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Thread: Small Business

  1. #21
    Quote Originally Posted by LaMemChose View Post
    Thank you, Scott. This is amazingly great stuff to know. You've had your own biz, know the ins and outs.
    Sure thing. I'm slowly phasing out of a LLC that I've had for a while, but currently investigating the possibility of starting something different once I finish grad school. This crap is on my radar as well.

    The health insurance is a concern, but only for biggies should something huge happen. My claims over the last couple of years have been for abx, the occasional chest x-ray. anti-seizure meds, generic Ditropan, caths, bowel gear. All managable out of pocket without major insurance claimage.
    For clarification, I'm not saying decent health coverage whilst self-employed isn't possible, but it is more difficult (or costly). Just understand that insurance is all about calculated risks, obviously tough to predict w/ SCI, but sometimes it's better to realize that cash can offer freedom and that dependence on big insurance companies isn't critical.

    Do find a way to stay covered w/o a lapse though, which'll keep you insurable despite pre-existing conditions. Coupling a high-deductible policy with a HSA (health savings acc't) is something worth considering, and one I'll personally be looking at in the future... I'm not familiar enough w/ all the details yet, so take this w/ a grain of salt.

    Being self-employed gives you control over your biggest weapon: INCOME. If you can find a way to jack your income up by $10-20k or so (look for passive income streams if possible), the game is totally changed, especially if you don't need the extra $ to live on.

    I am living like an impoverished student by choice (have been for a while), squirreling away all I can. I've determined the minimum needed to exist personally by literally living on the frugal side of frugal. The lean living has been good in many ways, IMO.
    understood.

    Really appreciate the info on forming a distinct and separate entity via Incorporation. Getting an LLC is a got to.

    Glad to know this is potentially less risky than it appears first blush. It's both exciting and scary, but less scary the more I learn. Knowledge is everything in this.

    Thanks, Scott.
    disclaimer: I'm not a pro at all the legal stuff, and it'd likely be advisable to talk to a lawyer/CPA/whoever about the details of your situation.

    I do know that if you appease the government (federal/state/local) by paying your dues and filling out a few forms as needed, they'll stay off your back & everything else business-related is up to you. It's kinda a cool feeling.
    Last edited by -scott-; 01-19-2011 at 10:46 AM.

  2. #22
    Quote Originally Posted by -scott- View Post
    Sure thing. I'm slowly phasing out of a LLC that I've had for a while, but currently investigating the possibility of starting something different once I finish grad school. This crap is on my radar as well.


    For clarification, I'm not saying decent health coverage whilst self-employed isn't possible, but it is more difficult (or costly). Just understand that insurance is all about calculated risks, obviously tough to predict w/ SCI, but sometimes it's better to realize that cash can offer freedom and that dependence on big insurance companies isn't critical.

    Do find a way to stay covered w/o a lapse though, which'll keep you insurable despite pre-existing conditions. Coupling a high-deductible policy with a HSA (health savings acc't) is something worth considering, and one I'll personally be looking at in the future... I'm not familiar enough w/ all the details yet, so take this w/ a grain of salt.

    Being self-employed gives you control over your biggest weapon: INCOME. If you can find a way to jack your income up by $10-20k or so (look for passive income streams if possible), the game is totally changed, especially if you don't need the extra $ to live on.


    understood.


    disclaimer: I'm not a pro at all the legal stuff, and it'd likely be advisable to talk to a lawyer/CPA/whoever about the details of your situation.

    I do know that if you appease the government (federal/state/local) by paying your dues and filling out a few forms as needed, they'll stay off your back & everything else business-related is up to you. It's kinda a cool feeling.
    Scott, you always just keep plugging along, this time at grad school. Good going.

    The info you are sharing and your suggestions are greatly appreciated. You've been there, are doing it, looking ahead to starting another business post grad degree. You have a wealth of experience about what does and does not work, could, might and probably won't.

    I'll not allow a lapse in health insurance coverage. It would exceed the nightmarish. Also, I get that cash is king, especially in healthcare.

    The HSA is a great idea.

    An attorney is a must for me on this. I'm good with that, find it a comfort somehow.

    You are heard loud and clear on compliance with rules, regs, form filing, etc. No problem on doing that. It's a got to on the front end, will avoid a million little problems down the road.

    This can feel overwhelming, but is exciting, too. Each segment of the larger plan I work out by piecing the details to get there has me closer to my goals. It's like the old adage about how to eat an elephant.

    Thanks again.

  3. #23
    Subscribing to a thread with good information.

  4. #24
    Senior Member Kulea's Avatar
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    First on the financial end:
    Once you form an LLC, then elect to be taxed as an S-Corp. While this adds a little to the paperwork, there are 2 huge advantages. 1. you pay yourself a salary (whatever amount that seems reasonable for the actual labor). Doing this means that you only pay payroll taxes on that part of your income that is salary (this is where the extra paperwork comes in) and you don't have to file self employment tax on your returns. This potentially saves a lot of money in taxes. 2. many government benefits look at "earned income" as a qualifying standard. Only the salary portion of your income is counted toward "earned income", thus if your salary is low enough, you maintain your qualification. This benefit is especially true if most of your income is from passive sources (rent, investments, etc). If don't pay yourself a salary, then all of your income is considered "earned". The only way to separate your income is to elect S-Corp taxation. You maintain the simplicity of an LLC structure, but the tax benefits of an S-Corp.

