Queercents

Self employment offers many benefits. You can be your own boss, set your own hours, and even control your income to some extent. Unfortunately, it also means walking away from corporate benefits, including health insurance, 401K plans and more. While you can easily save for retirement with an IRA, finding good quality and affordable health insurance for you and your family is much more of a challenge. Explore your options and consider what you can do to keep critical health care protection in place without draining your bank account.

If you are just starting your own business, you may be able to continue health care coverage from your previous employer for up to 18 months using COBRA. This option can be cost effective, depending upon the insurance plan. It can also prevent any lapse of coverage. In any case, this is a short term solution to a long term issue for entrepreneurs and the self employed.

Health insurance can be purchased via an online or in person insurance broker, much like home owner’s insurance or auto insurance. Insurance brokers can assist you in finding a plan that meets your needs for the best price available. Include only services that you will need and use in your coverage, if at all possible. A single man has no need for maternity coverage. Consider joining a trade or small business association for group plan options. Some trade associations offer group health insurance or discounts on individual plans. You might also consider checking with your state. In some states, health insurance plans may be purchased directly through the state for individuals without access to group plans.

Many entrepreneurs opt for catastrophic care coverage. These plans have a higher deductible, but much lower premiums. While this sort of health insurance is not ideal for anyone with regular health care needs, it can be quite adequate for young and healthy individuals. Catastrophic care insurance can be combined with a Health Savings Account can provide an affordable alternative to more comprehensive insurance plans.

If you have pre-existing conditions that preclude purchasing standard health insurance, see if your state offers a guaranteed-issue plan. While treatment for your condition may not be covered, unrelated health issues may be.

See insureuonline.org/smallbusiness for further tips and information on health insurance for entrepreneurs, freelancers and others without access to group plans.

Queercents.com is back and we thought it would be good to start out with an article about money making in these tough times.

In today’s tight economy, many people are finding themselves in need of extra money due to a job loss, higher bills or other worries. While fewer people are spending, you may still find that you can bring in a little extra money online. Keep in mind that some services may charge fees and have additional costs that can reduce your overall profits. Working smart can help you make extra money off items you have around the house or simple old fashioned hard work.

E-Bay remains a popular choice for both buyers and sellers. While seller fees have risen in recent years, e-Bay remains a good option if you need to sell collectibles, electronics, or higher quality items. Small items and handmade goods sell rather poorly on e-Bay and fees may eat up your profits if the margin is slim. Avoid selling items with a poor profit margin and take advantage of flat rate shipping options offered by the US Postal Service for the most convenient shipping. You can even have packages picked up at your home if you print postage online.

Craigslist is an excellent choice whether you need to sell something or offer a service. Be sure to carefully read the terms of use and make sure that your ad is acceptable. Furniture, cars, boats, clothing and household goods can all be sold via Craigslist. You can also offer up cleaning services, yardwork, home maintenance or any skill you may have that someone else can use. Consider offering skills for both cash and trade. You may be able to swap house cleaning for hair cuts, yard work for a new television or computer repair services for car repair.

Small scale service businesses remain a good source of side income. Consider your marketable skills. While today’s economy is tight, home organization, cleaning, and party planning can still be profitable if your prices are reasonable. Baby sitting, pet sitting or elder care are also necessary businesses even in a tight economy. Computer repair, car repair and handyman services are also in need. You may want to make simple flyers and post them on bulletin boards in your community, as well as in local online resources. Collect references or examples of your skills if at all possible and market yourself well for success. While it’s unlikely you can make a significant income, these options can help provide a critical financial cushion.

As a question that comes up constantly, these are the definitions per the IRS which will hopefully clarify questions you may have.

The period of limitations is the time in which you as the taxpayer can amend your tax return to claim a credit or refund, or the IRS can assess additional tax.  Unless otherwise noted, the years refer to the period after the return was filed.  Returns filed before the due date are treated as filed on the due date.  Also note that you should retain copies of your previously filed tax returns.  They help in preparing future returns and make computations if you need to file an amended return.

1. If you owe additional tax and situations (2), (3), and (4), below, do not apply to you, keep records for 3 years.

2. If you do not report income that you should report, and it is more than 25% of the gross income shown on your return; keep records for 6 years. Read the rest of this entry »

As a child in the 1970s, I felt like I was living on the edge of a green pasture. The baby boomers were piled ahead of me and it was a time of profound economic growth. I walked past schools that were overflowing with portable units to manage the crowds, but by the time it came for me to enrol in them, they were closing down from the lack of enrolment. I realized that we live in a financial environment the way animals live in a habitat, and that it affects us on a very personal level.

Economic growth that happened during my toddlerhood had given way to inflation that marked my childhood, the way a big parade leaves a trail of garbage in its wake. When you’re tagging along at the tail end, you know there’s been a big party ahead of you, but all you cansee is litter and the clean up crews. It was a bit like growing up in the line up for an amusement park that had, just that minute, declared itself full to capacity and pulled the rope across the door just as you got to the front of the line.

I am the demographic leading edge of Gen X, and have found this has had a huge impact on me financially. As a child, I grew up in a sense of wealth and rising prospects, but also profound inflation and a confusion about what things were fundamentally worth. As a teen, I entered the workforce into an economy undergoing the flood of young adults into the labour market. Younger, and with less experience, I couldn’t find jobs. Anywhere. I spent my summers at the beach and couldn’t decide if I was lazy or lucky. I redirected back into school because I wanted to be a professor, but by the time I graduated from my B.A. there were already hiring freezes in universities across Canada. Read the rest of this entry »

Last month I had another of my podcast interviews and this time with Julie Roads of Writing Roads, LLC.   Julie is a professional marketing copywriter, speaker/workshopper and consultant with a specialty in web & blog writing and activating social media authentically to grow any business.  I first met Julie online, most likely through my writings here at Queercents. As I got to know her work more I was thrilled to get a chance to sit down and talk with her one-on-one about what it takes to be successful as a self-employed writer.

