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Well, it's not Friday, but I guess these features are more fitting for today :) Happy Saint Patrick's Day!
Clockwise from top left:
Monday, March 17, 2014
Thursday, March 13, 2014
Considering Self-Employment?
Last week's post about becoming incorporated got a lot of discussion going with other bloggers and business owners. We got to talking about some very important parts of being self-employed and I thought I'd discuss those today.
While quitting your full-time job and working for yourself sounds awesome (which it really is!), there are some things to consider when leaving your full-time job. Your employer may offer you a lot of benefits that being self-employed will not.
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| https://www.etsy.com/listing/179276539/entrepreneur-engraved-sterling-silver-id |
Medical Insurance
Medical insurance can be very costly. Chances are, your employer is able to offer you medical insurance at a fairly low rate. Insurance for self-employed individuals can cost about $300 per month.
Life Insurance
I don't know if this is a common benefit for employers, but my old employer offered free life insurance up to the amount of my base pay. I could also double or triple this amount for a nominal fee every month. Individual life insurance plans will depend on the amount of coverage you want, your age and your past health.
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| https://www.etsy.com/listing/152747681/boss-lady-art-print |
Disability Insurance
Most full-time employees are offered disability insurance in the situation where you are unable to work for a period of time (surgery, car accident, etc). This may be full pay or partial pay depending on your employer and how long you have worked there. As a self-employed individual, have you thought about what you would do if you couldn't work. For a month? For six months? Definitely something to think about. Again, rates will depend on your age, the amount you want to collect each month, etc.
Retirement
My old employer offered a retirement plan where they matched a portion of my contribution. And they made it easy to participate as the money came (pre-taxed) out of my check each week. Now that I'm self-employed, that entire amount is dependent on me.
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| https://www.etsy.com/listing/96495579/personalized-keychain-hand-stamped-shes |
Taxes
When you work for a company, your taxes are paid each pay period before you receive your paycheck. This makes it easy to pay your taxes because you don't have to think about it and it's all taken care of for you. When you are self-employed you will need to pay estimated taxes each quarter. It really isn't hard to do, but you must budget for them. Not all crafty business owners are good at the business side of things. (left-brain vs right-brained). So this may be something you need to pay a profession to help you with. If so, you will want to budget for it.
While I don't want to discourage anyone from quitting their job and living their dream, I just wanted to point out some things that aren't always thought about when running numbers. I know I hadn't considered disability insurance until the other day. Just a little food for thought :)
Wednesday, March 12, 2014
Almost Wordless Wednesday - One Step at a Time
It seems like work on my new studio has come to a screeching halt! We only have a few more pieces of trim left, but it's taking forever to get everything finished. We did get my new computer desk put together though :)
Monday, March 10, 2014
New Recipe Books
Back in January I talked about my biggest goal for 2014 being Growth. One way I'm growing my business is by looking at items that sell well and expanding on their lines. As I showed last week, I listed several new button designs with still more in the works. I'm also working on new recipe book designs. I've listed three new designs in the last week and have seen a great response from them!
This tree design came as a custom request after seeing my carved tree guest book. I think it makes a great gift for newlyweds :)
And these next two are designs I've had in my head for a while now and finally got them made. Everyone has favorite recipes that Grandma and Mom used to make. These books are a great place to keep all those recipes.
In the coming weeks, I'm hoping to introduce new cuff link designs and wedding invitation designs. I better get back to work!
Friday, March 7, 2014
Friday Features - Welcome March
March is here and that means Spring is just around the corner! March also brings the aquamarine birthstone into action. Aquamarine is such a soft, beautiful color. I hope you'll enjoy today's jewelry finds... whether you're a March baby or not :)
Clockwise from top left:
Which is your favorite?
Thursday, March 6, 2014
Edi Royer, Inc
With each year that I run my business, I learn something new. Lots of new somethings usually. Last year I learned how much I hate to pay taxes! I know it's a necessary evil, but actually having to write a check to the IRS every quarter just plain sucks. So this year, I've been looking for better, smarter ways to run my business without giving my profits to the government. One change I recently made was to become an S Corp. As of February 26th, I'm officially incorporated! Hello Edi Royer, Inc!
I thought I'd share a few things I've learned about becoming incorporated and whether it is right for you. (Tax pros, please correct me if I'm wrong on any of this!)
The first thing I recommend is doing a pros and cons list. Looking at your numbers and seeing if this option is right for you. While there are tax cuts and you can save money, you also have to look at the cost of becoming incorporated. I will be paying roughly $1,000 per year for my monthly statements, quarterly statements and end of year return. As a sole proprietor, I only paid $100 for my personal return/Schedule C at the end of the year. So you need to know that your savings will outweigh your costs.
Your savings come in the form of less taxes. As a sole proprietor, you pay roughly 30% of your profit to taxes. This will depend on your tax bracket, but this is where I fell.
As an S Corp I will still pay 30% on my payroll earnings, but I can make this wage fairly small as long as it's a living wage. I still have to pay taxes on my businesses profits, but only roughly 15%. That change can make a big difference if you're looking at a healthy profit.
I advise sitting down with a tax professional and having them run your numbers to see if this change will save you money.
The biggest challenge for me will be learning a new software program and making sure all my numbers balance. Many people already use Quick Books, but it will be new to me. I'm still learning and just hoping that my numbers balance at the end of the month...fingers crossed! This means stricter book keeping on my part!
Something else to consider if you do choose to become incorporated is your corporation's name. My financial adviser through the name Edi, Inc out there and I just liked how it sounded. When we went to register the name, it was already taken...bummer. So I went with Edi Royer, Inc. You should choose a name that can be used for another business if your current one happens to close. I will still be Doing Business As (DBA) Memories for Life, but my corporation is Edi Royer, Inc. This way if I ever own a flower shop or a Radio Shack, I can keep the same corporation and just DBA a different entity.
If you stuck with me though this whole post, I hope it was informative and helped you with your business :)
Wednesday, March 5, 2014
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