Starting a business changes your tax life completely. Most people find out the hard way.
What nobody tells you when you start
When you were a W-2 employee, taxes happened automatically. Your employer withheld federal and state taxes, paid half of your Social Security and Medicare, and sent you a W-2 at the end of the year. The moment you go into business for yourself, all of that becomes your responsibility.
Self-employment tax alone catches most new business owners off guard. As a sole proprietor, you pay both the employer and employee sides of Social Security and Medicare — 15.3% on top of your income tax. Nobody warned you, and the bill at year end is bigger than you expected.
Another common mistake: electing S-corp status too early. The S-corp saves on self-employment tax — but only above a certain profit level. Below that threshold, the added cost of payroll and compliance outweighs the savings. Timing the election right matters.
You don’t know what you don’t know. The goal of startup consulting is to make sure you know it before it costs you.
What we cover
Understanding self-employment tax
What it is, what you’ll owe, and how to plan for it so it doesn’t blindside you at the end of your first year.
Estimated tax payments
Without an employer withholding taxes, you’re responsible for paying quarterly. We show you how much and when.
Entity review
You may already have your entity set up. We’ll make sure it still makes sense for where your business is headed — and whether an S-corp election belongs in your future.
QuickBooks setup
Getting your books set up correctly from day one is far easier than fixing them later. We set up QuickBooks the right way for your entity and your business.
Financial foundation review
Separating business and personal finances, understanding your chart of accounts, knowing what records to keep — the basics that make everything else easier.
The right time to start
The best time to get this right is before anything goes wrong. An hour of conversation at the start of your business can save you thousands in your first year — and prevent the kind of surprises that derail businesses that were otherwise doing well.