| One of the biggest, and most unpleasant, surprises to | | | | and determine if you meet the criteria for quarterly |
| face the newly self-employed is the higher level of | | | | filing. Financial professionals are often the best source |
| taxation that often comes with that self-employed | | | | of specific tips for starting a consulting business and |
| status. When you are working for someone else, your | | | | running that business effectively, so do not overlook |
| employer shoulders a great deal of the tax burden | | | | the expert advice your CPA can provide. |
| that accrues from keeping you on the payroll. But | | | | You can also run the numbers yourself during the year |
| when you leave the nine to five world and strike out | | | | by purchasing a tax preparation software package |
| on your own, that tax burden falls completely on your | | | | designed for small business use. This will make it easier |
| shoulders, and if you do not budget your money | | | | to prepare your taxes and determine how much you |
| carefully you could end up short of cash when tax | | | | are likely to owe the IRS at the end of the tax filing |
| time rolls around. While there are many specific tips for | | | | season. |
| starting a consulting business, all too few of those tips | | | | As a small business owner, you do have the ability to |
| center on the unpopular subject of taxes. | | | | make the tax bite a little less painful. There are a |
| That is why it is so critical for new consultants, and all | | | | number of excellent retirement plans designed |
| self-employed individuals for that matter, to budget | | | | specifically for self-employed individuals like consultants, |
| carefully for the taxes they expect to owe. Putting | | | | and the contribution limits on those plans are quite |
| aside one third of every dollar you make as a | | | | generous. While in the beginning you will probably need |
| consultant may sound excessive, but in fact it is just | | | | every penny your business brings in, once the business |
| good business practice. Every time you receive a | | | | gets going and the money starts rolling in, you can |
| payment from a client, immediately put aside one third | | | | minimize your taxes and maximize your tax savings |
| of that payment in a special savings account you will | | | | by putting money in a qualified retirement plan for your |
| use to pay your taxes. Try to find a quality money | | | | consulting business. Among the most important specific |
| market account so you can at least earn some | | | | tips for starting a consulting business are the tips that |
| interest for setting that money aside. | | | | help you spend less on taxes and more on growing |
| As a new consultant you might also be required to | | | | your business and securing your financial future. |
| make quarterly income tax payments, instead of | | | | It goes without saying that few among us enjoy |
| paying your taxes once a year like you did when you | | | | paying taxes, and it is certainly true that the tax burden |
| were working for someone else. The best way to | | | | often falls disproportionately on the self-employed. But |
| determine if you will have to file these quarterly tax | | | | it is also true that with the right tax planning and |
| returns is to check with your certified public | | | | preparation, you can reduce the tax bite and help your |
| accountant. He or she can analyze your own situation | | | | new consulting business thrive. |