Entrepreneurs looking for the right place to launch a company these days would be crazy to ignore what’s happening in Utah. The area known as Silicon Slopes — which includes Salt Lake City, Lehi, Provo and Park City alike — is rapidly emerging as the new national hub for both mega-companies and startups alike.
Ogden, Utah, has a lot to offer entrepreneurs. From its beautiful historic architecture on 25th street and loads of gorgeous mountain scenery to its comfortable affordability and housing, freelancers and other self-employed professionals have every reason to love the city and all its surrounding locations. It’s the perfect place to launch your business and turn your dreams into a livelihood.
However, tax problems can derail your plans before you get very far if you make a serious mistake — and taxes for the self-employed can be complicated. At tax time, a lot of self-employed people start having their friends who only have a few W2s to file (and we don’t blame them).
Let’s talk about some of the most important things you need to know about your taxes if you’re self-employed.
When you establish a business, one of the first things you need to do is decide on the business structure. The most common types are sole proprietorship, LLC, LLC acting as an S-Corp, and S-Corp. Your decision will impact many things, including your capability to raise money, your control over business operations, and the amount you pay in taxes. Understanding the differences to compare the advantages and disadvantages of each option is the best way to ensure you make the right choice.