Tuesday, February 27, 2018

Re-balancing life and living purposefully!



Re-balancing life and living purposefully! Soledad Tanner Consulting Founder will share her story. 

“After 26 years of a successful Global Finance Corporate career where, I traveled the world, lived in various countries, received my Masters in International Business, reached and exceeded all my professional goals. Despite all of this success, I realized my health had suffered and needed to re-balance and make changes” 



Monday, February 26, 2018

New CEOs need fortitude, curiosity and savvy to succeed



Written by: Karen Talley


Quite a few CEOs are just stepping in to their positions, or in their first year or so, and while degrees and business experience are valuable, they don’t give the full picture of what’s needed—and not—to run a company.

Dealing with personnel and organizational issues, as well as stakeholders, customers and products are just a few of the hurdles many will face. It’s a time of trial by fire that demands a deft touch, inquisitiveness, patience and fortitude. 


Fortunately, many experienced CEOs are willing to give advice.

“The first, and best piece of advice I can pass on to a new CEO is the one most people already know but can easily lose sight of in the onslaught of day-to-day tasks: It’s all about your people,” said Todd Piett, CEO of Rave Mobile Safety. “The only way you can scale yourself and your organization is by encouraging an atmosphere of respect and trust, where across all levels of the organization people are empowered to make decisions, be comfortable making mistakes and willing to challenge the status quo.”
Consistency counts

Also, be consistent. “A great mentor told me not to try and be someone you aren’t,” Piett said. “While we all have areas to improve upon, don’t put on an artificial mantel just because you took on a new title. It’s not sustainable and others will see the inconsistencies in your behavior, frustrating themselves as they try to guess your intent.”

To be successful, a new CEOs should focus on identifying and building collaboration within their organizations and across other industries that impact their customer base, said Tracy Duberman, CEO of The Leadership Development Group. This will require the following, she said:
  • Envisioning the future. New CEOs must have a clear vision of the direction their organization is heading and what it hopes to achieve.
  • Aligning stakeholders. As organizations bring stakeholders from other sectors into the conversation, new CEOs must allow these stakeholders to build on their original vision and incorporate their inputs and interests to develop a shared solution.
  • Managing boundaries and obstacles. Along the way toward developing collaborative solutions, the partnership will likely be faced with some bumps along the road. To overcome these obstacles, it’s important that new CEOs focus on opportunity, and remind themselves why the partnership was developed in the first place.
  • Act and learn. It is critical to be open to giving and receiving feedback in the interest of evolving that vision to the benefit of all parties. 

As a new CEO, “if you want to become a better leader, the one skill to improve above all others is communication,” said Art Coombs, CEO of KomBea Corp. “The ability to enthusiastically convey an idea, direction and vision to others is critical. And this critical skill is the one skill that truly separates ho-hum management from motivating leadership.”

It is imperative that a new CEO hold strengths in both strategy formulation and execution said Howard Seidel, senior partner at Essex Partners.

A cohesive unit

Development of the executive team into a cohesive unit is essential and CEOs' need to have or develop strong political instincts, Seidel said. “They need to effectively manage their relationships among board members and understand the sometimes unspoken commitments that exist inside an organizational culture. New CEO’s needs to understand how much board and team support they have for certain initiatives.”

In terms of personal traits, “new CEOs are best served combining confidence with some humility and curiosity,” Seidel said. “Projecting confidence is important but that is not mutually exclusive from a new CEO acknowledging that he or she doesn’t know everything, and benefiting from the point of view of older employees in the organization.”

But, “seeking input doesn’t absolve CEOs from understanding that they are ultimately responsible for final decisions,” Seidel said. “New CEOs often can relate to the adage that ‘it’s lonely at the top.’ Similarly, because not all executive decisions will be applauded by everyone in an organization, new CEOs need to have a thick skin, or have the capacity to develop it quickly.”

The unexpected

“You can prepare best by expecting the unexpected,” said Tom Axbey, CEO of CloudHealth. “What you think you know doesn't matter; the question is: have you done your due diligence, and do you have a 100-day plan? The brochure is always different from the resort. Be prepared to listen. To do that, you have to invest from day one in the people.”

