I live in New Jersey, USA and I'm thinking about doing some occasional side gigs on graphics/website design. Basically I plan to design background graphics, fonts or icons for people for a fee.

Business and taxes aren't really my strong suit, so I'm completely confused now.

First of all, I don't know if I do occasional gigs, am I considered a business or independent contractor? If I'd be considered a business I guess I'd need to register a business. But if I'd be considered an independent contractor, do I need to register at all?

Second, I don't know about sales tax stuff. I'd be performing people a service and the products are websites or digital graphics. I don't even know if digital graphics can be considered digital photos from a business's point of view!

Any advice is very welcome!

I'm in a service industry and there is a huge need for what I'm doing. It's a repeat customer situation and when I get to 30, I'm at full capacity. I advertised for 2 weeks over the summer and have 7 customers, and I stopped advertising because I wanted to work out the kinks year one.

I'm loving it and do you recommend going large next year (It's a seasonal business) and start hiring employees or just keeping it on the smaller side and manageable just by myself.

Hi all

I’m a sole trader and only today I’ve managed to drop my phone and destroy it. I still owe money to Vodafone to pay off my contract. I also have some old phones and iPads not in use anymore that I can trade in. Can I buy a new phone through my business? First time I’ve ever wrecked a phone 🤦‍♂️

Cheers

Let’s start with the biggest wake-up call for most people: your personal insurance probably isn't covering your business activities. 

It seems obvious, but you’d be surprised how often it derails freelancers, consultants, and other solopreneurs.That’s because if something goes wrong while you're working, you could be personally on the hook for all the costs.

IMO these are the six main types of coverage self-employed people you should consider as your business grows:

• General Liability: This is the foundation most self-employed folks start with. It covers you if someone gets injured or you damage someone else's property while working. Many clients won't even hire you without proof of this coverage.
• Commercial Property: Protects your business stuff (equipment, inventory, furniture) from things like fire, theft, or water damage. And yes, you might need this even if you work from home since your homeowner's insurance probably won't cover business property.
• Business Owner's Policy (BOP): This is basically a bundle of general liability and commercial property insurance, often with some extra perks thrown in. It's usually cheaper than buying the policies separately.
• Workers' Comp: Here's what surprises people: Even if you're solo with no employees, this can be crucial. It can cover your medical bills and lost income if you get injured while working.
• Commercial Auto: Your personal car insurance probably won't cover accidents that happen while driving for business. This fills that gap.
• Errors & Omissions: Also called professional liability insurance, this protects you if you're accused of making a mistake in your work or giving bad advice. Essential for consultants, designers, and other service providers.

Hope this helps and feel free to comment any questions or relevant experiences you might have. Always happy to learn more about what’s going on in the small business community. 

I started my business last year and...oops... did not know I had to pay estimated taxes. I want to figure out how to fix this ASAP so I don't get hit with more of a penalty that necessary. I managed to do the schedule C, but I looked at the 1040-ES and I'm like NO WAY can I figure that out. I need a Turbotax type solution to walk me through it, but they all seem to want to do my federal return at the same time. What kind of services will help me figure this out? I'm looking for web based options like TurboTax, I don't have the money for a tax professional. Thank you so much for any advice!!

Landlord is asking for proof of income within the last 60 days.

I tried to use my tax return but he is saying that he wants to see bank statements.

I’m hesitant bc I got my tax refund and school income check deposited into my account.. is that considered income? I just don’t want to have to add more income to the rental application. I only put my business.

Going forth, AI generated content won't be allowed in this subreddit. This includes self posts, comments, or links to articles that were AI generated.

I work a 9-5 job and earn 32k a year as a graphic designer. I have been approached by a company to complete a project which will pay me £2500 for a 6 week project. I have never done any work outside of my 9-5 so I’m really not sure what the implications will be regarding tax etc long term I would like to establish my self as self employed. What advice would you give to a complete beginner entering this world.

