Self employment
Dec 19th 2007, 7:07 am
#31
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Re: Self employment
Thankfully, for me I consulted some accountants before founded the company. So, I am more of a corporation than simply self employed.
Dec 19th 2007, 9:56 am
#32
gurt mint nit?
Joined: Nov 2007
Location: In my shed
Posts: 2,776
Re: Self employment
I am looking for some advice and tips from persons whom are self employed in the USA.
Do you think you are less stressed?
Do you think it was a great idea, now looking back?
What are the three main difference in creating a business in the USA in comparison to the UK?
Thanks.
Do you think you are less stressed?
Do you think it was a great idea, now looking back?
What are the three main difference in creating a business in the USA in comparison to the UK?
Thanks.
Health Ins is #1 issue, obviously, but my OH provides so no prob.
As to why, same reason as other posters. Corporate "culture" in the US is naff and in fact, was probably going to put me in an early grave. Passive-agressive mgmt techniques, working for free, party-line stuff, all that.
I don't worry about being out of work. I finally got a sheepskin here now and was out of work before with nothing. IMHO, detachment from the rubbish that goes with working here is the only thing to do - my blood pressure has dropped considerably and I'm much happier at work now.
Good luck to you.
Dec 19th 2007, 5:07 pm
#33
Boomshacalaca!!
Joined: Dec 2005
Location: South of the North Pole.......Colorado
Posts: 5,066
Re: Self employment
I don't think there is a clear cut answer to this workstyle. In essence, what works for one person, may not work for another. It really boils down to what sort of field you are in and thinking of breaking into independently. Everything has pros & cons and so far, every person has posted good insight.
Stress. Different form. It sounds silly to say but stress is self manifested and there is no avoiding it. Being self employed may produce a different form of it. I have been self employed for a number of years and it has its ups and downs but I don't regret my decision - I don't miss the red stapler!
Freedom, Independence & Creativity - you can't beat it. Being your own boss. No corporate b#%*$h!t and politics to interfere and make life miserable. Should you want to sit on your ass; nothing nor no one to stop you. Besides, how else are you going to be able to check in the happenings of BE?!?!
Consistancy: IMO this is the hardest thing... producing consistent stream of prospects and business to make a consistent and regular income. For many, this is the biggest stress factor. Again, it depends what sort of field/biz you are in; there are many fields which doesn't require vast amount of effort to procure customers & clients alike. I guess what I am trying to say is that there are various self employed people where the customer automatically comes to you per se because you have the "need" so you are not constrained by pitching yourself and/or a product that someone doesn't necessarily need in the first place. W/as there are many fields where you have to be out and about to drum up your own business.
Health & Benefits etc: blurbed and chirped before me. x2 if you plan to hire employees.
Taxes. Ah crap. LLC, s-Corp, c-Corp are the 3 popular types of business entities used... depends on your economic standing to which is the most beneficial to you. As someone mentioned, check on things like vicarious liability etc of the "company". Much of what you do may be deductible.. talk to a pro though. SE means your expenses shoot up!
Discipline: Not the kink sort.. well, may be for some. Being self employed forces you to have to be strict with yourself... no room for laziness. initially, your biz doesn't run itself! That's what I want for Xmas, biz to run itself so I can have a drink with a silly umbrella in it somewhere.
I can't really say the similarities and differences of being SE in the US v UK... to me its the aptitude and frame of mind of people you are dealing with. The "can do" mentality thrives in the US and I think its slightly easier to get your foot in the door to whatever you wish to do over here. I haven't ever been SE in the UK so I can't comment about it but I think it would come with a whole set of different sort of struggles per se and ones which are steeper than over here.
Overall, I am happier. Less petty crap to mess with. However, not knowing where and when the next paycheck comes from is the biggest concern... everything else is manageable!
Wow, who would of thought I am being serious natured for once on here!
Stress. Different form. It sounds silly to say but stress is self manifested and there is no avoiding it. Being self employed may produce a different form of it. I have been self employed for a number of years and it has its ups and downs but I don't regret my decision - I don't miss the red stapler!
Freedom, Independence & Creativity - you can't beat it. Being your own boss. No corporate b#%*$h!t and politics to interfere and make life miserable. Should you want to sit on your ass; nothing nor no one to stop you. Besides, how else are you going to be able to check in the happenings of BE?!?!
