When you work for yourself the IRS expects you to pay taxes quarterly — not just once a year. This is called estimated taxes. Miss them and you get penalized.
Self-employment tax is 15.3% on top of income tax. But here's what most people don't tell you — half of that is deductible.
The number one mistake new business owners make — mixing personal and business money. Open a separate business checking account the day you start.
This protects your LLC liability shield, makes bookkeeping simple, and looks professional when clients send payments.
A contract doesn't need to be fancy — it needs to state what you'll do, what they'll pay, and when. That's it. Free tools like HelloSign or DocuSign handle electronic signatures.
Invoice immediately upon project completion. Net 30 terms mean they have 30 days to pay. Chase at day 31.
Your price should cover: your time + your expenses + your profit margin + self-employment tax. Most beginners forget the last two.
Formula: (Hours × Hourly Rate) + 30% for taxes + 10-20% profit margin = Your Price
You don't need a perfect website to start. You need: a domain, a simple one-page site, and one social platform where your customers live.
For most businesses: Google Business Profile is free and puts you on Google Maps instantly. Set it up today.
Your first client is probably someone you already know. Tell everyone what you do. Post about it. The people who know you are your first marketing team.
After that: Upwork, Fiverr, LinkedIn, local Facebook groups, cold email, and referrals from satisfied clients.