If you are a tax preparer, lawyer or accountant - Stop laughing: They didn't know this!
The first shock newly self employed Solo's find out is that they still have to pay Social Security and Medicare.
Quick heads-up and kicker: The amount to set aside from whatever you earned in your business to cover the SE tax is: 15.3%. If you are in that 28% tax bracket (like someone else I know, single, no dependents, and pets are not tax deductible) then this can really add up.
What you will ultimately pay as a solo entrepreneur and self-employed small business owner will be determined at tax time, the total legal deductions you take and so on. Talk to your tax preparer or accountant to get a handle on this for 2007.
What's Love Got To Do With It! Tina Turner Had This One Right.
Are you in a loving relationship? Is this the first relationship you've ever had?
Reality Check: How willing are you to give half your business to someone you kiss 'good night'? Unless you have something in writing, you are putting everything you are working for at risk.
Married: Your non-working spouse will be entitled to some form of compensation in a divorce and your business assets could be sold off to satisfy the gleam in your ex's eye. My suggestion: Do your best to not piss him or her off!
Your business attorney should be able to recommend someone who can keep you from leaving the courthouse in your drawers with a sign on the back reading – Lost In Love. Kick Me!
Single: You are definitely NOT safe! Palimony laws did not stop at California's borders nor is Common Law Marriage off the books in some states. In the US, your idea of who can get part of your hard earned business income can be a walking nightmare. Check this site and read what it says about “Common Law Marriage” and here for Palimony.
The best suggestion about protecting yourself and your business from tramps (deadbeats or sue happy customers) and thieves (family and former friends) is to speak with a lawyer about having some agreements drawn up. Not very romantic but the time to do this is before you need it.
Why did I tell my former colleagues to stop laughing - because we would see this at least once every few years: An otherwise intelligent small business owner turning into jell-o because an ex-friend, ex-lover or jealous neighbor turned on them.
This person's entire life is turned upside down and the accountants are there helping the opposition attorney (bet your ass they have one) clean out the business accounts! It's not a pretty picture. Cynic? You betcha!
That's it for now. Promise, I'll be in a better mood next time and I'll leave you with this
A little knowledge that acts is worth infinitely more than much knowledge that is idle - Kahlil Gibran
