Working as an Independant programmerFound the very informative response (below) to this post on Slashdot:
- Step 1. Form an LLC. It's not hard, you can do it yourself for under $100 in most cases
- Step 2. Get an EIN number from the feds. Free and easy
- Step 3. Open a checking account for your new LLC. might require a credit check.
- Step 4. Get a decent accounting package.
- Step 5. Keep track of EVERY business expense. Keep milage logs in your car. Keep receipts. What percentage of your utilities, etc are business related? Track it.
- Step 6. If you think you need the additional coverage get E&O Insurance. It can be pricey, true. On the other hand if you LLC doesn't have a lot of hard assets, why worry?
- Step 7. Get health coverage. We found insurance through a local trade group for $600 a month for my wife and I. Pay it out of the company, it's a write off.
- Step 8. Work your ass off and enjoy the benefits of being able to write-off things you probably would have purchased anyway.This should have been step 6 - get a good tax guy (or girl) to help you figure shit out.Now get creative. Like to go to theme parks? Set up another LLC and create a website dedicated to reviewing them, talking about which ones have what etc. Now you get to write off trips to Six Flags and Cedar point as legitimate business research.Life is far more enjoyable when you do what you want, when you want, for whom you want. All the accounting is a pain in the ass, yes, but not as big of a pain in the ass as working for Bill Lumberg the rest of your life.