    Insurance:
    Medicare is by far the cheapest option and you should be able to remain qualified quite a while even after you stop receiving SSI. But, eventually, you will lose it. But, after 5 years of paying payroll taxes, you should be qualified to receive SSDI and thus re-qualify for medicare. Because of Obamacare, I think that insurance companies can no longer deny benefits (that might not start till sometime later). Here in Hawaii, employers are mandated to get insurance for their employees, and thus insurance companies can't count a pre-existing condition. So, as an LLC paying a salary, you would qualify to get a corporate health insurance plan, which is much cheaper than an individual (mine was under $300/mo). If they can't discriminate based on your pre-existing condition (which I would suspect should be true for most corporate plans), your premium is based soley on your age, sex, etc.
    C-6/7 incomplete

  5. #25
    Update from my last post in this thread~

    It's been a while and I have been busy moving ahead with what I want and plan to do. I've been schooling myself on biz/corporation types, bennies and downsides of each, business licenses and regs, fictitious biz name as my future company will not be the same as my own legal name (dba or doing business as), intellectual property, copyrights, patents, insurance, liability insurance, current/future competition, sourcing raw materials, wholesale, retail, billing, C.O.D./net 30/net 60/net 90 depending upon order/rep of purchaser, opening minimum order $ amt. for my products, packaging, shipping, merchandising, marketing (p.r., publicity, biz contacts, advertising, etc.), balancing the creative while dealing with biz side of things, writing biz plan, establishing amount needed for initial investment (saving it as I write- no debt ), biz banking, biz accounting including taxation, professionals for initial legal and accounting of biz, on and on.

    My head would swim from it all except I really enjoy understanding the business side of a future creative business. That statement is not as redundant as it initially reads. If I establish this in as organized, as thorough and as proper as humanly possible initially, it should make it easier on the biz and upon me as I go. At least that is my thinking.

    Anyway, for anyone thinking about forging ahead as an entrepreneur, be prepped to spend time researching what you want to do, being open to other possibilities/opportunities in what you think you want to do (opportunuity and passion may not reside exclusively, solely or at all in what you first think). Realize you may underestimate the time needed to establish the biz side of your future biz unless you have an MBA.

    That's all for now. Back to the books and the drawing (make that a literal drafting table here) board.

  6. #26
    LaMem, if it's not a secret, what will you be selling?

  7. #27
    i'm sure things have changed alot, but we had 3 retail stores in 3 different malls and cities of course, i made to much money to qualify for disability or medicare, at the time it wasnt but 700 a month and i had a house payment, child support and medical for my son, electric bills, car payments, these are all incomes that u have to claim and cannot get around no matter what, i had them before my accident, so they carried over, i never stopped the business' and restarted the whole shamoo, which i could of, alot of paperwork plus tax codes under clinton where alot different than they are today......i had to just get private insurance and it started out about 800 a month, then it just went up 250 a month every year till i closed them from a pressure sore in 2000, i was paying right at 1950 a month for insurance, got my ssdi and medicare then found out i was eligible for my VA benefits all along, best i can figure i paid out around 150-200 grand in insurance payments or so counting my sons, his was 275 a month consistently.....but back to loosing your disability, now you can make up to 900 a month, unless its changed now and still keep your medicare and ssdi, and u can also take off any expences incured by going to work, transportation, clothes, etc. u do have to itemize, but u can also for the first 3 years make as much as you wish but u will also loose your ssdi and medicare after the 3 years...so of course its better to stay under the 900 a month, but if you plan to own a home and a such that will be very hard to do........its a catch 22, we can't get insurance but if we go to work then we can't afford it, thats why most do there work either under the table, or try to open a business that makes u a millionaire, which is few and far between, if u got something that good, the best business' in the world only will make you around 11 percent profit, u can do the math as what it would take for u to make enough money to make it worth your wild...good luck and i wish you the best, i would also go see my social security office and talk to them, they are changing stuff all the time, they might have alot of stuff to help u now that they didnt have before..........just my experience......

  8. #28
    Quote Originally Posted by Scaper1 View Post
    LaMem, if it's not a secret, what will you be selling?

    Hopefully art, designs, related products.

  9. #29
    Airart, thanks for sharing your experiences.

    I'm dealing not only with SSDI, but also LTD. I'm fortunate and know it. There is a lot to lose. much at stake, but it's that way for every person here. Not doing this could be an even greater risk for me as a human being.

  10. #30
    LTD? i don't know what that is, but if you can do it then i'd go for it also, u only live once, i worked at mine for 15 years, 7 days a week 14 hours a day, so i'm sure if u got the gumpshun u can make a good go of it and enjoy your life........it will be a great experience.....

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