I've recently went out on my own as a sole proprietor. There are some really neat things about it such as certain items I need that I can write off. I just wrote my first quarterly check for taxes. $7,900 and I wonder how many people get to sit at home and collect on that. It is what it is. I had been holding back more than I needed and still dumping some into savings. This quarter I over estimated by around $4k. I am going to write myself a nice end of the year check if I keep it going. It's definitely been quite the learning experience. The one that baffled me is I had to put an ad in a local magazine for two consecutive weeks announcing my business. What a waste of money. It is the government though.

Wait until your CPA tells you that you doing so well, that you now support 2 or 3 families each year by way of your NE taxes.


I still remember the Mrs. after that Omaha meeting years ago.
She told the CPA that although she didn't require it or even want it, a thank you note woulda been nice.

It's wonderful. You get to pay into Unemployment Compensation but are not eligible to collect a dime. It's basically work or starve for you while many live off of what you pay in. You get to match your employees SS deductions but will never see a dime of those contributions.

When first starting out you get to work 12-16 hours a day and act as boss, labor, secretary, bookkeeper, regional sales guy and estimator.

Seriously though, I enjoy it and wouldn't trade it for anything I can think of.

Federal income tax, state income tax, school and property tax, sales tax, excise tax. In the end approximately 50% of GROSS income will support our gouvernment.

Are you still in the medical field Wade? The hospital where the little woman works is paying a $750 bonus per shift to get nurses to work nights on weekends in a cov** unit. That's some real money! I've heard the same is going on in Ft Smith Ark.

When I went out on my own back in the 80's I was nearly overwhelmed by all the IRS/Michigan tax paperwork. I'd always done my own taxes, but that QUICKLY changed and I got a "tax man"! I went through several of them before settling on a CPA from a big firm in a downstate city. It was pricey, but holy crap did that guy save me a bunch of my own money. I just kept track of the "in" and "out", and recorded what each "out" was spent on.......the CPA took my notebook from me when I got there and we talked hunting and fishing while he clickity-clicked away on a computer/adding machine type deal. After about an hour he would tell me how much each check was (or refund) to be made out for and where to sign his paperwork and I was soon on my way! I still pay the guy to do my and the Brides returns.

I hope it all works out for you Wade! Owning your own business brings its own challenges, but for me there is nothing better than being your own boss and the freedom that comes with it. Yes, we typically work longer hours than most, but if I want to take off on a Friday and go fishing, I do it.

Many nurses down here are leaving their hospital jobs and becoming traveling nurses; they are saying that they can make as much as $4500/week with this change and also don't have all the long and overly demanding hours. On the news daily they are talking about how hospitals are strapped and there are no ICU beds available. The reality is that there are beds available, but the hospitals don't have the nurses to staff them as a nurse can only handle so many beds. Lot of talk about these issues going on right now on the local news, and not real sure what is actually causing the nursing shortage.

I wish you the best! Chancey

Luckily Lugnut I am in the medical field so I have a pretty set schedule. I don't have any employees I am the only employee. It is weird writing yourself a check every two weeks but I have to make sure the government has a record of their cut. I do have a little book keeping I do generally it's mileage and saving my gas receipts. The other expenses are pretty standard and I can factor them in pretty easily. I worked for 12 years in the emergency department or overseeing the hospital I previously worked at. Now I've dove into primary care and I can honestly say I've never been happier. I work 8-330 Monday-Thursday and I am off at noon on Fridays. I am employed by an S-CORP but they offered no benefits and pay me straight cash so it was a no brainer to start an LLC. It was quite a culture shock taking on a practice with over 3k patients but it's been a heck of a ride.

My wife is sole proprietor of our business, and it has been the best decision we have made. I still work full time for the Feds, as I have too much time invested. She quit her job, and works full time from home on the business, and raises our daughter. She has taken off multiple times to go on vacations with her family, something she wouldn't have been able to do if she was still working for someone else. Yes, it sucks paying so much in knowing you'll never see a dime of it returned. However, we make exponentially more having our own business, allowing us to save more than if she was still working a regular job. And yes, we do work longer hours. But they are hours that are convenient for us. Good luck on your venture.

Federal income tax, state income tax, school and property tax, sales tax, excise tax. In the end approximately 50% of GROSS income will support our gouvernment.

