10 Tips to Help You Become Self-Employed
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1. Build a Business Plan
2. Start Small
3. Incorporate Your Business
4. Understand Self-Employment Taxes
5. Maximize Your Tax Deductions
6. Open a Business Bank Account
7. Prepare for Retirement
Simplified Employee Pension (SEP) IRA: You can contribute 25% of your net earnings each year tax-free, up to $66,000 for 2023. Solo 401(k) Plan: You can make an annual salary deferral up to $22,500 for 2023, plus an additional $7,500 in 2023 if you’re 50 or older. Savings Incentive Match Plan for Employees (SIMPLE IRA Plan): You can contribute all of your net earnings up to $15,500 in 2023, plus an additional $3,500 in 2023 if you’re 50 or older, in addition to either a 2% fixed or 3% matching contribution.
8. Be Frugal
9. Prepare for Irregular Income
10. Explore Financing Options
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