In our time together Julie shares a lot of great tips for all aspiring writers and freelancers.  She also talks about the joys and challenges of raising her kids with her wife.  Julie is a social media expert with a knack of building community online so you’ll want to check out her musings on Twitter as well.

Head on over to listen to the comfortable in your own skin podcast with Julie Roads.

For my articles at The Advocate, I’m always looking for interesting sites or services to write about that are related to personal finance. So when I learned about ShortTask.com through this post at Gay List Daily, I decided to take a look:

The newest tool in the fight against unemployment is ShortTask.com… All jobs listed on the site are short term, temporary positions or tasks that pay in small amounts, but can really add up if you’ve got a knack for freelancing. Some are rather menial (adding websites to search engines) and some perhaps unethical (adding positive reviews to product list sites), but, as most sites we frequent, there are a few diamonds in the buff.

With a little extra money from the random data entry or research gig, we can once again rev up our engines with that debilitating and fiscally draining vice – our daily Starbucks addiction.

Sounds interesting, right? That is until you start looking at what the “tasks” pay. Many of the listings I observed pay a whopping $0.05 to $0.20 per task. Read the rest of this entry »

If you use a portion of your home for business purposes, the option of a home office deduction is available meeting specific requirements as stated by the IRS.

1. The area in your home must be your principle where conduct your business and not used for ANY other purpose.

2. You see clients, patients, customers, etc. during your normal business hours at this location.  The location doesn’t have to be a separate building but must be used in connection with your business.

3. You utilize the location for storing inventory, product samples, etc.

4. The location is used as a rental property, home day care facility, etc.

How do you claim your home office deduction? It’s all based upon the percentage of the home that you use for business purposes only.  Also your deduction is limited if your gross income from the business is less than your total business expenses.  Such expenses that are available for deduction include: utilities, property taxes, and dedicated telephone line(s) which can be deducted at 100%. Read the rest of this entry »

I’ve learned to be very very careful when working with new customers.  The point is that when times are tough, it gets tougher to be paid.  People are always trying to talk down your price, nickel and dime you, and then rarely gets to a point where a client fails to pay you and you either have to take them to small claims court or file a 1099-C with the IRS.  Here are some tips to consider when evaluating your new customers.

1.    There are numerous credit reference checks available on-line, which is the best way of finding one that you want and modify it in the form that fits your needs.  However, a key portion of that form should be that the vendor provides at least three vendors that you WILL contact and they agree to you being able to contact them inquiring about their payment history.

2.    Find out what from these reference checks, is their payment history, how often do they purchase from the vendor, and a general range spent.  If they are buying once every 6 months and spending only a few hundred dollars, this is not a great representation even if they pay them within 30 days.

3.    Are these potential “buddies” of the business owner who will say anything on your potential customer’s behalf?  Try to speak directly with the accounting person, as they often have no ties to the buddy system and they are going to give you a more accurate reading of how they pay their bills. Read the rest of this entry »

With the economy in the doldrums, many folks are starting businesses to bring in a little side money. If you decide this is for you, there are a few important steps to take in forming your new venture.

I’ve written before about the importance of forming a limited liability company (LLC) to protect your personal assets. Today, I’d like to discuss the advantages (and disadvantages) of forming an S corporation.

Self-employment tax

Whenever you earn money not as an employee, you owe self-employment tax, in addition to income tax. It doesn’t matter whether you’ve formally incorporated, filed as an LLC, or are just going door-to-door peddling homemade soap; it’s income, and you need to pay Uncle Sam his share. The self-employment tax is 15.3% of income (revenue less expenses), which is a hefty bite. Unlike income tax, the self-employment tax rate is fixed — not progressive — the smallest street vendor pays the same rate as a high-end attorney.

Self-employment tax pays for Social Security (12.4% — up to the first $106,800 (2009)) and Medicare (2.9% — no income limit). If you are an employee, you and your employer each pay half of this amount; as a self-employed person, you get to pay it all. Read the rest of this entry »

So, you’ve gone to a networking event, (or like me, just gotten home from BlogHer ‘09), and now you have a pile of business cards and new contacts. What do you do next? It can sometimes be a little overwhelming but follow up is a critical element in making the most of new connections you make.

Have you ever left a powerful event feeling all inspired and excited about the wonderful people you met? Then, you went home and absolutely nothing happened. Life got in the way, you were backlogged on emails from being out of town, or you suddenly had projects on deadline. Either way, the connections and event become a distant memory and opportunities go by the wayside. It is a sad reality for so many. As people we really do want to help one another and cherish the connections we’ve made but somehow it slips away.

It doesn’t have to be that way. Have a follow up strategy in place before you go to an event (and it helps to have one in place at all times for that matter) and then execute when you get home. Larina Kase calls this networking issue #3 in her post “Is Networking a Waste of Time?”. The solution she offers:

Only attend if you can commit to following up. Schedule follow-up time on your calendar before you even arrive at the event. Adopt a less is more mentality. It’s often better to meet fewer, higher-quality contacts than to leave with a stack of business cards. Don’t count on others to follow-up. Make it your responsibility.

Now remember I said strategy for follow up not cookie-cutter crapola. Read the rest of this entry »