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> you're stuck paying your own benefits (health insurance is the big one) Eh, do. > expenses (such as computers, phone, electricity, etc..) A new computer ev
by d23 13y ago
> you're stuck paying your own benefits (health insurance is the big one)
Eh, do.
> expenses (such as computers, phone, electricity, etc..)
A new computer every couple of years is negligible.
> taxes
Not sure why this would be any different. Were you not paying taxes when you were employed?
- TheCoelacanth 13y agoIn the US, if you are self-employed, you have to pay an extra 7.65% tax that would normally be paid by your employer.
- reboog711 13y agoIt is very different having taxes automatically taken out of your paycheck and having to remember to pay them automatically on a quarterly basis. Most people don't realize how big of a chunk gets taken out. And as was mentioned, as a self employed individual you also pay the "employer's" piece of Social Security which is an extra 7.5%. If you're incorporated there may be taxes related to that. I pay a yearly fee for the privilege of doing business in Connecticut. I also must file a yearly annual report with the state; which comes with a processing fee. I also pay property taxes on business property, such as computers and desks and chairs. My accountant has me list all of these. Many people go into sticker shock when I tell them to put aside 40% of their income to pay taxes.