4 Things People Don't Tell You About Being Self Employed

Are you thinking about starting your own business and entering into the world of self-employment? This can be a fantastic decision and a wonderful opportunity for the typical worker. It will mean that you will be able to avoid having a boss breathing down your neck constantly and guarantee that you have a high level of career independence. You have probably already spoken to people who are self-employed themselves and they might be telling you just how thrilled they are that they made this decision. However, there are a few details they might leave out that you should be aware of. Let’s take a look at some of the key points here. 

The Tax Man Cometh 

One of the crucial points that people often forget when they start their own business is that they are suddenly responsible for paying taxes for a company. Now, you might think that this is just like paying your personal tax, however, it’s not quite that simple. Paying business tax can be quite complex and a lot of new business owners slip up here. For instance, you might need to fill out a 1099 form if you are using independent contractors in your business and if that’s the case you could require a 1099 tax calculator. 

The big danger here is that you underpay on your tax. If that happens, you can bet that you will be visited by the IRS at some point. The problem is that people accidentally underpay their tax for years and then when the IRS does arrive they are faced with a massive bill that they can’t possibly afford. It can cripple a company and cause closures. This is why it might be worth using a professional service to manage tax payments in your new business. In doing so, you can avoid this hurdle completely. It can be worth paying a little more to ensure that you get a professional service too. 

Legal Woes

Some business owners believe that avoiding legal trouble with their company is simply a matter of not breaking the law. To an extent this is true, however, the line between legal and illegal in the business world might be a tad more blurred than you think. Indeed, it’s possible that you cross over that line without even realizing it. This is due to the fact that regulations and laws are constantly changing and it can be difficult to keep up.

It’s also worth noting that a lot of legal regulations are not designed to be understood by the typical layperson. Some require a law degree to fully comprehend all the ins and outs of the regulation in question. Take data protection as an example. If you’re trading internationally, you need to understand the different regulations for parts of the world. Companies were given two years to prepare before the GDPR was officially introduced. For many, this still wasn’t enough time. 

That’s why you do need to hire a legal consultant and ensure that they are able to assist you whenever the needs may arise. This will keep you on the right side of that legal line at all times. 

You’ll Need To Outsource 

Assuming your business is quite small, it’s important to manage your spending effectively. One of the best ways to do this is to make sure that you are using outsourcing solutions. Outsourcing simply means that you pass off areas of your business to other companies and let them handle things for you. The benefit of doing this is that you won’t need to worry about expensive costs. Instead, you can keep things under a tight level of control. If you choose the right company, you will also be able to access a high-quality service. This is important because customers won’t know you’re outsourcing. So, if there are any issues with quality, they’ll blame you directly. 

Time Management And Productivity 

Finally, you might be thrilled by the idea of not having a boss pushing you to complete deadlines or make a sale. However, there is a benefit to this type of set up. It helps ensure that you remain productive and reach a high level of potential each day. Without a boss, the responsibility for ensuring this happens will fall squarely on your shoulders. It’s easier said than done too, particularly if you are working at home. As such, it’s important to make sure that you do plan out a schedule for each day and each week. Set measurable goals to ensure that you remain on the right track with your new company.