Kelley Knutson, president of Netspend, advises new CEOs to use their initial period of time as an outsider to observe, listen and learn how an organization operates and ask a lot of questions beginning with “why” or “what.”

This relates to “sales practices, customer engagement, product development/delivery, operational processes and the competitive landscape,” Knutson said. “Use the things you have two of (eyes and ears) often, and only use your mouth after you’ve objectively understood the situation at hand and can add real value.” 

At the same time, “Ask the right questions, at the right time, to extract real insight and show people you’re listening and care about what they’ve said and what they know about their business,” Knutson said. “This is critically important when leading a group of seasoned, and experienced, leaders who will know the details of the business better than you.”

Openness matters

To do the best job, “be open, engaging, passionate, supportive, humble, inquisitive, and make the journey rewarding for everyone,” Knutson said. “That’s what true leadership is about.”

When Kathleen Savio, CEO of Zurich North America, took the CEO spot, “the first thing I did was focus on my strengths—the contributions I can make to the job. Authentic leadership is where it all begins. For me, I’m inspired by the power of words and use them as a tool to inspire others. My favorite quote is an African proverb: If you want to go fast, go alone. If you want to go far, go together.

“That’s the real purpose of a CEO-–to bring everyone together, united in action, with a common purpose. So, I gathered our leaders together to listen to their insights and to emphasize we are o CEOs can get so occupied with running the business that they don’t spend time directly with their customers. I’m making time with our customers a priority for me. In my first 100 days, I’m on the road meeting with customers and listen to their needs. In the end, it’s all about being there for our customers.”

Stay healthy

“As a new CEO, you will quickly notice that operating in a high-stress environment can take its toll physically, mentally and emotionally,” said Lowinn Kibbey, ‎global head, Johnson & Johnson Human Performance Institute. “This can carry over from the office to all areas of life. While you may be fully equipped to take on a new leadership role, you may not realize just how important it is to stay healthy and resilient, and to continue to develop and improve your character.”

“As you establish yourself in your new role, don’t lose sight of your purpose,” Kibbey said. “Continue to ask yourself: What are you chasing? Why are you chasing it? Who are you becoming as you’re chasing it? Ensuring your decisions align with your character and values can significantly impact your work and quality of life.”

Wednesday, February 21, 2018

10 pasos para construirte tu propia marca personal


Los expertos de Spain Startup-South Summit han elaborado un decálogo para guiar la construcción y difusión de la marca personal de los emprendedores y su influencia en el éxito de su startup.




A partir del contacto con la diversidad de emprendedores nacionales e internacionales que participan en la Startup Competition y se reúnen en cada edición de South Summit, la cita más importante del ecosistema emprendedor del Sur de Europa, los expertos de Spain Startup-South Summit han elaborado un decálogo para guiar la construcción y difusión de la marca personal de los emprendedores y su influencia en el éxito de su startup.

1. Descubrir los propios valores: "¿Quién eres? ¿Qué ofreces? ¿Qué aportación realizas al mercado? ¿Qué te hace diferente? Estas son las primeras cuestiones que debe plantearse un emprendedor para construir su propia marca personal y así definir los valores que lo hacen relevante y diferente del resto. Es importante hacer una lista con los puntos fuertes y débiles: atributos que el propio emprendedor ha de identificar como suyos, sin caer en el error de proyectar en sí mismo valores ideales con los que realmente no se identifica", explican.

"¿Cuáles son los atributos personales más demandados? Creatividad, carisma, eficacia, especialización, adaptabilidad, ética, polivalencia o rapidez. ¿Todos valen para crear la marca personal? Depende de la situación, la tipología del proyecto y, por supuesto, las propias capacidades personales", continúan.

