CheckEmoji Community · the emoji forum
🏠 Home 🆕 What's new ❓ Unanswered 🔥 Popular 📡 RSS Members 👥 0 online
log in · register
Home › Society › Economy › Business, Accounting & Taxes › Starting a small business

Starting a small business

Started by Justin Walker24 · · 👁 47 views · 1.1K replies

📡 Subscribe to replies

Participants Justin Walker24AMegan Chavez38Elizabeth Miller8Aaron MendozaRobert KimEric Martinez2Kenneth RobertsSophia Gonzalez6shadowjackal88vividstag31redscout61Robin Rodriguez5Nicole Morales3Chris Ruiz10coastalviper8Dana Miller6John Thomas2Steven Bishop2Jerry Martinez3Kevin White53Emily Ortiz25silentpanther15Dennis Lopez46 …
northernbear16 northernbear16 Newcomer
6 messages
joined Mar 2009
#341 ·
mistylynx5 said:As far as I can tell, nothing has actually been lowered. Starting next year, rates are going up to $574 across the board—pension, health, workers' comp, you name it. Then there’s the Chamber of Commerce fee, which sits at $88 every quarter plus an extra 0.40% of your income. And don't even get me started on the annual overhead: corporate taxes, local tourism levies, historical preservation fees, tax prep advances...

I suspect those costs apply to full corporations rather than sole proprietorships, let alone seasonal work...
northernbear16 northernbear16 Newcomer
6 messages
joined Mar 2009
#342 ·
Amanda Gonzalez4 said:Greetings to everyone, I am also in the process of launching a seasonal small business similar to yours, and my primary concern at this stage is whether I am legally required to hire any employees; since I already hold another full-time position, I intend to manage this venture in parallel entirely on my own without hiring a single staff member

Yes, I believe you can work entirely on your own and just handle your own tax contributions...
though I am wondering about one thing... if you already have a full-time job elsewhere, they are already handling your payroll taxes, right? So, maybe you wouldn't have to pay those exact same things again... It seems fine to cover other costs, like Chamber of Commerce fees or specific local business taxes, but paying the same social security twice seems unlikely...
analogfox24 analogfox24 Member
12 messages
joined Oct 2007
#343 ·
An individual is permitted to operate a small business as a side hustle, provided they meet the necessary requirements and already maintain an established
employment relationship through any standard means. In such a case, the business is managed via a manager who must strictly adhere to all the standards set forth by the Small Business Act.

A seasonal business may be operated for a maximum of six months within a single calendar year; during this window, the owner qualifies as an insured party—meaning they are only obligated to pay mandatory contributions for the duration that the business is actually active.
Contributions to the American Bar Association, tourism fees (though these don't apply to every type of business), and local municipal levies are settled on an annual basis.
Anthony Chavez6 Anthony Chavez6 Member
26 messages
joined Apr 2009
#344 ·
northernbear16 said:But how are you planning to handle the costs? $833Between health insurance and Social Security, plus everything else... I heard it could be anywhere from $1,400 to $1,700. A friend mentioned it used to be closer to $1,700, though maybe they lowered it slightly to $1,400 recently.
Also, if you apply to the unemployment office afterward, you might not qualify for benefits, or at least that period won't count toward your eligibility. It counts toward your retirement, sure, but not for unemployment... or for example, maternity leave wouldn't factor into the average calculation for women.
It’s just a complete mess...
Anyway, let me know, and thanks.
☕☕

Step inside, let me give you a real-world example—I’m currently running my own small business while on maternity leave. The kicker is that these benefit payments have absolutely nothing to do with what you actually earn; instead, they are based on the monthly taxable income base that the government sets for you at the start of the year. This rarely works in your favor—it's great when you're trying to keep your tax contributions low, but it's incredibly frustrating when you're actually relying on things like disability pay or maternity benefits.🙄
slydriver2 slydriver2 Newcomer
1 message
joined Apr 2009
#345 ·
Hello everyone!

So, I'm thinking about launching my own small business (service-based, specifically accounting and tax consulting) on the side. But I'm wondering if that's actually doable since I'm currently working on a contract basis rather than being a permanent employee at my firm...🤷

Thanks!
mellowfox56 mellowfox56 Active Member
94 messages
joined Mar 2012
#346 ·
slydriver2 said:Hello everyone!

So, I'm thinking about launching my own small business (service-based, specifically accounting and tax consulting) on the side. But I'm wondering if that's actually doable since I'm currently working on a contract basis rather than being a permanent employee at my firm...🤷

Thanks!

Well, look at that—another accountant joining the workforce!🙂
Of course you can. You're still an employee, so your current boss handles all your taxes and payroll deductions.
The only thing is, if you ever leave your current gig and don't land another job right away, you'll need to register your business to cover yourself. I'm sure you've already looked into that part.
silverbison293 silverbison293 Active Member
94 messages
joined Feb 2009
#347 ·
Besides that—even if they’re actually pulling a profit—as long as you're drawing an income, you still have to deal with self-employment taxes, Medicare, and all that other stuff... even if the company is already handling the transfers on their end... 😢
Austin Palmer2 Austin Palmer2 Newcomer
1 message
joined Apr 2009
#348 ·
I have a feeling we might be looking at a new setup where small business owners and independent contractors will also be responsible for paying their own contributions.
mellowfox56 mellowfox56 Active Member
94 messages
joined Mar 2012
#349 ·
Austin Palmer2 said:I have a feeling we might be looking at a new setup where small business owners and independent contractors will also be responsible for paying their own contributions.

