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3 Ways in Which You’re on Your Own as a Solo Entrepreneur – HindSight

3 Ways in Which You’re on Your Own as a Solo Entrepreneur

When you are a solo entrepreneur, you have the freedom of being your own boss. This also means you have more responsibility. When you are a solo entrepreneur, you are on your own in 3 main ways: taxes, insurance, and business expenses.

Taxes

As a solo entrepreneur you will have to figure out taxes. You will need to pay state and federal taxes on your income. You will also have to pay self-employment tax which will cover social security and Medicare.  You may also need to pay capital gains taxes if you make investments or sell assets. Additionally, if you make investments you may need to pay taxes on the dividends. You may also need to pay taxes on property if you have any. You may qualify for certain tax deductions and write offs, so it may be helpful to hire an accountant to help you manage your taxes.

Insurance

When you are a solo entrepreneur, you will need to shop around for your own insurance policies. The most important insurance for you is health insurance. You can search the health insurance marketplace to see what you qualify for. You can also research private health insurance. There are also health shares that cover healthcare costs which is a group where money is pooled together to cover costs for the group.  You may also want to include disability insurance. Most long-term disability policies you’ll find have an elimination period of six months.

Business Expenses  

When you are a solo entrepreneur, all business expenses fall to you. There are many expenses that you need to be prepared for. Advertising and marketing expenses are an important expense that you will need to cover. You need to stay up to date in your industry and invest in yourself and business by taking courses and hiring a business coach. There will be legal and financial expenses to protect your business. Of course, any other things you need for your business, such as internet, supplies, office, etc. Make sure to check with an accountant to see what business expenses you can write off to save on taxes.

Being a solo entrepreneur allows you to be your own boss and have so much freedom. You also will be on your own in many ways. You can always seek help from professionals who can help you manage your business expenses, taxes, and help with insurance.

Read this next: How to Keep Your Business Growing

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