2. Búsqueda de contactos: "De nada sirve ser muy relevante profesionalmente si nadie te conoce. El networking es, por lo tanto, un factor clave para generar visibilidad y desarrollar la marca personal. ¿Cómo generar estos vínculos relacionales? Es fundamental retomar contactos anteriores, organizar eventos propios y asistir a ferias, congresos o seminarios del sector, donde ‘dejarse ver’ y al mismo tiempo conocer a los profesionales más relevantes de ese ámbito. Ser prescriptor de otros que forman parte de tu red de contactos, realizando algunos favores o apoyando a alguien de manera altruista, siempre puede ser una ventaja para fortalecer y crear nuevos vínculos", argumentan.

3. La actitud: "La perseverancia es una cualidad fundamental de cualquier emprendedor para sacar adelante su proyecto. En este caso, juega un papel fundamental la gestión del fracaso y qué consideración tiene en la sociedad. Muchos emprendedores han fracasado antes de triunfar, como Juan Urdiales, cofundador y CEO de Jobandtalent, quien tras fundar su primera empresa junto con dos compañeros de facultad, decidió salirse del proyecto. Tiempo después co-fundó la plataforma de búsqueda de empleo, que ya ha obtenido importantes rondas de financiación por inversores internacionales", añaden.

4. Experto en una determinada materia: "Como emprendedor en un ámbito profesional concreto hay que compartir los conocimientos sobre el sector para posicionarse como un experto y fortalecer su reputación y prestigio profesional. Ofrecer contenido e información de calidad será fundamental para lograr ser un experto. Una forma de demostrar ser un auténtico gurú consiste, en muchas ocasiones, en saber dominar un lenguaje apto para todos los potenciales receptores, ser claro, conciso y concreto, no abusar de tecnicismos y utilizar un vocabulario siempre positivo", siguen.

"Para llegar hasta ahí, siempre suele haber un largo camino. Allan Grant, speaker del próximo South Summit, lleva siendo un apasionado del desarrollo de software desde que diseñó con siete años su primer juego. Entre los 13 y 18, dedicó 10.000 horas a codificar juegos online con miles de jugadores. Ya en la universidad, fundó una empresa de desarrollo web y no paró hasta convertirla en una compañía rentable con más de 50 empleados. Ahora Allan está volcado en Hired, un mercado en Internet en el que las empresas más importantes pueden competir por hacerse con el mejor talento técnico (ingenieros de software, diseñadores, científicos de datos y gestores de productos)", comentan.

5. Mezcla de canales: "¿Dónde ofrecer este contenido? ¿Cómo crear valor? Para que un emprendedor forje su marca personal hay que ser activo en cualquier canal. Por tanto, la mezcla de offline y online es la sinergia perfecta", anotan.

"Internet es una herramienta accesible, útil y que no exige muchos recursos a nivel económico. Pero sí esfuerzo, constancia y una importante dedicación. Además, no todo vale; hay que adaptar cada mensaje. Cada espacio tiene sus propias características: vocabulario, tono o público objetivo. Y prestar especial cuidado al contenido que colgamos online; cualquier mensaje o comentario inapropiado se paga caro en el mundo digital. Otro de los errores de muchos emprendedores es considerar Internet como un mero escaparate y olvidar la interacción con el resto de usuarios. La Red es sinónimo de conversación y a golpe de clic podemos acceder a consumidores, inversores, posibles socios estratégicos u otros emprendedores", indican.

"El canal offline es también una de las mejores formas de construir la imagen personal. El emprendedor no puedo olvidar ‘salir a la calle’ y establecer relaciones cara a cara o participar en los medios de comunicación como un experto en su sector", concluyen.

6. Dejar huella: "Que el fundador de una empresa sea reconocido y tenga un fuerte impacto en la sociedad, hasta llegar a convertirse incluso en un icono, siempre es una importante ventaja. ¿Qué requisitos son necesarios para lograr dejar esa huella? Por un lado, ser fiel a los propios valores y, al mismo tiempo, tener claros la misión, visión y objetivos a perseguir. En definitiva, mantener un rumbo firme y defender lo que se cree. Este doble perfil es lo que permitió, en gran parte, el éxito de Steve Jobs", comentan.

