| This economy has spurred many to strike out on | | | | has a good payroll function, but complicated |
| their own because their income decreased, their | | | | payroll issues can take a lot of your time. |
| employer closed down, or they were laid off. | | | | In regards to payroll taxes, do not use the |
| Whatever the reason, here are some tips: | | | | government as a bank. This is so common in |
| The first question I ask a married person starting | | | | small business. I have seen businesses pay the |
| their business is, "What does your spouse do for | | | | net payroll, but not the taxes withheld. Be very |
| a living?" The first 1 or 2 years can be tough, and | | | | careful, because criminal penalties can arise if you |
| that second income can be the difference | | | | spend the money. |
| between you closing your doors, or seeing year 3. | | | | Insurance? Don't forget. It could mean the |
| If your spouse can shoulder the major financial | | | | difference between you paying a deductible of |
| burden for a year, try reducing her salary tax | | | | $5,000 or losing your house. |
| withholdings. Your income will decrease, thus | | | | How are you planning to market yourself? This is |
| creating a smaller tax liability. | | | | a constant effort. Start by looking at other |
| Do you know what kind of legal structure you | | | | professional organizations that compliment your |
| want? Sole proprietor, C Corporation, S | | | | business. For example, I only go to CPA functions |
| Corporation, LLC? If you have a partner who is | | | | for continuing education. I prefer to meet at |
| the money person, and have unequal distributions, | | | | lawyer's functions, contractors, entertainers, and |
| an LLC may be your best structure. | | | | other persons that I can introduce myself for |
| If you are a professional, what restrictions are | | | | additional business. |
| there imposed by the licensing board on your | | | | If you are hiring employees, check the workers |
| choice of entity? | | | | comp rates. In manual labor businesses, this |
| How is your overall personal debt? If it is high, | | | | seems to be a large chunk of the budget. |
| you may want to pay it off before making the | | | | A few other tips are to budget your |
| leap. You will need cash for your business. Cash is | | | | expenditures, create a web page, and match your |
| king. | | | | costs to your job. There are many things to |
| How are you going to issue payroll? QuickBooks | | | | consider. |