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Το περιεχόμενο παρέχεται από το Eric Earle. Όλο το περιεχόμενο podcast, συμπεριλαμβανομένων των επεισοδίων, των γραφικών και των περιγραφών podcast, μεταφορτώνεται και παρέχεται απευθείας από τον Eric Earle ή τον συνεργάτη της πλατφόρμας podcast. Εάν πιστεύετε ότι κάποιος χρησιμοποιεί το έργο σας που προστατεύεται από πνευματικά δικαιώματα χωρίς την άδειά σας, μπορείτε να ακολουθήσετε τη διαδικασία που περιγράφεται εδώ https://el.player.fm/legal.
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Business 101 for Tutors

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Manage episode 302695055 series 2977278
Το περιεχόμενο παρέχεται από το Eric Earle. Όλο το περιεχόμενο podcast, συμπεριλαμβανομένων των επεισοδίων, των γραφικών και των περιγραφών podcast, μεταφορτώνεται και παρέχεται απευθείας από τον Eric Earle ή τον συνεργάτη της πλατφόρμας podcast. Εάν πιστεύετε ότι κάποιος χρησιμοποιεί το έργο σας που προστατεύεται από πνευματικά δικαιώματα χωρίς την άδειά σας, μπορείτε να ακολουθήσετε τη διαδικασία που περιγράφεται εδώ https://el.player.fm/legal.

If you're working for a company like varsitytutors.com, tutordoctor.com, or a local tutoring company, you can think of it like Uber driving. Uber uses contractors. The difference between a contractor and an employee is that for a contractor, you can choose to open your Uber app and select a trip. You don't have a manager telling you to go pick a ride up, right away. If that happened, you would be an employee and they would be withholding some taxes for you.

As a 1099 contractor, you are essentially your own business. Many people prefer to be contractors because you can work whenever you want. You can decide Wednesday nights are when you’ll practice your guitar. Whereas for an employee the company could say, “Put down the guitar, you have to go get this guy.”

The way a 1099 works is that if someone pays you over $600 in a given year they are supposed to report that to the IRS. If you make less than $600, they probably won't even report it. But when you reach that point the company will report your earnings to the IRS. So you’ll want to claim those earnings on your tax return as well. Otherwise, the government is going to see that things aren’t adding up.

If you're also working another job, like maybe you also work 15 hours a week for Amazon, and you have a W4 from them, you could do the maximum withholding for that job. That means they're going to take the highest possible amount of money out of your paycheck. Usually this would get you a tax refund at the end of the year. But if you're also doing some self-employed work, you won't necessarily get a refund but you won’t owe a bunch of taxes all at once, which is nice.

Consider starting an LLC for your tutoring business. There are many benefits to doing this. First, it’s going to give you some protection, because of what's known as the corporate veil. If you have an LLC, that entity is doing the tutoring and the business, not you personally. You want to create a separate bank account for the LLC to make it seem as separate from your personal life as possible and draw that distinction. You could even pay for things through that account, like if you're driving to a tutoring session, you could pay for gas with that debit card. Or if you have to buy a textbook or something, you could do it with that debit card. And the nice thing is that you're going to be able to write that off on your taxes come tax day. For example, let's say you earned $1,000 so you owe 20% to Uncle Sam: $200. If you've also been investing this year, and you spent $500 getting a website going, now at the end of the year instead of owing $200 to Uncle Sam, you only owe $100. So you just saved $100.

The W9 is going to be a simple form that your employer will send you. Just fill in your name, social security number, and address. They're supposed to have that on file for you.

If you get advice from an attorney or other business professional, they're going to want you spending money setting things up. But we want to do this for $30 in startup costs. So keep things cheap initially, see what's working, then invest money later.

  continue reading

14 επεισόδια

Artwork
iconΜοίρασέ το
 
Manage episode 302695055 series 2977278
Το περιεχόμενο παρέχεται από το Eric Earle. Όλο το περιεχόμενο podcast, συμπεριλαμβανομένων των επεισοδίων, των γραφικών και των περιγραφών podcast, μεταφορτώνεται και παρέχεται απευθείας από τον Eric Earle ή τον συνεργάτη της πλατφόρμας podcast. Εάν πιστεύετε ότι κάποιος χρησιμοποιεί το έργο σας που προστατεύεται από πνευματικά δικαιώματα χωρίς την άδειά σας, μπορείτε να ακολουθήσετε τη διαδικασία που περιγράφεται εδώ https://el.player.fm/legal.

If you're working for a company like varsitytutors.com, tutordoctor.com, or a local tutoring company, you can think of it like Uber driving. Uber uses contractors. The difference between a contractor and an employee is that for a contractor, you can choose to open your Uber app and select a trip. You don't have a manager telling you to go pick a ride up, right away. If that happened, you would be an employee and they would be withholding some taxes for you.

As a 1099 contractor, you are essentially your own business. Many people prefer to be contractors because you can work whenever you want. You can decide Wednesday nights are when you’ll practice your guitar. Whereas for an employee the company could say, “Put down the guitar, you have to go get this guy.”

The way a 1099 works is that if someone pays you over $600 in a given year they are supposed to report that to the IRS. If you make less than $600, they probably won't even report it. But when you reach that point the company will report your earnings to the IRS. So you’ll want to claim those earnings on your tax return as well. Otherwise, the government is going to see that things aren’t adding up.

If you're also working another job, like maybe you also work 15 hours a week for Amazon, and you have a W4 from them, you could do the maximum withholding for that job. That means they're going to take the highest possible amount of money out of your paycheck. Usually this would get you a tax refund at the end of the year. But if you're also doing some self-employed work, you won't necessarily get a refund but you won’t owe a bunch of taxes all at once, which is nice.

Consider starting an LLC for your tutoring business. There are many benefits to doing this. First, it’s going to give you some protection, because of what's known as the corporate veil. If you have an LLC, that entity is doing the tutoring and the business, not you personally. You want to create a separate bank account for the LLC to make it seem as separate from your personal life as possible and draw that distinction. You could even pay for things through that account, like if you're driving to a tutoring session, you could pay for gas with that debit card. Or if you have to buy a textbook or something, you could do it with that debit card. And the nice thing is that you're going to be able to write that off on your taxes come tax day. For example, let's say you earned $1,000 so you owe 20% to Uncle Sam: $200. If you've also been investing this year, and you spent $500 getting a website going, now at the end of the year instead of owing $200 to Uncle Sam, you only owe $100. So you just saved $100.

The W9 is going to be a simple form that your employer will send you. Just fill in your name, social security number, and address. They're supposed to have that on file for you.

If you get advice from an attorney or other business professional, they're going to want you spending money setting things up. But we want to do this for $30 in startup costs. So keep things cheap initially, see what's working, then invest money later.

  continue reading

14 επεισόδια

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