7. Coherencia, autenticidad, naturalidad y transparencia: "Son principios básicos para la creación de una marca personal sólida y sincera. Para contar con una buena reputación es imprescindible saber transmitir credibilidad, coherencia, seguridad y construir un discurso transparente, que genere confianza. La naturalidad y adaptación del mensaje a nuestras formas y maneras son también premisas fundamentales", dicen. 

8. Construcción del storytelling personal: "¿Qué historia hay detrás de un emprendedor? ¿Cuál es su trayectoria profesional? ¿Cómo darla a conocer? ¿Cómo crear un discurso verosímil y que capte la atención? El personal branding no es improvisación, es estrategia, por lo que es aconsejable el asesoramiento profesional para descubrir la historia, desarrollarla y comunicarla. “Se trata de construir una historia auténtica, con valor, diferente y que genere interés”, asegura Álex Barrera experto de Press 42 en storytelling y. Por lo tanto, el storytelling personal es una obligación para los emprendedores si quieren despertar la atención, seguridad y notoriedad de su proyecto, sobre todo en las fases iniciales", plantean.

9. Tiempo y recursos: "El personal branding se crea y moldea poco a poco y ha de ser afrontado como una inversión a largo plazo y que requiere paciencia. Para evitar malgastar tiempo y dinero, hay que conocerse bien a sí mismo, no vender ‘humo’ y saber identificar qué tiene realmente cabida en la creación del storytelling personal. La medición del impacto generado permitirá ver cómo evoluciona la marca personal, la aceptación que tiene y plantear posibles mejoras", ponen sobre la mesa.

10. La marca personal sobrevive a la profesional: "Que una startup deje de existir significa el fin de una marca profesional, pero la personal sobrevive, porque va unida al emprendedor más que al proyecto. Invertir en personal branding es hacerlo también en visibilidad para futuros proyectos", concluyen.

Wednesday, February 14, 2018

The top 5 finantial metrics that can create a competitive advantage



Source: https://goo.gl/X5uocn

Regardless of the size of a company, it is empirical that every organization knows and fully understands their current standing, their goals and aspirations, and how to attain these set goals. Financial metrics have traditionally been an indicator of a company´s overall performance. Each finance department is expected to establish and track specific financial goals in an interdepartmental and integrated manner to enable the organization to function effectively.

These financial goals and metrics, often patterned after industry standards, acts as important indicators of a company´s success as it allows organizations to link strategic goals to direct performance and it connects relevant information to important decisions.

Here are the top 5 financial goals and metrics (in no particular order) that can create a competitive advantage for an organization:

Cash Flow

Cash flow represents the cash on hand after deducting investment and working capital increases from the company´s operating cash flow. It is usually used as a measure of a company´s financial health. It is an indicator of how well its resources are being managed and how they are utilized to generate more cash for other investments. This metric is important for companies when forecasting a significant capital expenditure or when following through a specific project.

Asset and Risk management

This metric is all about optimal management of cash, receivables, inventory (aka current assets) as well as management of payables and accruals and the efficient management of its working capital and cash conversion cycle. This is an important metric when a company is evaluating its performance against benchmarked companies.

At the same time, it is also important for a company to manage uncertainties through proper and timely identification, measurement, and control of current risks in terms of corporate governance and regulatory compliance. This metric is important because companies must undertake serious assessments when anticipating greater uncertainty in the business. A process must be in place to assess likelihood of occurrence, its financial impact, and ways of mitigating the cause and effects of the risks identified.

Growth Indices

This metric enables companies to assess and evaluate market share growth, sales growth, and acceptable trade off growth in terms of reductions in cash flows, profit margin, and ROI.

Growth oftentimes depletes cash and reserve borrowing funds such that rigorous asset management is required in order to manage cash flow and to limit borrowing. This metric ensures that companies set growth index goals when growth rates are not as forecasted in comparison to benchmarked companies in the industry.
Profitability ratios

This metric is used to measure operational efficiency. It indicates areas for improvement and the areas that need corrective measures. This metric ensures that companies set profitability ratio goals when they need to operate more effectively and when they want to pursue other improvements within the business.

