How to Turn Self-Employment into a Small Business
Self-employment is booming, both in the United States and around the world. No matter where you live, it’s becoming increasingly common to work for yourself. If you’ve built a great self-employment job, chances are strong that it’s just going to keep getting bigger. To capitalize on that growth, you might want to start looking into hiring employees and turning your self-employment into a small business. There’s no better time than now to start your own small business. However, before you jump into starting a small business, be sure to do these things first.
Work Out Tax Information
Small businesses are taxed in an extremely different way than a self-employment job. If you’ve been doing your taxes based on self-employment for many years, you may not be ready to change the way you do taxes. While you’ll still be filing taxes as usual by April 15, you’ll be filing an entirely new series of tax forms. If you’re not running a law company, it’s likely that you don’t know a lot about these taxes. And the last thing you want to do is be audited because you did something wrong.
In general, a small business will benefit highly from an actual tax preparer. Your personal self-employment taxes may have worked just fine with an online tax program, but there are plenty of important details that a tax program may brush over. In addition, many tax forms use extremely difficult-to-understand language, making it easy to accidentally misunderstand something and input incorrect info. So, when you prepare to make the move to a small business, make sure you budget for tax season.
Hire People You Trust
Large corporations simply post an opening for new employees, and then do interviews once they’ve screened applications. In reality, the hired employees have very little pull in these large entities. The employees you’ll be hiring, however, will have a lot of importance in your small business, so do some extra work when screening applicants.
About 30% of the labor force is either self-employed or made up of employees working for self-employed individuals. However, small businesses run by self-employed people tend to be extremely small. In 2015, self-employed people only had a median of three employees. It’s very likely that the people you hire first will be working very closely with you. (After all, with only three employees, you’ll all have to take on some of the important parts of running the business!) So, you want to make sure that those you bring on share your passion about and goals for the company you’re starting.
Always Stay Safe
Some businesses merely provide services over the internet and therefore don’t have many security concerns. However, plenty of businesses make money in other ways. If you’re selling items on peer-to-peer sites such as OfferUp or Craigslist, for example, you may have to meet up with people regularly, and it’s a good idea to make sure you’re staying safe when making transactions. There are plenty of ways to do this, but an easy and affordable option is PeopleFinders.
PeopleFinders is a people search engine that can provide you information about millions of American adults. While you cannot use the service to screen employees, if you’re selling items online, you can use a criminal records check to check the past of your customer. And if you’re getting phone calls from someone that’s interested in sponsoring you or investing in your business, you can use the reverse phone search to make sure the person is legitimate.
Changing your self-employment job into a full-time small business can be a great move. It can allow you to extend yourself far past what you can do on your own. And your business’ income could support your family well into the future. However, while it can be a great business decision, it’s not a decision that should be taken lightly. There’s working out taxes and other finances, hiring employees that care for your new business as much as you do, and vetting customers and vendors.
It’s a lot of work to get a small business off the ground. But odds are, you will find that the freedom and potential financial rewards are worth it.
Photo Credit: mavoimages – stock.adobe.comTags: Criminal Records, Legal Issues, Reverse Phone Lookup
Categorized in: People Data