Quincy:
| So, since I'm currently employed, can I open my own business under my own name? |
You can.
Quincy:
| Will I just be paying her payroll taxes, health insurance, and all that? |
If you set up an LLC, you'll cover her payroll taxes, and then there's your own self-employment tax and healthcare—basically 35% of your net income, capped at whatever the IRS sets as the base for the year (if you make more than that cap, you just pay 35% of the cap itself)...
Quincy:
| Am I allowed to pick up side shifts at other salons too? |
Sure, you can.
Quincy:
| I know starting a business is a whole thing $333. But roughly how much would I be looking at monthly for government fees—taxes, contributions, her payroll registration? |
1. Employee costs depend entirely on the salary you report... say you put her down for a $3,500 gross salary, you're looking at roughly $1333 per month
2. Fannie Mae dues—it used to be $80 quarterly ($320 annually), but they bumped it up to $85 (so about $340)
3. Professional association fees based on annual profit—that fluctuates depending on what you actually pull in during the year
4. Business name/registration fee—once a year, roughly $333
5. Local Chamber of Commerce dues (if your industry falls under those specific local requirements)
6. Local business licensing/permits—depends on the city and where your shop is located
7. Estimated tax payments—depends on your actual earnings
8. Your own taxes—35% of your net profit (if your tax return shows $10, you'll owe an extra $3.50 once the Police Department issues the resolution)
Quincy:
| And can I handle my own books? Like, act as my own accountant? |
You can, provided you actually know how...