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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.
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.
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.