody will be able to take advantage of the home office tax deduction. If you work for an employer but also have a freelance side job or are temporarily self-employed, you can claim the deduction during the months you work in those positions. A home office tax deduction is a deduction that eligible workers can take if they have a dedicated in-home office space, which is strictly used for business.
Mileage Deductions for the Independent Worker
Learn about the laws surrounding mileage reimbursement so you can create a company policy that meets state and federal regulations. There are both legal requirements and business considerations to keep in mind when determining whether you need a mileage reimbursement policy and what it should look like.
Tax Reporting Obligations for Gig Workers
As an independent contractor, you can deduct reasonable and necessary expenses related to running your business. Tax deductions reduce net income, lowering your business tax bill. At your disposal are the same deductions available to any small business. Scan guides, comprehensive lists of deductible expenses, and tax responsibilities.
Working and Social Security
Social Security is commonly seen as a source of retirement income. But you’re allowed to work and take Social Security retirement benefits or survivor benefits at the same time. If you do so before you reach full retirement age, though, Social Security may withhold part of your benefits. Following are some links to help you understand how you can get Social Security benefits even while you’re still working. Learn how you can keep as much of that money as possible.
Creating Retirement Savings as a Gig Worker
In today’s economy, most Americans are looking into gigs that can support their lifestyles, their finances and overall income. Their economic situations tend to be as diverse as their work. Following are a collection of articles which address the challenges of retirement saving in the Gig Economy and the many benefits of a Solo 401k.
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