When you first start your small business, or you receive your first self-employment paycheck, you may begin to wonder about the process of paying your taxes. Of those taxes, the self-employment tax is often the most frequently misunderstood. This guide will explain what the self-employment tax is and how to determine what you owe.
For most small business owners, traveling for business purposes is a normal occurrence. But, when that first event arises, you may be left wondering how to document your travel expenses. Even more, you may not know exactly which small business travel expenses are tax-deductible.
What is an employer identification number and do I need one? Both are really great questions. It can be a bit confusing sometimes to understand all of the ins and outs of being self-employed.
Because there are so many possible scenarios for this topic, I will try to be as general as possible. However, you should note that I am mostly speaking to bloggers, freelancers, and the like. So, take that into consideration as you read through this post.
One question many bloggers have about what they do is how to label what they do. Am I a blogger? Am I a graphic designer who just happens to blog? Am I a travel expert? etc. Normally, it is nothing more than a bothersome dilemma that occurs when one is developing their elevator pitch. That is until you’re filling out your tax return and the IRS presents you with that empty box requesting a business activity code. WHAT???