[Janice]

1. Yes, there’s a section on the Schedule C of your tax return that allows for home office deduction

2. You want to avoid intermingling personal with business expenses. When you’re starting out, it’s bound to happen but you’ll make your life easier by using a business card for business expenses.

A separate bank account you use for business is good enough until you decide to open an account under that name

2a. Form an LLC. You’ll be a single member LLC and have protection from liability should someone end up suing you or going after your assets.

As a solopreneur, anything is up for grabs if someone comes after you. Tax return doesn’t change if you form an LLC

3. As I understand it, internet and phone can be partially deductible depending on your situation. Utilities are a rental deal so I’d ignore that. Talk to a tax CPA about your setup

4. This is indeed a creative write off — I’d talk to your CPA about this one since we don’t have full context

5. Several ways to do this but you can start with a consult call and ask questions specific to your goals.

A tax strategist could be helpful later too

6. Haven’t heard of writing off health insurance — that probably depends on how you’re set up as a business but since you’re a solopreneur, this is likely a no-go

7. If it’s related to the service you’re offering, absolutely

8. Too much to put in one bullet point.

I’m sure there’s podcast episodes on this but the cool thing is you can max out your 401k and still contribute to a SEP-IRA/Solo 401k. Best to research the difference to start

9. Just stay organized. If you’re using one business card, one bank account specifically for business — you’ve won half the battle.

Quickbooks isn’t really needed if you have one revenue stream and a low volume of expenses you can track (I can recommend software for this)

Although I don’t do taxes, I am a CPA and work with entrepreneurs. Always happy to help think through situations and move toward your goals

[Shawn]

1. You can write off the space exclusively used for business. That can be part of a room, but those square feet need to be exclusive.

You can do it as a percentage of actual expenses for the home or use the simplified method per square foot.

2. Yes, get a separate account. An LLC is pretty easy to set up but not required. An LLC does not change taxes.

3. Phone and Internet are questionable deductions unless they are used exclusively for business.

Mortgage interest and utilities could be apportioned with the home office if you choose not to use the simplified method.

4. If you are eating with a business associate yes. Don’t get too creative.

This should be occasional, not every meal you eat with your wife for instance. Meals are 50% deductible.

5.

6. Yes, it will not lower your self employment tax but will lower federal and state taxes.

7. If it’s directly related to your line of work, yes.

8. These are great. Do it!!

9. It’s really up to you what program you use. I use Wave instead of QuickBooks because it’s free.

[Chrissy]

I can’t get past the job that pays $80k per year for 1-8 hours of work per week with full benefits.

Am I reading that correctly?

[Cathy]

Have a dedicated checking account and credit card ONLY for business. and NEVER put personal expenses thru that account.

You need some type of accounting system. QB is very good but ensure it’s set up correctly with the chart of account.

Hire someone to set it up. It’ll take less than an hour.

There are tons of videos on how to work in QB but if it’s not correctly set up the reports will look nice but will be completely incorrect.

Excel is NOT an accounting system.

[Author]

Posts