Starting a business with a full time job

[ThomasBez]

Hi,

I am currently wanting to start a business while i have a full time job. My Full time job is a apprenticeship so my income is only £190 a week.

The only outgoings with my business will be £47.99 a month and about £10.00 for a accounting software per month.

I will be receiving enough to cover my outgoings a month every month automatically through my monthly payments off my customers.

The real question is i'm wondering how it will work with tax and stuff while working at my current job.

What exactly will happen?

Thanks
Tom

[Owen]

Hi,

I am currently wanting to start a business while i have a full time job. My Full time job is a apprenticeship so my income is only £190 a week.

The only outgoings with my business will be £47.99 a month and about £10.00 for a accounting software per month.

I will be receiving enough to cover my outgoings a month every month automatically through my monthly payments off my customers.

The real question is i'm wondering how it will work with tax and stuff while working at my current job.

What exactly will happen?

Thanks
Tom

Assuming your from America, if you own a sole proprietor (an unregistered entity) the income from the company would be added to your federal tax return and would be seen as additional revenue and taxed as so. If you're an LLC with an EIN, you would file a separate tax return under the business where you would be taxed as so. However, if the revenue is paid directly to you, like for example, you use your personal PayPal for payments, you don't have to file it as long as it doesn't exceed the maximum amount, not sure what that is I think it's $10,000 or something.

If you make enough money on a per-month basis, you can quit your full-time job and, if you're still nervous, get a part-time job. If you're making about $200+ over all your expenses, you could leave that and become self-employed.

[stevenfies]

ThomasBez, I was in your exact situation for several months until going FT with my own business. The tax situation is easy.

Even with most LLC's income is considered pass-through, so you would just file an addendum to your personal income tax return. Same if you're a sole proprietor. If you use TurboTax or HRBlock software, it couldn't be easier. Many people have employment + side businesses, and the software will walk you through how to record those income/expense items accordingly.