7 ms·

I started Surreal CMS 10 years ago. By far, my biggest fear was how to setup a business, taxes, etc. It’s actually quite easy. I’m in the US, but from what I’

I started Surreal CMS 10 years ago. By far, my biggest fear was how to setup a business, taxes, etc. It’s actually quite easy. I’m in the US, but from what I’ve read below, it’s very similar to the UK. I think people get confused about the types of businesses and how they’re taxed. For a one-man show (and even some larger businesses) an LLC is probably the easiest way to go. With an LLC, your business taxes are passed through to you. Instead of filing taxes for yourself AND your business, you’ll just file once and include a Schedule C for the business. Makes things a lot easier. It’s a bit different in each state, but setting up the business is a matter of searching for a name (usually done online) and submitting a couple of forms. Once you’re “approved”, you’ll receive Articles of Organization. You’ll also need to get an EIN number from the IRS. You can do this online in minutes and print it out. Take all this to bank and you’ll be able to setup an account. Now you’re in business. After that, the only really complicated thing is taxes. You’ll need to pay quarterlies, and the amount is estimated from what you’ve made and what you expect to make. Once you have revenue, I 100% recommend hiring a CPA to help with this. They’re not as expensive as you think. (I was doing my own taxes with software for a couple years. Then I hired a CPA and she saves me more money than I pay her each year.) That said, until you actually have something earning revenue, you probably don’t need to start the business yet. Here in the US, you can operate as a sole proprietor. The big drawback here is your personal assets aren’t protected, but until you have customers you probably aren’t worried about that. I probably just made it sound more complicated than it really is, but I promise, once you get through the intial setup you’ll think, “what was I ever worried about?” Just keep in mind that this is my experience as a one-man show. More complex business structures should probably consult with an attorney. My takeaway is this: starting a business is easy. Running it can be tough sometimes, but it’s one of the best decisisions I’ve ever made and it’s extremely rewarding. Best of luck! Edit: fixed typos

bobblywobbles 7y ago
We've talked before- I really enjoyed your earlier HN posts on Surreal CMS and the experiences/challenges you've faced (and overcame). My really big questions are when it comes to the taxes. I know I'll need some provider to take in payments, but then how do I report this properly to the IRS. Your explanation gives me some insight how it can be done for one-man shows. So you say the CPA helps you file all of this? Or do you do the quarterlies by yourself and go to the CPA with this? What about all the legal? As a one-person business, I imagine it's too much to understand all the legal rules w/o consulting with an expert.
- claviska 7y ago
  > So you say the CPA helps you file all of this? Or do you do the quarterlies by yourself and go to the CPA with this? Every year, I bring my invoices, receipts, etc. and my CPA figures out what I owe and handles all the details and the filing. Then she estimates my quarterly taxes and sends me "bills" before they're due. I basically write a check and I'm done. A good CPA will meet with you when you get started to coach you on what things to keep track of (e.g. invoices, receipts, mileage, etc.). > What about all the legal? As a one-person business, I imagine it's too much to understand all the legal rules w/o consulting with an expert. For more complex businesses, maybe. I've never had an issue. If you're really worried, consider getting a prepaid legal service as cheap insurance.

bobblywobbles 7y ago

We've talked before- I really enjoyed your earlier HN posts on Surreal CMS and the experiences/challenges you've faced (and overcame). My really big questions are when it comes to the taxes. I know I'll need some provider to take in payments, but then how do I report this properly to the IRS. Your explanation gives me some insight how it can be done for one-man shows. So you say the CPA helps you file all of this? Or do you do the quarterlies by yourself and go to the CPA with this? What about all the legal? As a one-person business, I imagine it's too much to understand all the legal rules w/o consulting with an expert.

claviska 7y ago
> So you say the CPA helps you file all of this? Or do you do the quarterlies by yourself and go to the CPA with this? Every year, I bring my invoices, receipts, etc. and my CPA figures out what I owe and handles all the details and the filing. Then she estimates my quarterly taxes and sends me "bills" before they're due. I basically write a check and I'm done. A good CPA will meet with you when you get started to coach you on what things to keep track of (e.g. invoices, receipts, mileage, etc.). > What about all the legal? As a one-person business, I imagine it's too much to understand all the legal rules w/o consulting with an expert. For more complex businesses, maybe. I've never had an issue. If you're really worried, consider getting a prepaid legal service as cheap insurance.