Thoughts on being self-employed

[Fungo Squiggly]

Long story short.....I've been offered the opportunity to purchase and take over an existing proprietorship effective very soon. I've pretty much made up my mind that it's something I need to do, but I thought I'd get some input from you always reliable douchebags around here on some of the benefits/drawbacks of running your own business that may not have occurred to me yet.

Here's what I've come up with so far...

I haven't fully examined how it will impact my income, but I'm more than willing to cope with a drop in income to get out of this stupid place. I've enjoyed being overpaid and underworked, but it does get tiresome ....eventually

Benefits
More flexible hours during large part of the year
More control
More responsibility
Not working for selfish, greedy, clueless, irresponsible douchelozzles
Fuller work days
Some opportunity to work from home - Much better work environment - less stress from work environment - more controllable stressors
Busy times would coincide with the wife's busy times

Drawbacks
More responsibility and stress from work
Much longer hours during a portion of the year
Health insurance (wife is also self-employed...can use Cobra for 35% of the premium for awhile thanks to you fine, upstanding taxpayers!)
Expanded areas of knowledge - not really my area of expertise right now
Less time on BP (I know most of you assholes will consider a decrease in my posting a benefit )
Longer, less-convenient commute
Dealing with more people
SE tax
No more free hockey tickets - thanks, jim.

I'm sure there are some benefits/drawbacks I've forgotten to list or haven't even thought of....any thoughts?

 

[Buckeyeskickbuttocks]

Tax consequences.

 

[jimotis4heisman]

Long story short.....I've been offered the opportunity to purchase and take over an existing proprietorship effective very soon. I've pretty much made up my mind that it's something I need to do, but I thought I'd get some input from you always reliable douchebags around here on some of the benefits/drawbacks of running your own business that may not have occurred to me yet.

Here's what I've come up with so far...

I haven't fully examined how it will impact my income, but I'm more than willing to cope with a drop in income to get out of this stupid place. I've enjoyed being overpaid and underworked, but it does get tiresome ....eventually

Benefits
More flexible hours during large part of the year
More control
More responsibility
Not working for selfish, greedy, clueless, irresponsible douchelozzles
Fuller work days
Some opportunity to work from homeMuch better work environment - less stress from work environment - more controllable stressors

Drawbacks
More responsibility and stress from work
Much longer hours during a portion of the year
Health insurance (wife is also self-employed...can use Cobra for 35% of the premium for awhile thanks to you fine, upstanding taxpayers!)
Expanded areas of knowledge - not really my area of expertise right now
Less time on BP (I know most of you assholes will consider a decrease in my posting a benefit )
Longer, less-convenient commute
Dealing with more people
SE tax

I'm sure there are some benefits/drawbacks I've forgotten to list or haven't even thought of....any thoughts?

doesnt your boss buy your hockey tickets?

 

[Fungo Squiggly]

Tax consequences.

Got it at the very bottom. Self-employment tax is an evil bitch. :)

 

[Buckeyeskickbuttocks]

Got it at the very bottom. Self-employment tax is an evil bitch. :)

I would have known that if I read your whole post.

Anyway, another thing to think about - if you take the opportunity my opinion of you won't change.

 

[jwinslow]

Have you worked from home before?

Who does the majority of the household duties? Cooking, cleaning, running errands, waiting on a repairman?

Do you have a separate room with an office to enter each day, or would you simply be in the same room/area as the rest of your time at home?

 

[Fungo Squiggly]

doesnt your boss buy your hockey tickets?

Damn good point. No more free CBJ tickets.

I would have known that if I read your whole post.

Anyway, another thing to think about - if you take the opportunity my opinion of you won't change.

I'm not sure if that's a benefit or a drawback.

 

[Buckeyeskickbuttocks]

I'm not sure if that's a benefit or a drawback.

It's a beneficial drawback.

Moron.

 

[Fungo Squiggly]

Have you worked from home before?

Who does the majority of the household duties? Cooking, cleaning, running errands, waiting on a repairman?

Do you have a separate room with an office to enter each day, or would you simply be in the same room/area as the rest of your time at home?

It wouldn't be working from home exculsivelt. I'd be taking over in an existing office for at least as long as the current lease. I may be able to work from home on occasion during the slow times, but that would be the exception to the rule.

I already do it to some extent with my work for the new company on my personal computer. If it became a regular occurrence, I would most likely need to invest in a dedicated computer and printer.

 

[jwinslow]

It wouldn't be working from home. I'd be taking over in an existing office for at least as long as the current lease. I may be able to work from home on occasion during the slow times, but that would be the exception to the rule.

That's good. Never truly "going to work" can be a real challenge for most.

I work from home and can vouch for the taxes being a pain (though better since leaving Dublin).

Being busy and being unavailable are two separate things. Would it be feasible for you to pick up something from the dry cleaners or make a quick grocery run before or after work? Or does Mrs. Katt vow to never trouble her man with such annoyances?

 

[Fungo Squiggly]

That's good. Never truly "going to work" can be a real challenge for most.

I work from home and can vouch for the taxes being a pain (though better since leaving Dublin).

Being busy and being unavailable are two separate things. Would it be feasible for you to pick up something from the dry cleaners or make a quick grocery run before or after work? Or does Mrs. Katt vow to never trouble her man with such annoyances?

