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Being self employed brings a lot of unique challenges to your door. There’s everything you have to do yourself i.e. inventory, marketing, running your store from behind the counter, etc.
As well as coping with the competition on personal scale, and you’ve got your taxes to file.
Taxes is something a lot of us tend to fear, only because we often don’t know what’s out there that we actually have to pay.
When it comes to supporting your own business, getting every financial aspect sorted out from the get-go is often the key to success.
It is what your business is going to revolve around after all, and bringing in a profit can only happen when you know how much of that money you’re going to have to pay out in return.
So if you need the help, here are some tips on the taxes you’re going to have to follow.
Self Employment Taxes Apply to You
And usually, that’s all you have to pay. If you’re someone who works for yourself, and you have a business that’s owned and operated by you, the self-employment criteria are all you have to apply for.
Of course, it can be extremely confusing as to whether you need to only enter data regarding the self-employment section of your tax return, or whether you should fill out something in the employment section as well, but a business will tend to fall under the former only.
You’re going to have to pay medicare at the very least, and contribute towards social security as well; these make up the ‘self-employment tax’ as a whole.
You can check with an online advisor or a helpline if you’re confused at the moment, and have all your financial records on you.
This way, the idea of hiring a defense attorney for federal crimes will be the last thing on your mind. Don’t worry, we all think about the solutions we could afford should anything end up taking us to court!
Look Out For Deductions
As a small-time business, especially since you’re working for yourself and yourself alone, make sure you know about the deductions you can use to make some good money back on your tax return.
Thankfully, when you are a solopreneur, you’re going to be able to claim back much more than anyone else on the face of the earth.
No matter if you’re based at home or elsewhere, you can claim back a good portion of the rent you have to pay during business hours. As well as things like heating and water.
Really, it makes the most sense to move your business back home if that’s not where you’re already operating, as you can get the most return on your investment this way. No point trying to waste money in your need for expansion!
If you’re a solopreneur just starting out, make sure you’re on the straight and narrow with taxes.
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