Consistancy: IMO this is the hardest thing... producing consistent stream of prospects and business to make a consistent and regular income. For many, this is the biggest stress factor. Again, it depends what sort of field/biz you are in; there are many fields which doesn't require vast amount of effort to procure customers & clients alike. I guess what I am trying to say is that there are various self employed people where the customer automatically comes to you per se because you have the "need" so you are not constrained by pitching yourself and/or a product that someone doesn't necessarily need in the first place. W/as there are many fields where you have to be out and about to drum up your own business.
Health & Benefits etc: blurbed and chirped before me. x2 if you plan to hire employees.
Taxes. Ah crap. LLC, s-Corp, c-Corp are the 3 popular types of business entities used... depends on your economic standing to which is the most beneficial to you. As someone mentioned, check on things like vicarious liability etc of the "company". Much of what you do may be deductible.. talk to a pro though. SE means your expenses shoot up!
Discipline: Not the kink sort.. well, may be for some. Being self employed forces you to have to be strict with yourself... no room for laziness. initially, your biz doesn't run itself! That's what I want for Xmas, biz to run itself so I can have a drink with a silly umbrella in it somewhere.
I can't really say the similarities and differences of being SE in the US v UK... to me its the aptitude and frame of mind of people you are dealing with. The "can do" mentality thrives in the US and I think its slightly easier to get your foot in the door to whatever you wish to do over here. I haven't ever been SE in the UK so I can't comment about it but I think it would come with a whole set of different sort of struggles per se and ones which are steeper than over here.
Overall, I am happier. Less petty crap to mess with. However, not knowing where and when the next paycheck comes from is the biggest concern... everything else is manageable!
Wow, who would of thought I am being serious natured for once on here!
Dec 19th 2007, 5:27 pm
#34
Homebody
Joined: Jan 2005
Location: HOME
Posts: 23,181
Re: Self employment
Luckily I kept most of my UK clients. Maybe it's partly because I've known most of them for years and have an established track-record, but I find them much easier to work and get along with.
Dec 19th 2007, 6:42 pm
#35
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
Re: Self employment
Discipline: Not the kink sort.. well, may be for some. Being self employed forces you to have to be strict with yourself... no room for laziness. initially, your biz doesn't run itself! That's what I want for Xmas, biz to run itself so I can have a drink with a silly umbrella in it somewhere.
i'm in the current phase where I need to work my ass off, so no drinks with umbrellas for me... yet!
Dec 20th 2007, 3:37 am
#36
Lost in BE Cyberspace
Joined: Jul 2007
Location: Cincinnati, Ohio
Posts: 8,497
Re: Self employment
You make some very good points. I would say that, apart from tax issues, the biggest difference I have found between the UK and the US is clients' attitudes to 'contractors'. In the UK, I was basically seen as a colleague, whereas here I am seen as a *vendor*. The whole attitude is more hard-nosed and "what can you do for us", and I'm expected to dance to their tune.
Luckily I kept most of my UK clients. Maybe it's partly because I've known most of them for years and have an established track-record, but I find them much easier to work and get along with.
Luckily I kept most of my UK clients. Maybe it's partly because I've known most of them for years and have an established track-record, but I find them much easier to work and get along with.
Dec 20th 2007, 4:04 am
#37
Lapine Member
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Location: Austin, Texas in my own little world
Posts: 21,691
Re: Self employment
Dec 20th 2007, 7:37 am
#38
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Dec 20th 2007, 7:39 am
#39
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Dec 20th 2007, 6:13 pm
#41
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Re: Self employment
Seems you are talking about the Japanese, not other Asians then?
Dec 21st 2007, 4:27 am
#42
Bloody Yank
Joined: Oct 2005
Location: USA! USA!
Posts: 4,186
Re: Self employment
I'm self-employed, but I'm not a Brit, so I can't make the cross-cultural comparisons.
The main benefit of self-employment is that it's much easier to fire your bosses (clients) when they suck, and to find new sources of revenue without create conflicts of interest. You don't have to be beholden to any one of them in particular, as you can maintain a less servile relationship.
Then again, you get zero vacation time. And not getting paid, or having your bill renegotiated after the fact, or just having a payment delay, is not so wonderful. Be sure that you have extra money put away to get through the periods when your revenues are low, or when you haven't yet received payment. Be sure that you allow for enough time and expense for marketing and promotion, to finding new clients, and more time still for collecting payment on your invoices. Consider the ancillary expenses you may have, such as building a website, creating brochures, fancy Christmas gifts, and all that.
