One of the big benefits of working for yourself, working from home, and becoming self-employed, is the ease with which you can set up and start to run your new business. If you have a plan in place, or some work lined up, you can do it all pretty quickly, especially for an online-based business. You can also become self-employed at the same time that you are working for an employer, so you have the time to decide if your home-based business is going to work for you and while you build up a client base. But when you do start to work from home, whether part-time or full-time, there are some important things that you need to plan in and tackle, so that everything is above board. So with that in mind, here are some of the things that you need to think about when you decide to become self-employed.
Business Bank Account
As someone who is self-employed, your income from the work that you do will be taxed alongside your personal tax. So with that in mind, it is really important to keep your business records and things like your finances separate from your personal things. So for that reason, getting a separate bank account for just your business transactions is a good idea. It helps to make filing taxes simpler, as well as help the business to look professional. Simply because when someone pays into your account, you pay someone, or you send a cheque, the business name will be on there, rather than your personal name. So it can make a difference. If you’re likely to need to hold cash for some time as part of the business, then you should also open a business deposit account so that you can get a little interest on your money.
Tax Returns
There are to things that are inevitable in this life; death and taxes. And when you are working for yourself, you will still be required to pay taxes. The only difference is that you have to work it all out yourself, rather than an employer doing all of that for you. So keeping records is really key, as well as putting money aside each month to go towards your tax bill. You don’t want to end up with a tax bill that you can’t pay, otherwise, you might have to get the help of a tax attorney. So take time to make sure that you are on top of your finances, keep records of invoices, payments, bank statements, and so on. It will then make the process much more straightforward. You can also work with tax companies like H&R Block too to avoid any errors.
Get Insured
When you are in business, you will be required by law to have a particular insurance policy in place. You will need insurance for a number of reasons, but the kind of cover will depend on the kind of work that you do (not to mention the peace of mind that having insurance can bring). Most small businesses will take out public liability insurance, especially if you have customers that might visit you, or you are an interior designer and you do work on other people’s homes. Professional indemnity insurance is if you offer advice or professional services, which will help if a client wants to sue.
I bet lots of people forget abut insurance – great list! #kcakols
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short and informative. Not enough homeschooled parents have a voice. Useful tips. Thanks
I’m glad that you liked getting a homeschooled parents input.
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Very useful post for anyone thinking about setting up in business. x #KCACOLS
I’m glad that you found these tips to be useful.
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Excellent advice. I’ve been self employed for a number of years now and keeping those finances separate is definitely key as is getting your tax return done in time #KCACOLS xx
I completely agree with you. It’s a vital thing to make sure one does.
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Great tips. I have been self employed all my working life. And keeping a separate tax bank account was always my best tip for success. #KCACOLS
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Separate business account really good advice #KCACOLS
I’m glad that you agree that this tip is vital.
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Some fantastic advice for anyone taking the leap into self employment! #KCACOLS
I’m glad that you liked the advice. I hope it helps you or someone you know in some way.
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This is great advice for people who want to go self-employed. Thanks so much for linking up at #KCACOLS. Hope you come back again next time
Great tips you have here. Thank you for sharing. Pinned!
#kcacols
I’m glad that you liked the tips.
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Ah the less exciting but must do things of being self employed, it’s not all just glamour and going it alone with flexi working. #KCACOLS
Lol. Yes, unfortunately, we have to cover the mundane annoying parts of being a self-employed person.
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You have just about covered everything, I used to be a self employed registered child minder and worked in the tax office before having a family#kcacols@_karendennis
Neat! Those are great skills to have under your belt and you can easily pick them back up once your little ones are older should you decide to.
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Excellent advice here. Just returning with #KCACOLS xx
Glad you liked it. It’s always a pleasure to see you visit us.
I’m one of 3 partners in a business and have to do all of the above.
Great advice. #KCACOLS
The worst thing in the UK is that you should keep books for 7 years at least! Best to stay on top of it #KCACOLS
this is such a great list and a good reminder for anyone starting out! #KCACOLS