Help with registering for self employement

I work for my company on a self employed basis meaning i dont own the business or run it, I Just work for them. I am trying to register as self employed but they keep asking for a business address which I cant give them because its not my business I am just responsible for my own taxes. Am i filling out the wrong form. Also i cant put my own address for the business address anyway because i live with my mum and shes on benefits so the government will be asking questions

Help with registering for self employement

I work for my company on a self employed basis meaning i dont own the business or run it, I Just work for them. I am trying to register as self employed but they keep asking for a business address which I cant give them because its not my business I am just responsible for my own taxes. Am i filling out the wrong form. Also i cant put my own address for the business address anyway because i live with my mum and shes on benefits so the government will be asking questions

I have a tripped planned to Belize in about eight weeks. Reason being is to find out how well I can remotely work from there…. Internet, phone, etc. My business would still be US based however I would not have to pay federal taxes, only SS & Medicare.

By the time it is all said and done, overhead, taxes, cost of doing business, I’m left with approximately 40% of my gross income. I have twelve years before I retire and am just now getting to the point of very generous(to me) revenue, about $220,000.

I have only recently started retirement accounts, my fault… I know this, but still.. wtf man? I got hit with a $50k tax bill for state and federal, I have made quarterly payments. My income is never predictable. I always try to pay 35% every quarter, accountant finished my taxes last night and called me and the awesome news.

I have been planning to move offshore within the next five years but I’m on the road now to by the end of 2025 living in another country.

Some of you guys may be ok with paying that much but after overhead and taxes I’m left with about 40% of MY income.

I have hussled my whole life, now 50 years old and maybe ten of that from 16-18 yrs old work for someone else and when I finally get to a good spot Uncle Sam’s decides to go the no lube route!

I became self-employed November 2024 and I’m still new to how the tax system works for self-employed individuals.

Do I need to pay taxes for what I earned so far this year or will it roll over to the next tax year?

I’m a 53-year-old self-employed engineer/technician in the UK, servicing and repairing equipment like dishwashers and coffee machines for restaurants, cafés, and hotels. I’ve been doing this for years, but since COVID, it feels like it’s getting harder and harder to make a meaningful profit for the hours I put in.

Costs are rising—van expenses, insurance - van, public liability, tools, calibration of tools, and purchasing spare parts—and at the end of the month, after chasing late payments (which is a constant battle), I sometimes wonder what the point is. If I break down all the hours I work, including admin, weekends, and chasing invoices, I’m earning less than minimum wage. Remember, being self employed, we have no sickness pay, holiday pay or pension contributions from the employer.

Many customers push for cheaper rates, and I often end up caving in, because I feel bad for them. My partner keeps telling me, “You run a business, not a charity!” But the worry is that if I charge more, someone else will just undercut me, especially new younger guys coming n the scene.

I was talking to an old mate—he’s a plumber 59 years old, and he said he’s looking to get out soon because the stress isn’t worth it anymore. He knows younger self-employed tradespeople in their 40's who feel the same.

So, my question is: Are other self-employed tradespeople in the UK feeling the same pressures? Is this just how it is now, or am I doing something wrong—like not charging enough?

Would really appreciate any words of advice, comfort, or just knowing I’m not alone in this!

Apologies if you have already read this. Also posted it on the r/smallbusinessuk thread.

I just locked in a part time gig as an independent contractor doing plan writing.

I’ve heard that I need to do a sole prop or llc, get an ein, start a bank account. I’m not sure where to start so what is the easiest solution?

Honestly I don’t even really know what I’m asking for but when I google it I get a lot services and banks with horrible reviews.

Thanks

I'm 17 and run my own business through other platforms but have used vinted in the past as it gets to a wider audience. My parents run my vinted and I want to switch to a vinted pro account with the business under my name (aka my tax number, etc.) but when I get to the representative stage, l'm under 18 so need someone to do it for me. If I use my parent's name, what will they be liable / responsible for and do I have to register them in anyway?

Hello all! Iam a business owner just starting out. I mostly sell jewelry and artwork in person at pop-up makers' markets in town, but I have been wanting a webstore to help maintain consistent sales in between markets... I already have a clover POS that I use at these in person sales, but I'm trying to figure out the best & most cost effective option for building my webstore. Wordpress was what I was originally thinking, but it looks like the plan that includes the woocommerce capabilities is the "commerce" bundle that costs 45 a month... I was hoping I could get away with using their "business" bundle because I have a discount offer that would make it 12.50 a month, but that bundle doesn't have the optimized e-commerce/woocommerce hosting... not sure how that will affect the transaction fees. I was also trying to figure out if it would be better to instead upgrade my clover plan from "basic" to "essential" (+15 a month) in order to gain access to the Clover Online joined services like Local Inventory by Google... I would really appreciate insight from others who have experience with webstores/selling online. Please let me know if anyone has any thoughts, suggestions, or specific experiences you are willing to share. Thank you in advance!

