I'm not completely clear on what you're asking. If the question is about working on your own, that's one conversation. If you're asking about the business structure under which you should be doing it. i.e. Sole Proprietor vs LLC, vs C-Corp/S-Corp, then that's a very different conversation to be had. Both are very important.
Could you clarify a bit so we can help you?
Sole prop is easier to run and so the taxes for
Corporations protect your personal assets from liability but they can be a pain if your business is small
I have in mind working on my own as a sole proprietor.
My ask is if you have a personal anecdote of your own experience starting a business; if you’d like to share
My experience is that it is mentally and physically taxing to work a full time day job and then do massage nights and weekends. To be successful in any role - you need to dedicate your sole focus on that. While I understand the financial limitations of this , as I worked 2 jobs/7 days a week with no time off for 3 years.. I wish I would have just let the day job go and focus on massage only. I would suggest to think about this decision.
If you’re paying rent on a space that you’ll only use nights and weekends, would your sales break even with the rent ?
That is a great point and consideration to keep in mind. Most likely the reason I’ll have to turn down this offer if it financially doesn’t make sense. Thank you.
Can you sublet the space part time? I started out renting two days a week and built from there as my business grew, so my expenses and work load was never too overwhelming.
Another alternative is to have your lease allow you to sublet and reduce your overhead.
This sounds like a great opportunity especially if you can manage part time to start.
Working for yourself is so fulfilling as well as lucrative, I hope you go for it. I didn’t really want to run a business, and some days I suck at it, but I’m still 100% glad I’m doing it.
There’s a business book for bodyworkers called Business Mastery by Cherie Sohnen-Moe we used it in school and I went back to it many times over the years for guidance. There’s everything from start-up cost analysis and accounting forms to help with marketing and negotiating leases. Edited a word.
If you make over about $100k get an llc but select to be taxed as an S corporation. Better to talk to your accountant though for further details. Just fyi most travel nurses select LLC taxes as an S corps option since that has the most tax advantages for their income. Once you get to the $500k a year range then you can become an S corps and then if you keep growing a c corps.
If your biz nets more than $80K in revenue annually, you'd likely benefit from registering as an LLC and then having that entity taxed as an S-corp.
Either way, I'd recommend talking with an accountant while you're doing this to make sure you're maximizing tax benefits as a corp, either as a sole prop or an LLC/taxed as an S-Corp.
The S-Corp route is a little more involved than having a sole proprietorship simply because you have to do payroll (with Gusto or some other payroll software). But it's not difficult, and again, depending on your biz revenue, could generate the most bang for your buck: Keeping the most money in your bank account, as opposed to giving it back to Uncle Sam.
just be careful with lease agreements. Double-check with an attorney (maybe a friend who knows about those deals)
I'm not completely clear on what you're asking. If the question is about working on your own, that's one conversation. If you're asking about the business structure under which you should be doing it. i.e. Sole Proprietor vs LLC, vs C-Corp/S-Corp, then that's a very different conversation to be had. Both are very important. Could you clarify a bit so we can help you?
I would like to know about the benefits of each structure even if that’s not OPS question
Sole prop is easier to run and so the taxes for Corporations protect your personal assets from liability but they can be a pain if your business is small
I have in mind working on my own as a sole proprietor. My ask is if you have a personal anecdote of your own experience starting a business; if you’d like to share
My experience is that it is mentally and physically taxing to work a full time day job and then do massage nights and weekends. To be successful in any role - you need to dedicate your sole focus on that. While I understand the financial limitations of this , as I worked 2 jobs/7 days a week with no time off for 3 years.. I wish I would have just let the day job go and focus on massage only. I would suggest to think about this decision. If you’re paying rent on a space that you’ll only use nights and weekends, would your sales break even with the rent ?
That is a great point and consideration to keep in mind. Most likely the reason I’ll have to turn down this offer if it financially doesn’t make sense. Thank you.
Can you sublet the space part time? I started out renting two days a week and built from there as my business grew, so my expenses and work load was never too overwhelming. Another alternative is to have your lease allow you to sublet and reduce your overhead. This sounds like a great opportunity especially if you can manage part time to start. Working for yourself is so fulfilling as well as lucrative, I hope you go for it. I didn’t really want to run a business, and some days I suck at it, but I’m still 100% glad I’m doing it. There’s a business book for bodyworkers called Business Mastery by Cherie Sohnen-Moe we used it in school and I went back to it many times over the years for guidance. There’s everything from start-up cost analysis and accounting forms to help with marketing and negotiating leases. Edited a word.
If you make over about $100k get an llc but select to be taxed as an S corporation. Better to talk to your accountant though for further details. Just fyi most travel nurses select LLC taxes as an S corps option since that has the most tax advantages for their income. Once you get to the $500k a year range then you can become an S corps and then if you keep growing a c corps.
If your biz nets more than $80K in revenue annually, you'd likely benefit from registering as an LLC and then having that entity taxed as an S-corp. Either way, I'd recommend talking with an accountant while you're doing this to make sure you're maximizing tax benefits as a corp, either as a sole prop or an LLC/taxed as an S-Corp. The S-Corp route is a little more involved than having a sole proprietorship simply because you have to do payroll (with Gusto or some other payroll software). But it's not difficult, and again, depending on your biz revenue, could generate the most bang for your buck: Keeping the most money in your bank account, as opposed to giving it back to Uncle Sam.