When self-employed, you have to pay a 50% surcharge for Social Security payments to make up for a portion of the payment not being made by the employer who you no longer have. Then again, you are eligible for tax deductions that would have not been accessible to you as an employee.
Insurance issues are awful if you are single and have pre-existing health conditions. If you are younger and healthy, then you can find insurance relatively easily. You can also assume COBRA from your last employer for eighteen months, but I would strongly suggest that you find your own insurance as quickly as possible so that in the event that you develop health issues that they don't fall into the category of being regarded as "pre-existing conditions."
Forming an LLC is generally a very good idea (I have one myself), but this is not possible for everyone. You need to research your own state laws to learn about what is required to form one, and whether your business can use one. For example, accountants often have to form professional corporations such as an LLP, and may not be permitted to use the LLC structure for their practices. Your state should have a Secretary of Corporations or Secretary of State website with many of the forms you'll need, and mechanisms to do a name search so that you can be sure that your company name is available.
Nolo Press publishes excellent books on how to form your own LLC or S-corporation. In many cases, an LLC is more advantageous than an S-, but again, it depends on your situation. You usually don't need an attorney for an LLC; forming an S-corp without one can be a bit trickier.
The main benefit of self-employment is that it's much easier to fire your bosses (clients) when they suck, and to find new sources of revenue without create conflicts of interest. You don't have to be beholden to any one of them in particular, as you can maintain a less servile relationship.
Then again, you get zero vacation time. And not getting paid, or having your bill renegotiated after the fact, or just having a payment delay, is not so wonderful. Be sure that you have extra money put away to get through the periods when your revenues are low, or when you haven't yet received payment. Be sure that you allow for enough time and expense for marketing and promotion, to finding new clients, and more time still for collecting payment on your invoices. Consider the ancillary expenses you may have, such as building a website, creating brochures, fancy Christmas gifts, and all that.
When self-employed, you have to pay a 50% surcharge for Social Security payments to make up for a portion of the payment not being made by the employer who you no longer have. Then again, you are eligible for tax deductions that would have not been accessible to you as an employee.
Insurance issues are awful if you are single and have pre-existing health conditions. If you are younger and healthy, then you can find insurance relatively easily. You can also assume COBRA from your last employer for eighteen months, but I would strongly suggest that you find your own insurance as quickly as possible so that in the event that you develop health issues that they don't fall into the category of being regarded as "pre-existing conditions."
Forming an LLC is generally a very good idea (I have one myself), but this is not possible for everyone. You need to research your own state laws to learn about what is required to form one, and whether your business can use one. For example, accountants often have to form professional corporations such as an LLP, and may not be permitted to use the LLC structure for their practices. Your state should have a Secretary of Corporations or Secretary of State website with many of the forms you'll need, and mechanisms to do a name search so that you can be sure that your company name is available.
Nolo Press publishes excellent books on how to form your own LLC or S-corporation. In many cases, an LLC is more advantageous than an S-, but again, it depends on your situation. You usually don't need an attorney for an LLC; forming an S-corp without one can be a bit trickier.
Dec 21st 2007, 6:08 am
#43
Lapine Member
Joined: Nov 2004
Location: Austin, Texas in my own little world
Posts: 21,691
Re: Self employment
I will limit my comment to the Far East Asians.... Americans don't use the word "Asian" to mean the subcontinent.
The thing that sticks with me most is the fact that Japanese employees have committed suicide when they feel they have failed their employers.... as did the Chinese CEO when that company's toys were found to have high lead levels (this was within the last few months). Imagine working with someone who, if they fail, might do this. You do everything you can to make sure they have correct, up-to-date information and still you don't sleep until the problem's solved.
The thing that sticks with me most is the fact that Japanese employees have committed suicide when they feel they have failed their employers.... as did the Chinese CEO when that company's toys were found to have high lead levels (this was within the last few months). Imagine working with someone who, if they fail, might do this. You do everything you can to make sure they have correct, up-to-date information and still you don't sleep until the problem's solved.
Dec 21st 2007, 6:56 am
#44
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Location: Nevada b4 California b4 Colorado b4 Valley of plastic and sand, b4 London
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Re: Self employment
I'm self-employed, but I'm not a Brit, so I can't make the cross-cultural comparisons.
The main benefit of self-employment is that it's much easier to fire your bosses (clients) when they suck, and to find new sources of revenue without create conflicts of interest. You don't have to be beholden to any one of them in particular, as you can maintain a less servile relationship.
