Financial Tips for the Self Employed

As the tides of business change so does the structure of business culture. There is a growing trend of freelancers, remote employees and independent contractors among the small business and corporate communities. The transition to more flexible work structures creates the need for unique management of one's finances and a strategic plan for future financial goals.

More and more of us have jobs that produce uneven incomes. We will make a lot of money one month, but then very little for the month or two after that. The lessons of how to make those fat times cover the lean times are particularly useful at this time with an uncertain economy weighing on everyone’s mind. Having an uneven or uncertain income, may seem like a tough road for the salaried employee, but it is an everyday way of life for millions of Americans who work as realtors, mortgage brokers, commissioned sales people, freelance consultants, and many more.

— Money Tips for the Self Employed

Life Insurance + Tax Deductions

Did you know that your life insurance premiums may be a deductible business expense? The April 15th tax deadline may have already passed but here's a great tax tip for your next filing cycle. If you filed for an extension, you may still have time to put this smart tip to good use. Learn how you can benefit from paying your life insurance and how to properly set up your policies for tax advantages.

Life insurance premiums are deductible as a business-related expense, and the death benefit is generally tax-free for individual policy owners. Although death benefits for business-related beneficiaries are often tax-free as well, there are certain situations in which the death benefit for corporate-owned life insurance can be taxable. However, employers offering group-term life coverage to employees can deduct the first $50,000 of premiums that they pay, and amounts up to this limit are not counted as income to the employees. Life insurance premiums can also often be deducted for most types of non-qualified plans, such as deferred compensation or executive bonuses. Usually, the premiums are considered compensation for key executives under the rules of these plans. However, in some cases the deduction cannot be taken until the employee constructively receives the benefit.

— Personal Business Tax Tips

3 Types of Insurance Every Small Business Should Have

The list of responsibilities accompanying the role f an entrepreneur can be daunting but that's no reason to leave the list undone. Business owners are at risk for many financial liabilities. It's very important to be sure that your business is properly insured from every aspect. This article recommends 13 types of insurance for small businesses and entrepreneurs. Don't stop after the first three. Keep reading for the full list...

1. General Liability Insurance: Every business, even if home-based, needs to have liability insurance.  The policy provides both defense and damages if you, your employees or your products or services cause or are alleged to have caused Bodily Injury or Property Damage to a third party.

2. Property Insurance:  If you own your building or have business personalproperty, including office equipment, computers, inventory or tools you should consider purchasing a policy that will protect you if you have a fire, vandalism, theft, smoke damage etc.  You may also want to consider business interruption/loss of earning insurance as part of the policy to protect your earnings if the business is unable to operate.

3. Business owner’s policy (BOP): A business owner policy packages all required coverage a business owner would need. Often, BOP’s will include business interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance . Based on your company’s specific needs, you can alter what is included in a BOP. Typically, a business owner will save money by choosing a BOP because the bundle of services often costs less than the total cost of all the individual coverage’s.

— Bruce Lawson