Entrepreneurs

[Warhammer]

Are any of you guys in business for yourself?

What are some commonly missed expenses that crop up in your business?

How are FICA taxes handled?

[CU Tiger]

Between wife and I we own 4 small companies.
Employ around 80 folks total.

If you are small, count on taxes at 25% of net and file quarterly.

Expenses? everywhere...

Gas is of course a huge focus lately.
Insurance.
(this would of course depnd on the business) But I had an $800 copy repair bill last month...
Office supplies can add up...
I mean when you sit down and really budget, its like everything costs twice as much as you'd think.
Jobs pay half as much as they should.
And your money is always twice as late as its promised...

[Warhammer]

What do you guys do?

[heybrad]

What do you guys do?
I race cars, play tennis and fondle women, BUT I have weekends off and I am my own boss.

[CU Tiger]

I am an electrical contractor.(This is my primary business and where I go to "work" everyday)

I own a landscaping and grading company.(Old electrician trucks need somewhere to die...Really this is something I started in college and now have set up where it runs itself with minimal input from me. I spend maybe 10 hours/week here and make a modest profit)

My wife started a craft, jewelry, clothing and accessory manufacturing company. That now employs 25 people thanks to one contract (yes Wal-Mart is the devil....but a well paying devil at times)

And my hobby :rolleyes: Is a real-estate development and property management company. Where we flip houses, and renovate and rent some.

[gottimd]

I race cars, play tennis and fondle women....

All at once?

[Warhammer]

I am an electrical contractor.(This is my primary business and where I go to "work" everyday)

I own a landscaping and grading company.(Old electrician trucks need somewhere to die...Really this is something I started in college and now have set up where it runs itself with minimal input from me. I spend maybe 10 hours/week here and make a modest profit)

My wife started a craft, jewelry, clothing and accessory manufacturing company. That now employs 25 people thanks to one contract (yes Wal-Mart is the devil....but a well paying devil at times)

And my hobby :rolleyes: Is a real-estate development and property management company. Where we flip houses, and renovate and rent some.

OK. I am looking att opening a rep firm, I am just trying to figure out what would apply and what wouldn't.

[Warhammer]

Quick question here, if I am self employed, and travel, all my hotel stays and gas receipts are considered expenses and are used to figure out my net profit, which is what is taxed, right?

I ask because nothing I am reading on this specifically spells this out.

[st.cronin]

My fiancee does at home pet care.

[CU Tiger]

Quick question here, if I am self employed, and travel, all my hotel stays and gas receipts are considered expenses and are used to figure out my net profit, which is what is taxed, right?

I ask because nothing I am reading on this specifically spells this out.

****Ok Im not a CPA the most prudent decision would be to consult one.
Ok now that the disclaimer is out of the way.****

It really will depend on how you and your company are set up.
If you are incorporated and act as an employee of the company the expenses can be costs (of the corporation) associated with doing business and the amounts can be reimbursed to you (personally) without taxation. (think expense account at any job)

If you are a S.P. or similar and do not separate your business and personal finance (side note stop immediately you are throwing money away, back to point) Those are expenses and could be categorized a few ways. They would probably work out best as business expenses that reduce your profit/taxable income. But I couldd also see where they could bee personal expenses that would only reduce your basis.

It really depends on how you are set up and how you file.

[MrBigglesworth]

Quick question here, if I am self employed, and travel, all my hotel stays and gas receipts are considered expenses and are used to figure out my net profit, which is what is taxed, right?

I ask because nothing I am reading on this specifically spells this out.

Quick answer is yes. You can also deduct food while away (I think it only counts half, though). If I were you I would have the company be an LLC and then have 'the company' give yourself a per diem while on the road. And if you drive clients around you can deduct things like car washes.

Best advice though is to talk to a CPA.

[Marc Vaughan]

(apologies for thread stealing)

While I've got you all here together - am I right in presuming you've got private health insurance for yourselves and your families?

If so then I'm wholly open to recommendations for how to approach such things* - I'm emigrating to Florida in a few weeks time (still staying with SI and continuing to help make FM - just telecommuting, just its my turn to live abroad (my wife's from Florida)).