Tax Optimization

This metric ensures that there is management of tax liability undertaken as an organization conducts business and as an organization tries to reduce the expected taxes. For any company, new acquisitions or projects must be weighed against tax implications and net after tax contribution to the company´s value. A company´s performance must be measured on an after tax basis as much as possible.

Having all these financial metrics fosters a culture of a balanced scorecard as a means to evaluate the performance of the company. It is undeniably an open secret that several strategies fail on execution which is why these metrics will assist companies in implementing and monitoring their strategies by having specific, measurable, realistic, and industry related goals.

Business Visibility

Accurate and real time visibility into the business through an automated financial system is very important in order to track the key performance indicators of a business. It has become very important that every organization has an ability to pull data across the organization and compile it in an intelligent and automated way in order to scale operations quickly and effectively.

Modern technology has now allowed companies to have readily accessible data that can afford them greater predictability and better forecasting of revenues, expenses, cash flow, etc. By benchmarking these metrics, companies can have early warning signals in order to correct certain areas immediately before it affects the financial health of a company. Just as important is the ability to manage non-financial metrics.
e software.

Thursday, February 8, 2018

JN Tiger Construction´s testimonial

"Thanks for enlighten JN Tiger Construction Inc with your knowledge and expertise. You have helped me move forward with your advice and you have thought me many things that make me work better and be more efficient ... Thanks Soledad Tanner Consulting!"
 Javier Orozco
 Founder of JN Tiger Construction Inc.

Tuesday, February 6, 2018

How to escape feelings of inadequacy when it comes to your business

Source:  www.due.com 

Writenn by: Choncé Maddoux




It happens to even the best entrepreneurs. You get a killer business idea or turn a passion into profit and start working for yourself.

You find out that running a business may or may not turn out to be what you thought it would be but it is rewarding after you put in lots of effort and countless hours of work.

Yet and still, it’s easy to feel discouraged and inadequate when you don’t meet certain business goals or if it takes you longer than you anticipated to accomplish something.

Feeling “meh” about your business sometimes is normal seeing as it’s common to run low on steam or compare yourself to someone who seems to be doing better than you but it’s never good to maintain feelings of inadequacy if you truly want to be successful. You have to work to get rid of the downer of these thoughts.

To escape these negative feelings and get back on track, keep these three actionable tips in mind:
Never Compare Your Beginning to Someone Else’s Middle or End Results

One of the main things that you can you feel inadequate about when it comes to your business is when you compare yourself to other people in your niche. There is probably always going to be someone who seems to be doing better than you or they seem like they are working harder than you are.

While you can use the success of others to motivate you and inspire you and get some tips from them to help you — you should never take their actions to heart. You are not them and they are not you.

Comparing is pretty much a waste of time and effort because everyone starts their entrepreneurial journey at different times and has their own unique situations to deal with. If you just started your business a year ago and you’re comparing your success to someone who has been running their business for 4 years, that’s pretty unfair to yourself and a good way to bring on discouragement — and you don’t need that.

The person who has been running their business for several years longer than you has time to make mistakes and learn through trial and error while you may not have had that much time. Remember that you are on your own path and try not to let other people’s timeline affect you.
Get a Coach

Running a business can be lonely at times and you may find that you need lots of support and encouragement for the ups and downs. If you are constantly feeling stuck, you might want to consider hiring a coach or mentor to help you break through and get clearer on your mission or vision.

Having a coach is also great for accountability. For example, if you’ve been meaning to publish a book for years now, your coach or mentor can hold you accountable for that goal so you can actually start making progress on it.

A coach or mentor can also help you identify new strategies to improve your business and personal success, especially if they have already reached the level of success that you wish to obtain.
Focus on One Thing At a Time

If you are feeling like you never get a chance to finish any of your big projects or put enough attention to detail into them, try to slow down and focus on one thing at a time.

