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Old 12-14-2005, 06:43 PM
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jmjj215 jmjj215 is offline
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Default Re: Any small business owners here ?

Quote:
and I have no expenses
not worth it to keep track? I hear you there.

On the self-employoment tax (15.3%, 1.45% medicare, 6.2% social insecurity up to 90k as Sweep mentioned)...one thing I'm considering for next year is to set up my now-sole proprietorship as an s-corp. One big advantage of this is that I can then pay myself a set reasonable salary from the s-corp and I will have to pay the SE tax on that, but the rest of the profits are simply that - profits, and are not subject to the SE tax. At 15.3%, it's a no brainer.

Don't get bogged down with all the legal stuff right of the bat, especially with the taxes. Sole proprietorships are easy to run and do paperwork for. Keep good records of all expenses, remember your mileage. Focus on making some money!
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