Then again, you get zero vacation time. And not getting paid, or having your bill renegotiated after the fact, or just having a payment delay, is not so wonderful. Be sure that you have extra money put away to get through the periods when your revenues are low, or when you haven't yet received payment. Be sure that you allow for enough time and expense for marketing and promotion, to finding new clients, and more time still for collecting payment on your invoices. Consider the ancillary expenses you may have, such as building a website, creating brochures, fancy Christmas gifts, and all that.
When self-employed, you have to pay a 50% surcharge for Social Security payments to make up for a portion of the payment not being made by the employer who you no longer have. Then again, you are eligible for tax deductions that would have not been accessible to you as an employee.
Insurance issues are awful if you are single and have pre-existing health conditions. If you are younger and healthy, then you can find insurance relatively easily. You can also assume COBRA from your last employer for eighteen months, but I would strongly suggest that you find your own insurance as quickly as possible so that in the event that you develop health issues that they don't fall into the category of being regarded as "pre-existing conditions."
Forming an LLC is generally a very good idea (I have one myself), but this is not possible for everyone. You need to research your own state laws to learn about what is required to form one, and whether your business can use one. For example, accountants often have to form professional corporations such as an LLP, and may not be permitted to use the LLC structure for their practices. Your state should have a Secretary of Corporations or Secretary of State website with many of the forms you'll need, and mechanisms to do a name search so that you can be sure that your company name is available.
Nolo Press publishes excellent books on how to form your own LLC or S-corporation. In many cases, an LLC is more advantageous than an S-, but again, it depends on your situation. You usually don't need an attorney for an LLC; forming an S-corp without one can be a bit trickier.
The main benefit of self-employment is that it's much easier to fire your bosses (clients) when they suck, and to find new sources of revenue without create conflicts of interest. You don't have to be beholden to any one of them in particular, as you can maintain a less servile relationship.
Then again, you get zero vacation time. And not getting paid, or having your bill renegotiated after the fact, or just having a payment delay, is not so wonderful. Be sure that you have extra money put away to get through the periods when your revenues are low, or when you haven't yet received payment. Be sure that you allow for enough time and expense for marketing and promotion, to finding new clients, and more time still for collecting payment on your invoices. Consider the ancillary expenses you may have, such as building a website, creating brochures, fancy Christmas gifts, and all that.
When self-employed, you have to pay a 50% surcharge for Social Security payments to make up for a portion of the payment not being made by the employer who you no longer have. Then again, you are eligible for tax deductions that would have not been accessible to you as an employee.
Insurance issues are awful if you are single and have pre-existing health conditions. If you are younger and healthy, then you can find insurance relatively easily. You can also assume COBRA from your last employer for eighteen months, but I would strongly suggest that you find your own insurance as quickly as possible so that in the event that you develop health issues that they don't fall into the category of being regarded as "pre-existing conditions."
Forming an LLC is generally a very good idea (I have one myself), but this is not possible for everyone. You need to research your own state laws to learn about what is required to form one, and whether your business can use one. For example, accountants often have to form professional corporations such as an LLP, and may not be permitted to use the LLC structure for their practices. Your state should have a Secretary of Corporations or Secretary of State website with many of the forms you'll need, and mechanisms to do a name search so that you can be sure that your company name is available.
Nolo Press publishes excellent books on how to form your own LLC or S-corporation. In many cases, an LLC is more advantageous than an S-, but again, it depends on your situation. You usually don't need an attorney for an LLC; forming an S-corp without one can be a bit trickier.
So far I will be doing this while I still have a full time job but thanks for the things to look ahead in advance.
Dec 21st 2007, 7:00 am
#45
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Re: Self employment
I will limit my comment to the Far East Asians.... Americans don't use the word "Asian" to mean the subcontinent.
The thing that sticks with me most is the fact that Japanese employees have committed suicide when they feel they have failed their employers.... as did the Chinese CEO when that company's toys were found to have high lead levels (this was within the last few months). Imagine working with someone who, if they fail, might do this. You do everything you can to make sure they have correct, up-to-date information and still you don't sleep until the problem's solved.
The thing that sticks with me most is the fact that Japanese employees have committed suicide when they feel they have failed their employers.... as did the Chinese CEO when that company's toys were found to have high lead levels (this was within the last few months). Imagine working with someone who, if they fail, might do this. You do everything you can to make sure they have correct, up-to-date information and still you don't sleep until the problem's solved.
When, I first moved over here I too was confused with the way the term is Asian was used over here as opposed to the way we do in the UK.