Always great partnering with such a great group of Solopreneurs. Lets do it again sometime
Currently crushing on our friends Collective after our amazing Office Hours session last week. 🥰 Thanks to Marissa Achanzar and the team for supporting the design community! We dug into some of the most important (but often confusing) topics for freelance designers: business structures, self-employment tax, and setting up your practice for long-term success. Key takeaways for designers: 💼 Business Structure 101 Start simple with a sole proprietorship, but consider an LLC or S-Corp election once you're consistently earning $60K+ annually. The tax savings can be substantial, but the complexity isn't worth it until you hit that threshold. ✅ Self-Employment Tax Reality Check You'll pay both employer and employee portions of Social Security and Medicare taxes (15.3% total). Plan for this by setting aside 25-30% of your income for taxes quarterly. 💰/💰 Best Practice That Pays Off Separate your business and personal finances from day one. Open a dedicated business checking account and use it exclusively for client payments and business expenses. This simple step will save you hours during tax season and protect you legally. We loved Marissa's encouraging approach—she reminded us that simply being curious about these topics means you're already ahead of the game. No question is too small when it comes to protecting your creative business. 🏁 MUST READ! For those who missed the session, Collective's Self-Employment Primer is an excellent foundation: https://lnkd.in/e3DUgqPJ -- Note: This information is not to be taken as legal, tax, or financial advice. You should consult with your attorney and/or tax advisor to get answers to your specific questions. -- What's your biggest question about freelance business structures or operations? 🤓