When you’re self-employed, you become your own human resources representative, office manager, and accountant: here are 5 valuable tips in how to manage it all! The finances can get complicated—especially come tax time! A little preparation will set you up for financial success.
Not sure whether you count as self-employed? According to the IRS, you’re self-employed if you meet any of the following conditions:
You’re the sole proprietor of a business, meaning you run an unincorporated business on your own.
You’re in a partnership that conducts business, such as an LLC.
You operate your own part-time business whether or not the business makes a profit. The IRS considers any activity with a “profit motive” a part-time business, as long as you’re working to further the interests of the business by purchasing supplies or seeking customers.
You’re an independent contractor. What’s a contractor exactly? An independent contractor is defined as someone whose client or payer can only control the results of the work, not what work will be done and how. Accountants, lawyers, doctors, dentists, and veterinarians are examples.
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