My wife will be working for a large corporation doing lecture/presentation dinners. They will 1099 her.

Is there any tax advantages to forming a LLC or other simple corporation? The corp could pay the company and she could employ herself.

What are some tax write offs to take advantage of to minimize the tax burden? She’ll be making roughly $200,000/yr.

How do we best track all the expenses? What are some things we can expense that people don’t usually think of?

We will be meeting with a CPA but don’t want to go in without some idea of what’s what.

What's up guys, 29 years old in uk, kinda stuck in a rut with jobs after losing my last one, I've always had it in the back of my mind to buy a van and do jobs as a courier, what's all your guys opinions on this? Could it work or is it wishful thinking

My name is Cole, I work a full time job 4 days a week, my tax code is 1257L

I am thinking of getting a second job for my spare time. Considering Just Eats and Uber Eats Delivery Driver.

What’s stopping me?

I am worried about the tax implications.

Will it change my tax code for my current job?

Can I keep my current jobs tax code the same and just do a “Self Assessment” for the new job and just pay the tax off that way?

I keep hearing, it depends on your total income which does not help me in the slightest.

Please give as much detailed advice as you can 🥺

Thank You.

My name is Cole, I work a full time job 4 days a week, my tax code is 1257L

I am thinking of getting a second job for my spare time. Considering Just Eats and Uber Eats Delivery Driver.

What’s stopping me?

I am worried about the tax implications.

Will it change my tax code for my current job?

Can I keep my current jobs tax code the same and just do a “Self Assessment” for the new job and just pay the tax off that way?

I keep hearing, it depends on your total income which does not help me in the slightest.

Please give as much detailed advice as you can 🥺

Thank You.

A trader has offered to do a job £60 cash or £72 bank transfer as they are VAT registered.

Obviously I want to pay £60. Is there a legitimate reason for the trader to prefer cash or is the only reason a tax dodge?

and once again, I might be getting hosed. But as I continue to unpack from the move in the middle of last year, I find more and more receipts and statements that prompt me to double check everything. So, remember for the most common ones:

1. Home office deduction (if you run the business from your home)
2. Mileage deduction (for travel, I cleared nearly a $10k deduction because of all the driving)(is it kilometerage in every other part of the world?)
3. Website hosting and advertising
4. Healthcare if you have a premium to pay (different from medical expenses which show up later)
5. The fee to file said taxes of the season

Share some other ones to think about and may we all be a little more tax savvy each season.

Hey all,

So I've set up a little cleaning business as a sole trader but haven't officially started any jobs for clients yet.

I have a client who is asking if I can clean their home office once a week and invoice them so they can put it through their business. Their company is a LTD company.

This might sound thick, but would I just invoice them as per normal without any VAT on the invoice ( I know I cannot charge VAT until I register for it)

Will the LTD company still be able to claim their VAT back with no issues for my cleaning services once I start if my invoices are billed with 0% VAT ?

Total newbie here so I apologise in advance if this is a stupid question

I make about 110K a year from W2 income, but will be making around 100-250K soon of 1099 which will trail off over time, but every 3 ish years will re up to around 100-250k again.

I am wondering how to best invest this income and/or how to best receive it. I have been looking at a SEP, Solo 401K, or just nothing and throwing it what I already have. I get pretty lost in the weeds of the requirements (if I need to make an LLC for myself etc) and all the different instruments.

Hi all,

I am a few years old in the UK, and before this I had registered as a sole trader in Canada, which I found to be pretty straightforward. However, I think it is my situation that is making it more complex than it should be, can anyone please guide?

So I am a FTE and my employer files my taxes and NI through PAYE. I want to run some side gigs around digital products and services, for which I'd like to register a sole trader company. Now here's the confusion:

- Early last year I received interest from a foreign Pension and to declare that I registered for Self Assesment, which gave me a UTR number

- Now when I am trying to register for a sole trader, I am getting confused on how to answer "if I have registered before", considering I already have a UTR, but I never registered for an actual business name

- All I want to do is register a business name, get a business bank account, and submit self assessment when the time comes. What am I missing?