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Author: glennandpaige Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 14985  
Subject: Re: Biggest Mistake Being Self-Employed Date: 6/14/2005 12:21 PM
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I agree with everyone, if you wait until you're slow to market business, it's too late. You should always be marketing.

My first thought is, no matter how little/much money you bring in, make SURE you are saving for taxes. The first year we made so little, we didn't save a whole lot and got slammed with a tax bill. Fortunately, we were able to scrape it together, but it wasn't pleasant. I know, when you are starting out, you need the money to live on. But save enough for taxes. Additionally, most non-self-employed people don't realize that self-employed people pay 12% in social security, NOT the 6% that everyone else pays. That's because you don't have an employer to pay the other half. If you incorporate, the corp pays one half and you pay the other (we are sole prop). I now save 20% of every penny that comes in the door and that should be more than enough. If I have money left over, good, extra saving. But I wish I had done that the first year.

Good luck. Going out "on our own" was the BEST thing we EVER did. Also, we did not have a dime saved. Husband couldn't take the job with a law firm any more (no, he's not a lawyer), so I said quit. He did and we started up. Nothing to motivate you like the threat of homelessness and starvation, eh? LOL. That was six years ago and all is well now. Again, good luck.
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