Tips for the Self-Employed

Running a business is the hardest job you can have. Unlike many attorneys, I have experience running a business, so I know the questions and obstacles business owners face firsthand, in addition to the legal requirements they must meet.

Owning a business is one of the greatest, most fulfilling ways to achieve the American Dream. Here are some tips you should find helpful along the way:

Use a Payroll Service even if you have no employees. Many payroll services will process your payroll, remit your taxes and file your quarterly tax returns for a very low fee.
Use a CPA to do your business tax returns. You will be surprised to find out that a CPA does not cost much more than a tax preparer. Spend a little more and use a real professional.
Have a separate bank account for your business. This will help you track income and expenses. Failure to have a separate bank account can result in legal problems.
Do not pay personal expenses from your business revenues. Doing so will cause legal and tax problems.
Use a program like Quicken to keep track of your income and expenses. These programs are inexpensive, and they will save hours on gathering tax information for your CPA.
Do not go into debt for any reason. Use your profits to operate and expand your business.
Look into group health insurance for your family. If you or a family member cannot obtain health insurance due to a pre-existing condition, you may be able to get coverage through a group insurance policy purchased by your business.
Grow your business slowly. Many have gone out of business by expanding too quickly.
Keep your business expenses low. Shop around for big expenses such as equipment and office/shop space.
Be ready to work much harder than you did when you were an employee. Pick a business you love, because you will be married to it.