That’s actually a different situation entirely. Dante clarified things for me when she asked about it: if you're an employee, your boss handles your Microsoft and CDC payments based on your salary, along with your FBI coverage. But if you run your own small business and stay fully employed there, you’re responsible for those Microsoft and CDC payments based on whatever profit the business pulls in, and the IRS will send you a bill for it.
A profitable small business owner pays their taxes based on a $7,672.50 gross amount, and they basically have two ways to play it:
1. Paying the Microsoft, CDC, and workers' comp (since hiring employees doesn't cover that part) based on that specific gross salary.
2. Deciding to just pay themselves a standard entrepreneur's salary of $7,672.50 gross, covering all the same contributions.
Thomas Hernandez16 Thomas Hernandez16 Newcomer
7 messages
joined Apr 2009
#350 ·
Are there any extra fees or contributions I have to worry about after those first 6 months are up?
Sam Reyes47 Sam Reyes47 Newcomer
5 messages
joined Jan 2009
#351 ·
How exactly does one distinguish between an income-based entrepreneur and a profit-based one?

I have to admit—I’ve never actually encountered those terms before.
mellowfox56 mellowfox56 Active Member
94 messages
joined Mar 2012
#352 ·
Sam Reyes47 said:How exactly does one distinguish between an income-based entrepreneur and a profit-based one?

I have to admit—I’ve never actually encountered those terms before.

Basically, if a small business owner operating on a gross revenue basis hits any of these triggers from the previous year, they have to switch over to standard accrual accounting and start issuing formal commercial invoices. Here’s what we're talking about:
1. If their total gross receipts last year topped $300,000.
2. If their actual net income was higher than $60,000.
3. If the value of their long-term assets exceeds $300,000.
mistylynx5 mistylynx5 Member
11 messages
joined Apr 2009
#353 ·
mellowfox56 said:Basically, if a small business owner operating on a gross revenue basis hits any of these triggers from the previous year, they have to switch over to standard accrual accounting and start issuing formal commercial invoices. Here’s what we're talking about:
1. If their total gross receipts last year topped $300,000.
2. If their actual net income was higher than $60,000.
3. If the value of their long-term assets exceeds $300,000.

Dubravka, is it still true that you're bumped up to corporate status if you average more than 15 full-time employees?
northernbear16 northernbear16 Newcomer
6 messages
joined Mar 2009
#354 ·
Anthony Chavez6 said:Step inside, let me give you a real-world example—I’m currently running my own small business while on maternity leave. The kicker is that these benefit payments have absolutely nothing to do with what you actually earn; instead, they are based on the monthly taxable income base that the government sets for you at the start of the year. This rarely works in your favor—it's great when you're trying to keep your tax contributions low, but it's incredibly frustrating when you're actually relying on things like disability pay or maternity benefits.🙄

I guess it depends, though—was your business seasonal or did you run it year-round? If it was just for six months, how do they even calculate the maternity amount? I mean, if we're talking about maternity leave specifically, what's the smartest move here? Should I just opt to pay higher taxes/contributions now to cover myself later?
mellowfox56 mellowfox56 Active Member
94 messages
joined Mar 2012
#355 ·
mistylynx5 said:Dubravka, is it still true that you're bumped up to corporate status if you average more than 15 full-time employees?

Yeah, as long as during the previous period you were hiring on average more than 15 workers.
Jeffrey Sullivan8 Jeffrey Sullivan8 Newcomer
6 messages
joined Oct 2011
#356 ·
Hello,
I have a full-time job, but I also dabble in farming on the side.
I'm wondering if it's feasible to set up a small agricultural business, and what the overhead looks like. Since I'm already employed, I assume my social security and health insurance are covered... because heaven forbid we try to collect a double pension or a double dose of penicillin.
coppermoose57 coppermoose57 Newcomer
2 messages
joined Apr 2009
#357 ·
I'm curious about what actually happens if a small business fails to notify the IRS within that initial 8-day window after they start operating.😍
Ronald Davis4 Ronald Davis4 Newcomer
1 message
joined Apr 2009
#358 ·
If you head over to the IRS with a completed tax filing and approach the agent with a polite, humble request to skip the fine, it won't work. There's no bending the rules here. For everything else, you're strictly bound by Section 207 of the Internal Revenue Code!

When was the business officially registered?
coppermoose57 coppermoose57 Newcomer
2 messages
joined Apr 2009
#359 ·
thanks a million 😁
Gerald King Gerald King Newcomer
3 messages
joined May 2009
#360 ·
What kind of business entity should I register if I'm launching a professional niche website that plans to monetize through ads—you know, things like banner placements and sponsored content...

You must log in or register to reply here.

Log in Register

🔗 Similar threads