*In the UK we're somewhat blessed with a national health system which does everything for us (and is free), when I emigrate at least initially I'll have to fund any health insurance myself.
I've a wife and three kids (12, 8, 4 years old) to look after ... I've been warned that I'll be shocked, but I'm not sure how 'shocked' to expect ;)

[JonInMiddleGA]

I've been warned that I'll be shocked, but I'm not sure how 'shocked' to expect ;)

It's almost certain to vary from situation to situation, but only so-so coverage for me+wife+1 child is over $1k a month.

[KevinNU7]

You will not only be shocked you will be very upset.

[CU Tiger]

It's almost certain to vary from situation to situation, but only so-so coverage for me+wife+1 child is over $1k a month.

Me + wife + 2
Is around $500. But I use a HSA, and I have essentially a 10k deductable. Basically I self insure for the little crap and have insurance only for major emergency (cancer, trauma treatment, major surgery etc.)

Plus all the HSA contributions are sheltered. We "pay" $1200 a month and have developed a nice nest egg.

Google HSA or "healthcare IRA" that is a popular slang term.

[Marc Vaughan]

Ow - thats around the figure I feared would be the case ....

As a total newcomer to the world of paying for such things - is it tax deductable at all*?

*You can tell I'm a newbie at this sort of thing can't you ;)

[MrBigglesworth]

Ow - thats around the figure I feared would be the case ....

As a total newcomer to the world of paying for such things - is it tax deductable at all*?

*You can tell I'm a newbie at this sort of thing can't you ;)
If you are self-employed the health insurance is 100% tax deductable. If you aren't, I think you can deduct anything over 7.5% of your adjusted gross income. It's all explained in this easy to follow, 3,735 mile long web page:

http://www.irs.gov/publications/p502/ar02.html

Welcome to the American health system.

[KevinNU7]

Is your company paying expat expenses are part of your move to the US? It sounds like it is your choice and doesn't provide a benefit to the company but I thought I would ask.

[Critch]

On the plus side, get DirecTV sport package + Setanta and you'll be able to watch more EPL games every weekend than you can in the UK.

[Icy]

It's almost certain to vary from situation to situation, but only so-so coverage for me+wife+1 child is over $1k a month.

WOW, $1k is over the average monthly salary in Spain.

As Marc V. in UK, we have also free health from the government in Spain. After my baby died past year, I also subscribed a private health insurance that covers it all, from the minor visits to the doctors to any major hospitalization, including giving birth, etc.

It's basically the same that we have for free from the government, but the main difference is that i can choose any doctor or hospital in my whole country and even some in USA, instead of being forced to use my state ones provided by the government.

For the full covered private health insurance for me and my wife we pay $120/month and i can discount it 100% from my taxes as I'm self employed, so let's say i have it for free.

For stuff like this is why i wouldn't move to USA, even when i love the culture and specially the sports. Bring pro and college football and baseball to Spain and this would be the paradise :D

[Warhammer]

I was quoted $360 per month for family and 2 kids, but part of that was due to the area that I had the quote prepared for. Much of the cost of insurance is due to where you live. I have a feeling that the cost of care in Florida is going to be much higher than what you would see in the middle of Wyoming.

[Marc Vaughan]

Is your company paying expat expenses are part of your move to the US? It sounds like it is your choice and doesn't provide a benefit to the company but I thought I would ask.

Its my choice - SI are fairly multi-national already (Ov lives in Turkey, PaulC in Sweden, Riz in Finland, Phillip in America, Woodg in Ireland etc.) so its not really that out of the ordinary (at least for us ;) ).

From the companies perspective its really pretty much 'no change*' apart from the fact that I'll be doing most of my communicating via. telephone or MSN (which with a percentage of people offsite already we're pretty used to anyway).

*Main advantage for people in SI based in England is another person to use as a remote shopper for cool items they can't get locally ;)

[Marc Vaughan]

On the plus side, get DirecTV sport package + Setanta and you'll be able to watch more EPL games every weekend than you can in the UK.

Already got that planned :D