That statement in most cases is grossly wrong.
Example 300K of income 240K of expenses (including the sales tax on purchases and RE tax) leaves a 60 K profit. SSI is 12.95 % as you get a credit or roughly $7,800 with 27,000 for itemized deductions your taxable income is 33K federally or at 12% about 4K. Here in WI we have a 7% state tax or about $2,100 then add in the sales tax and RE say 5% on all of the 240K which makes 22,000 with 10K of RE or a total of roughly 32K or about half of your net not half of your gross. If you are paying 50% of gross you need a new CPA

As to being self employed why do all who own a business still want to compare their work to those that work by the hour? The whole idea of being self employed to me is about getting out of that rut. So you work harder that is the decision one makes. Thank God we have millions who take the risk and provide us services and don't look at the rest who don't as lesser.
Bryce

I sure am Gary, I've gotten away from the wild medical field and am enjoying relaxing primary care. There is some serious money involved when you're facing Covid every day. They're earning it. Here locally I've heard new graduated nursing staff making $30 an hour base with sometimes as high as $20 an hour more for shift differential if they pick a shift up (on top of the overtime made) and they have a referral bonus of $5-10k I can't remember which. The healthcare system in hospitals is definitely taxed right now. I talked to a physician at the ER I used to work in that called every hospital in Nebraska, Kansas, and Iowa to find an ICU bed one night as they were full with no ICU beds. That patient spent a night in the ED as an ICU patient. The problem is going to be when this levels out everyone is going to be used to those wages. It won't last forever.

Yeah I should have said net. Used to a business with little expenses. Gross, net, and net net. lol
Cash is king!

It's really fun when the city I have a contract with suddenly after 31 years requires me to have a Workers Comp policy, even though I'm not required by the state to have it since I don't have any employees. As the business owner, I can't even use it.

Now the Workers Comp folks are doing an audit on my policy, and it's been going on for weeks. They'll ask for this, I'll send it, then they'll ask for something else, and I provide it, then it's something else. I'm about ready to drop this small contract. This is pure stupidity.

My CPA is worth her weight in gold. She's got access to my business account and does all of the payroll etc. I just have to look over the numbers and give her the okay to make the necessary changes. She also isn't cheap but in the long run including what I factor in the time it would have taken me to do it all I am clear ahead.

Been in business since 1983 and was fun until recently when no matter the pay people just aren’t interested in working especially hard. Why should they I guess.

Paul. I do work for one of the largest road contractors in the interior. Every job they get that possibly needs our service I get a contract, Alaska requirement. I then have to provide a certificate of insurance and sign the contract. I may not do any work though so all that for no compensation. Not all jobs are that way though. My wife and I are a S Corp. And every year we have to sign a waiver to NOT be covered under Workmans Compensation.

The CPA I have used for years used to fly Heimo Korth back and forth to his cabin for years. He is also an avid fisherman. Being a great CPA and from a pioneer family takes time to visit.

When we first opened our business I was shocked at the cost of payroll tax.

Owning a business is fun but it’s hard not to feel like the deck is stacked against you

I know the road too... but try to make the most of pre-tax spending. When you own a small business, many things you never thought about are part of how you make your business.

Funny how Google and the likes can run fancy restaurants on their campuses and write it all off as an expense, yet when I buy a sandwich and try to eat it in my store, then get up to help a customer, I can't do the same thing.

Good luck,

Pete

Awesome , carry on.

Welcome to the business world huh

Luckily Lugnut I am in the medical field so I have a pretty set schedule. I don't have any employees I am the only employee. It is weird writing yourself a check every two weeks but I have to make sure the government has a record of their cut.

I run a small residential construction and remodeling company and also a property management company. When something needs repaired or remodeled in an apartment building I manage, Ludwig Property Management calls (figuratively) Ludwig Construction. I do the job, Ludwig Construction invoices Ludwig Property Management and I pay myself instantly via bank transfer between the accounts associated with those two entities.

It's a pretty sweet arrangement.

I was only half serious in my previous complaining, i really do enjoy running these businesses, especially now that I'm well-established and have a large customer base. Also, as someone above mentioned, there's a lot of freedom involved with being your own boss.

Workers Comp is the worst. I have been audited several times. It's the main reason I scaled way back on the amount of employees I used to have and now use sub-contractors for a lot of jobs.