Chapter 1: Freelancers & Small Businesses: A Booming Market for Accountants, Bookkeepers, and Tax Preparers
There are two types of small businesses:
- Those that know they're a small business.
- Those that don't.
Mom-and-pop corner stores, independently owned auto shops, and independent consultants all have a solid understanding that they are indeed businesses and have more tax obligations than employees. However, some people have the same responsibilities and status as these businesses but they just don't know it.
For instance, say an individual does part-time freelance work as a graphic designer and files a 1099 as part of her return. As far as the IRS is concerned , that self-employed person has the same obligations to pay quarterly taxes as does a small-business owner. This individual may think she's just doing part-time gigs and earning some side money, but she is technically a small business.
What does this mean? It means that there are a lot of people who need your advice and expertise and might not know it.
Of the nation's 53 million freelancers, many don't know they have to pay quarterly taxes.
Next: Part 1: Working with (and Educating) Freelancers