Over the last handful of years, it has become clear that more people are open to working for themselves, even if it is just a side gig. Technology has helped this happen, since there are more ways to connect those looking for services to those who provide them. Just how much younger people are weighing the value of being your own boss seems higher than was imagined, though. Recent research found that seven in ten young adult job seekers say being your own boss is more valuable than the security of working for someone else.
A lot of that generation is planning on putting that feeling into action. The same research also found that 53 percent of recent graduates said they are likely to start their own business. And sure, the number that actually goes ahead with that in their working lives is going to be smaller, but it is still important to appreciate how that number is growing from previous generations.
No matter what generation you are from, there is a lot that goes into starting a new business. A recent article from Accounting Today looks at these numbers and then passes along some advice and pointers from the American Institute of CPAs for those looking into starting a business. So if this is something you are thinking about, take a look.
Coincidentally, The IRS also recently released some tips for people who are looking to start a business, a little more of the nitty-gritty stuff that needs to be thought about than the AICPA’s big-picture view. Both of these looks are important. You need to think big to have your general finances and mindset in a position where you can experience future success. These IRS tips are also important, though, to make sure you do the correct things in the beginning to make sure you are set up legally.
I think a lot of those seemingly smaller things are important to know about because of where a lot of these potential new business owners come from. A lot of this younger mindset comes from the gig economy where you are nominally working for yourself because you are a contractor with no set hours, You are benefiting from a business setup, though, that was done elsewhere by others. If you want to really own your own business, those become steps you must personally take.
Like when you see that LLC at the end of a business name, it means something. You may want one of those with your business, but then again, you may not. When it comes time to pay taxes, are you going to use the calendar year or a fiscal year? Do you have an employer identification number? Do you know what needs to be done when you hire employees?
Some of these may be things you only have to think about once, but you definitely have to think about them. We love working with new businesses, to see the passions that drive people to take the chance on themselves. We also love making sure they do everything right. So if these are things you are thinking about, but could use a little guidance, don’t hesitate to contact us and set up an appointment.
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To ensure we don't make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.