Start a Business vs. Work as an Employee

When I was a kid, they just told me a lot of things about the business, and I'm also very interesting about that; at that time I already know Bill Gates, he is the richest people of the whole world and I think he's the most successful people on the earth. He is very famous in China, and Bill Gates affects my thinking about the success. I want to start my own business, I think to have my own business is a success. If I only can work for others, I think I can't do anything I want and will never be successful, the boss will always command me to work for him and get more money to him. In the article, "Someone Is Stealing Your Life," the author also maintains that the employer and the employee are not equal, the author mention that "if the people who do the work don't own any part of the product and don't have any power over what happens to their enterprise - they are being robbed." (Ventura, 254) The author said most of the employee are robbed by the employer, I agree the author's view and I think to avoid this kind of situation I have to start my own business for being successful, and this is my dream. Now I already began to make a plan for starting the business. Sometime I will also discuss with my friend about this, because I also have thought about to cooperate with my friend, it will be very hard and challenging, but if we can make it, we are successful! That's the first aspect to achieve for being successful in my definition, if you can

Employees appreciate being able to have a life outside of your business. Being supportive of that can be a strong motivator.

John will have to pay self-employment tax, which is the gross income that obtained in business in the amount of $300,000. He will actually have to pay "income" and "self-employment" tax on the "net" earnings from his business... not the entire $300K because presumably he has

Sole Proprietorship Sole proprietorship is the most common form of business in the United States. It is a relatively simple way for an individual to start a business since legal costs and business requirements are minimal, and the owner has complete control over the business. Though a sole proprietor is not responsible for any corporate tax payments, the owner is responsible for taxes incurred on the income generated from the business as part of his or her personal income tax payments, and personally shoulders any other risks or obligations. A sole proprietor may also choose to file their business under a fictitious business name or a DBA (doing business as), allowing him or her to operate and market the business under a more typical

Income taxes- All income generated through a sole proprietorship is taxed by the Internal Revenue Service. This is reported on the owner's personal tax return.

If you start your own business there are many benefits but if you do not know what you are doing, you will fail. You must have a motif, a passion and be willing to sacrifice in order to do what you have to do. Having a business has many benefits like having the ability to fluctuate your hours, building relationships, sharing your knowledge or products. But managing a business is not easy it takes a lot of hard work, dedication, and consistency. A business could make millions one year then be bankrupt the next because the economy is not always the same. You must be able to manage your money well because you must have capital to buy inventory whenever needed, while maintaining a budget to support your family, and to put money away for retirement. Because you could have one really good month but then next month could have no consumers. So your business must be your

INCOME TAXES – As a sole proprietor all business income or losses must be reported as personal income tax. The business itself is not taxed separately.

Owning your own business is just about every person dream. To be one’s own boss and have the control, to make the money, the have the power, but to be able to make a positive impact one not only the community but individuals is a great way to be a truly successful businessman. To know that you have helped your employees to succeed and to make a great impact in them a person that is the kind of boss I want to be.

The last business option that will be discussed is the Corporation. A Corporation is “a fictitious legal entity that is created according to statutory requirements” (Cheeseman 478). The biggest advantage of a corporation is the protection of personal assets. Shareholders, directors and officers are typically not liable for the company’s debts and obligations. This is limited to the amount of money they have invested into the corporation. Since the corporation is separate from the owners, transfer of ownership is an easy task. Also corporations are generally taxed at a lower rate than individuals in the United States. A corporation is not as simple to form or maintain as other business formations. Articles of incorporation must be filed with the secretary of state and an organizational meeting must be held to elect a board of directors. A corporation also requires, at the least, an annual report so that creditors that do business with the corporation can determine the creditworthiness of the corporation. Also the corporation is taxed on its profits

The tax rate varies by income and deductions. In 2016, the tax rate varied from 10% to 39.6%. Employers are then responsible for submitting the employee taxes to the IRS according to the IRS deposit schedule. In addition, the employer must file forms 941 and W-3 and providing employees with their W-2 forms each year.

Even though there are also many advantages of a sole proprietorship, there are other alternative forms of business organizations that I would recommend, such as a general partnership. A general partnership is a form of business organization that comes into existence when two or more persons carry on business together with a view to a profit. In order to form a general partnership, a series of criteria must be met and understood such as; the partnership must register its name and obtain a business license, a partner cannot be employed by the partnership, all benefits of the partnership business must be received by the partners directly, all partners are personally liable for all the obligations of the business.

Breaking down self-employment tax can be classified into two realms. First being in the form of an individual’s income derived by their trade or business and the second being the income or loss by the individual’s partnership of said trade or business. This self employment tax is levied on income in excess of $400 and is in exclusion of real estate rentals, dividends, interest, capital gains tax,

All you need is money and a realistic vision. 4) Another advantage of a sole proprietorship is that you pay lower taxes. This happens because as you own your own business, the earnings are considered as the owner’s personal income. Because of this, the sole proprietor may be subject to lower taxes than other forms of businesses, such as a partnership or corporation. 5) In addition to all the other advantages listed, another advantage of owning your own business is that you, the owner determines how much you want your firm or company to grow. You decide if you want to stay a small business or expand, whether it be locally or nationally. This can be advantageous because the owner can determine whether it’s better to stay small or grow. If you’re business is successful, you may want to expand to reach more and more clients, helping you make more money and to establish your firm as a successful one. Or you might think that it might be better to stay small and local, because you might not want to take a chance because you might not want to mess with a good thing. Whatever the situation, the owner decides what suites the company.

To become an entrepreneur is to take risks of taking all the responsibilities of the company. This can be very heavy for me, but the feeling of being my own leader and making my own decisions is something very stimulating and motivating. True, the client will be a king but as an entrepreneur, I will have the power to decide. This is very beneficial from a personal point of view and strengthens self-confidence. To create a business is to carry a personal project that aims to be its source of income. What could be more motivating as a challenge? A project that involves. Entrepreneurship turns out to be the most exciting experience that I can live. Of course, stress and overwork will be in ambush in this challenge, but that is part of the game.

When I went back to my notes that I took during the Taxation class and think about filing a tax return with IRS I see that there are a lot of similarities between individual tax and business tax. However, weighing individual and business tax on the same gauge will evince how much they are different from each other (Pack, n.d.). Individual taxation is a type of tax return filed by an individual for both single and married taxpayers whether they have dependents or not, they will file the tax returns on Form 1040. The Form 1040 indoctrinate tax filers for information on their filing status and number of dependents, the income section includes wages, salary, taxable interest, capital gains and other types of income. filers can claim deductions for expenses, education, moving expenses and many other categories.