Lesson #1: Health Insurance Options
This is a huge concern for most people when starting their own business. Fortunately, there are tons of options out there and much more affordable than you think! Plus, when you’re able to grow your income by outsourcing, it becomes a non-issue. Let’s talk about what’s available and what it’s going to cost.
- Take a look at the options listed in the above link.
- Narrow it down to a few that sound like they’d work best for your specific situation.
- Get some quotes for those on your narrowed down list and compare coverages and costs.
- Most of these are no more than $450ish for a family of 4. Compare it to how much you were paying out of pocket with your employer. It might be even LESS!
- Make efforts to stay healthy by eating well and exercising.
- Get a 23andMe test done.
- Run your results through these programs…
- Avoid habits that harm your health.
- Educate yourself on natural remedies and implement them whenever possible.
- Take charge of your health!
Lesson #2: Taxes & Bookkeeping
This is my least favorite topic, so I saved it for the end. 🙂 It’s a certainty in life, just like death. It doesn’t have to make you tear your hair out though! In fact, there’s never been a better time to start a business because new tax laws are allowing businesses 20% of their annual profits to be TAX-FREE. There’s some more good news, but we’ll talk about that in this lesson’s video.
**Starting in 2018**
Businesses will pay taxes on only 80% of profit vs. 100% if you’re an employee!
The standard deduction for married filing jointly couples is DOUBLING.
The Child Tax Credits are DOUBLING.
- Starting a business will put MORE money in your pocket.
- If you’re married with kids, you’re getting even more.
- When you’re just starting, you can use a bookkeeping program like Xero or Freshbooks.
- Feel free to steal my expense tracking spreadsheet here. – Just make a copy and save it on your own drive.
- If you hate bookkeeping (raising my hand) you can outsource it to Bench.co – this especially makes sense once you’re earning over 40K per year.
- If you’re just starting you can use TurboTax to file your taxes. They do have a decent step-by-step process for business owners and they offer audit protection.
- It’s best to pay quarterly, or at least set aside your estimated taxes in your business bank account. This is tricky to figure out, but be on the safe side and aim for 20% of your profits. It’s ok if you don’t pay quarterly, as long as you’re ok with paying a large sum all at once.
- It’s best to consult a CPA for all tax advice and do not take my word for it. I’m not a certified CPA so my advice may not work for your specific situation.