Quit My 9-5 At the End Of Month!

Hello BHW!! My name is Tara and I'm new here but I been in the marketing world for a bit. I use to always be on warrior forum and bought every shiny object there was... NOT no more!

I started a business 6 months ago and every month revenue is growing. Anyways, I gave my 2 weeks (more actually) and call my 35K job a year goodbye at the end of this month...ya!!

I'm Nervous but hey I have to take a chance where my passion is. Tomorrow I'm going to register my business at legal zoom. Questions for you tax gurus

- I have 1 business I really focus on but other adsense websites that make money. What do people usually call there business... I'm not going to name it lose weight LLC

- Should I register for a LLC, sole proprietor? Does any of those save more on taxes?

- I'm going to buy quicken self employed... looks pretty easy. Once I register do I have to pay quarterly? In the beginning I took a lost on my company but know I'm gaining profits... can I claim the lost?

- How much self employed tax will I have to pay in Rhode Island? Right now I think I'm paying like 5% because my husband and I work.

- Last year I brought home 34,580 gross. What will have to be my take home pay weekly with my business after taxes to make that. The way things are going in the last 6 months I will take home more then that this year!

WOW! Sorry bout all that... I will be surprised if someone answers this

Tara

 

Welcome neighbor! I am in MA.

I would suggest that you talk with an accountant about taxes because self employment will be more since you need to pay for both sides into SS etc... we don't know your husband's salary or your deductions so it is hard to say. You should check and see if you need to pay quarterly or stay at yearly for now. Totally depends on what you both are bringing in etc.. too many variables to count.

Congrats on leaving your job! Huge decision.. I did it last year and never looked back.

 

Good luck on your new endeavor, honestly I would consult with an accountant on this. There is no worse place then on the bad side of the IRS .

Again good luck, and I look forward to seeing a journey post!

 

Well my husband takes home 46K gross. Couldn't I just claim myself for my business? I will be the only employee. I don't mind going to the accountant... just what the heck do I bring. I signed up for quicken self employed and its easy so far and it exports your taxes to turbo tax. In the beginning of the business I was in the negative column with cost, contractors etc.

 

You are realistically just going to an accountant/book keeper for a consultation. You want to know exactly what forms you need to send in when.

 

Talk with an accountant and please do yourself a favor and wait at least until you have been in business for 12 - 18 months with the same income as you have now.

 

Typically when you name a company for example - Lose Weight LLC - You can drop the LLC at the end when attempting to sell to people. Just make sure you are not ripping off anyone elses name & brand identity.

An LLC would protect you from personal liability in the event of a lawsuit, when you incorporate a corporation it is a separate entity from you and therefore if you were to get sued and the corporation was to go under your personal assets would be protected & separate from the company. Registering an LLC shouldn't make save in taxes as opposed to a sole proprietorship - but in a sole proprietorship you would be personally liable if you were sued and could lose all your assets and go personally bankrupt as well as corporately.

 

I have several niches and businesses I would like to work on... I just notice some people name their business seoworld LLC, jMac LLC etc. If I want to focus on not just once business should I use my name, initials for LLC? Thanks

 

Thanks... well I have plenty of savings and my husband salary which isn't the most but my business will probably do six figures gross... I think making 35K to 6 figures is time to focus more on my online business.

 

I think what he meant was markets change quickly, whats popular now might not be in 1 year. I would continue working on your niche, but don't settle for just that branch out. Research other markets and find the next big thing.

 

Very true. I'm in the everlast niche, but I know what you mean. Thank you!

 

First of all, congratulations on your success!

Second of all, I'd like to echo the people recommending that you talk to a professional. If you're serious about this being your full time job then you need to be willing to invest in yourself, with one of the most important investments being advice from relevant financial and legal professionals.

There's a lot of great information available for free online, but are you willing to bet your life on what you get from a forum?

 

I agree! I called a local accountant for next Monday. I just like to ask for people's opinions since I know many people on here have successful businesses. I been working for the same job 9-5 for decades and know after all the hard work I finally made a business for myself that I'm passionate about. I'm just nervous about taxes, if something does happen to my business. I mean my gross salary is around 35K a year and know I had so much success I'm aiming for 6 figures gross... geez how much am I going to owe! In the beginning when I started I took a lost with supplies, contractors, stupid mistakes, etc. so hopefully that is a take break. I know I will for the 1st time see 6 figures gross but that will not be my net. Thanks all

 

Ugh...I want to answer all of this, but going to have to default to the old...."consult an accountant" line. I can tell you this. You can name your business whatever you want. You will have a unique EIN. I pay quarterly now, easier to take it out and not worry about it. Your revenue isn't all that much, so you can estimate. If you have a corp, you don't have to pay self employment tax. In PA it's fucking outrageous (last time I checked it was 15%, but I corped up since then). Hence the reason you want to incorporate.

Depending on how you want to structure it, you want to pay yourself from your corporation. Then take distributions or dividends....shit sorry, already went to far. Go back to "consult an accountant".

Good luck. Glad to see you're doing well.

 

I don't believe the name would matter you should be able to use whatever you want.

 

Congrats on your success so far! Like everyone says seek an accountant. You can name your LLC whatever you want. If you're in the fitness niche lets say I wouldn't name it lose weight... something more generic. I seen people use their names, initials etc. Just in case you want to branch out and go in the animal niche. I use self employed quicken and I love it... I just export all my information to my accountant. If you are making close to 35K a year and your business is growing to 6 figures I personally wouldn't work a 9-5 job. Again, that depends on savings, family, health insurance etc. I don't know what you would pay in taxes being self employed but someone like @BassTrackerBoats seems like a expert at this stuff.

Again, if you have a business grossing 10K a month lets say and you make almost 3k a month at your current job... screw that I would be gone. Every job you work at your at "will" Good luck!