Dry cleaners??? Cashmere or not, it goes in the washer.

It's a pretty even split on household stuff and that probably wouldn't change much. I take care of most cleaning, cooking, groceries when she's in her busy season and she takes care of must of it when she's in her slow season. We've talked about this quite a bit and she's full-go on whatever it takes to get me out of my current place of employment.

The busy seasons would overlap, which actually woks out well. I went through a couple months where I was lucky to see her for an hour a day and it would actually be nice to be equally as occupied.

 

[jimotis4heisman]

That's good. Never truly "going to work" can be a real challenge for most.

I work from home and can vouch for the taxes being a pain (though better since leaving Dublin).

Being busy and being unavailable are two separate things. Would it be feasible for you to pick up something from the dry cleaners or make a quick grocery run before or after work? Or does Mrs. Katt vow to never trouble her man with such annoyances?

joking aside. generally look at a few things
-$
-time
-other (whatever they might be, ie your hockey tickets, for some not/or being the boss/owner)
-growth (both personally and for the potential business).

while some (many) seem to drag on the tax negatives, their are some benies, as you well know.

 

[NJ-Buckeye]

Things to consider... since you didn't share what type of business you would be buying...

There's something to be said about someone else being responsible for income/sales/office operations, etc..... vs you just show up and collect your pay... If you don't shoot the bear, you ain't eating... the roller coaster revenue stream is not for the timid... the mortgage is due, the utilities are due, the car payment and insurance is due.. etc.. and they don't care you're still waiting on Acme Corp to decide on your proposal or is not paying until next month...

Life style advantages are huge... Your boss says it's OK to go golf today... He's approved of gym shorts and tank tops.. every day... You'll love him...

Tax benefits can be huge... a great CPA can be worth his weight in gold

Health insurance can be a much bigger issue than you perceive.. Most likely, you cannot get the lower cost group rates... and as such, you or your 'firm' become an entity and your rates will be a direct result of the bills you incur.. so what could be an inexpensive year 1 can rapidly grow.. hopefully you're a youngster and medical isn't an issue.. but some day... your rates will be a DIRECT result of your actual expenses.. because your rates are determined by your group which is only YOU

The office issues become all yours.. if the computers don't work.. if the bathroom malfunctions... bill disputes... phone issues.. stuff.. sounds immaterial but when the dang things don't work.. and time is not on your side.. you still have to be the one to get everything done...

Tax benefits can be huge.. I might even say this a third time...

You pay BOTH sides of FICA... 17.65%... that's a bite.. altho only for the first $95K'ish.. then it's only Medicare.. 3% ...

Might wanna consider a stud laptop... and docking stations... that way, whatever files you need... they'll always be with you... You will never keep two computers sync'd...

K.. I could keep going.. but my boss said I can leave now cuz it's sunny outside...

 

[Fungo Squiggly]

Things to consider... since you didn't share what type of business you would be buying...

There's something to be said about someone else being responsible for income/sales/office operations, etc..... vs you just show up and collect your pay... If you don't shoot the bear, you ain't eating... the roller coaster revenue stream is not for the timid... the mortgage is due, the utilities are due, the car payment and insurance is due.. etc.. and they don't care you're still waiting on Acme Corp to decide on your proposal or is not paying until next month...

The existing business already has a large clientele base, which is very nice. I wouldn't consider this if that wasn't the case. In this particular situation, I wouldn't expect client turnover to be an issue.

Life style advantages are huge... Your boss says it's OK to go golf today... He's approved of gym shorts and tank tops.. every day... You'll love him...

Unfortunately, I know the guy who would be my new boss all too well. He's a jerk.

Tax benefits can be huge... a great CPA can be worth his weight in gold

One of the areas about which I have very little concern. :p

Health insurance can be a much bigger issue than you perceive.. Most likely, you cannot get the lower cost group rates... and as such, you or your 'firm' become an entity and your rates will be a direct result of the bills you incur.. so what could be an inexpensive year 1 can rapidly grow.. hopefully you're a youngster and medical isn't an issue.. but some day... your rates will be a DIRECT result of your actual expenses.. because your rates are determined by your group which is only YOU

One of my biggest concerns. I know I can get away with it in the short-term while I figure out what to do long-term. Still fairly young without any major health-issues that aren't related to my current employer.

The office issues become all yours.. if the computers don't work.. if the bathroom malfunctions... bill disputes... phone issues.. stuff.. sounds immaterial but when the dang things don't work.. and time is not on your side.. you still have to be the one to get everything done...

Hadn't really given that too much consideration, although I assumed there would be some minor headaches.

You pay BOTH sides of FICA... 17.65%... that's a bite.. altho only for the first $95K'ish.. then it's only Medicare.. 3% ...

95k-ish, my ass! 106,800 and sure to climb in the coming years. Huzzah! :p

Might wanna consider a stud laptop... and docking stations... that way, whatever files you need... they'll always be with you... You will never keep two computers sync'd...

K.. I could keep going.. but my boss said I can leave now cuz it's sunny outside...

Sounds like you got a swell boss!

 

[jwinslow]

Does the business have all the legal paperwork & protection in place for the current setup? (note: I'm sure NJ or someone else could be more helpful in advice for this area)

One major thing I did was set up an LLC to protect my assets so that a client could only sue me for my business assets. They could not come after me for my car, house, electronics, etc.