It has been studied over and over — Multi-tasking hardly ever works because it pulls your attention in a hundred different directions and can actually slow you down.

If you have big moves to make with your business, map everything out on a calendar and business plan, and focus on each item one-by-one. Once you’ve completed a project and you are pleased with the results, then you can move to the next thing. Remember that you do not have to be 100 percent pleased. It will help move you along more quickly to find the “good enough” ground. Remember, good — and good enough — not perfect. Perfectionists tend to move slower and often discourage themselves into a slump.

This may seem to be a slower way to do things, but it is more effective and will allow you to feel more accomplished in the long run.
Summary: Acknowledge Your Progress and Focus

Feelings of inadequacy often stem from insecurities that may or may not even actually exist. Your first step to overcoming those negative feelings are to take a step back and acknowledge your progress made thus far.

Recognize and celebrate your wins both large and small, then move forward by choosing one or more of the three action-based tips mentioned above.

Remember to stay focused and shy away from letting what others are doing influence how you measure the worth of your business. Focus on your own path.

4 Things You Should Do to Prepare Your Small Business for 2018

Are you a business owner and want to improve your company this year? Some of the key questions you should reflect on: Are your books organized? Do you examine your financial reports on a monthly basis? Are you prepared for growth? What products or services deliver the biggest return on investment? 

Would you like to learn more about our FINANCIAL MANAGEMENT SOLUTIONS? Please contact us at 832-998-2136 for a complimentary consultation.

Soledad Tanner, MIB


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Source: www.due.com


With the end of yet another great year it's time to prep ourselves for the next.






With the end of yet another great year it’s time to prep ourselves for the next. Small business owners take this time to evaluate their accomplishments and set the course for what’s ahead.



Every small business has a slightly different end of year checklist. That said there is definitely a common thread that runs throughout. Some of these items may seem obvious but you’d be surprised how many are overlooked. While small they’re still very important and they can make all the difference for accomplishing your goals in 2018.

Here are four small things you can do to prepare your small business for the new year.

1. Organize your books

First and foremost you need to get the logistics out of the way. At the top of your list should be your books. Hopefully you’ve been setting enough money aside each month to pay your taxes. If not, then you’re in trouble. Either way you need to get everything prepared for the good old Uncle Sam.

Make sure you take the time to carefully examine all your financial reports and really take this time to evaluate your progress. If you had trouble getting your books in order then you may make it a goal of yours to keep better track of your finances next year.

One pro tip I can give you is that you may want to consider using an online payments solution with invoicing and expense management functionality. That way you can automate your bookkeeping and focus more on growing your business.

2. Reflect with your team

The end of the year should really be a time for reflection. If you’re like most small business owners the majority of your day is spent in your own head grinding on making your business thrive. Often times this results in the owners missing out on valuable feedback and time spent with their staff.

As things wind down for the holidays make sure you take the time to reflect with your team. Setup one on one chats as well as a group discussion to gather feedback. Make sure every single person has a chance to provide input. This will make for a stronger more engaged team in the long run.

3. Prepare for growth

Growth is typically on the top of the list for every small business owner. However many of them don’t actually take the necessary steps to make that happen. As the year comes to an end this is the time to really set the stage for growth.

Think about where your business is lacking and what efforts produce the biggest return on investment. This also may be the time when you decide to cut a few employees loose. It’s never easy but if you want to be able to move the company forward you need to do what’s necessary.

4. Upgrade your technology

For better or for worse we’re living in the time of constant innovation. Good news is there’s a ton of new technology every single year that can benefit your business. Bad news is that it means you have to replace your old systems with new ones.

If you have the time you should run a quick check to see if you’re up to speed on the latest technologies available. Here are a few tools you may want to checkout before going into the new year:
Slack provides seamless and affordable team communication. I highly recommend this to any startup or team.
Dropbox is great for file-sharing and recently released Dropbox papers which provides a Google Drive style collaboration tool.
Buffer is great for social media marketing as it lets you schedule posts from your social accounts.
Calendar is a fantastic tool for scheduling and managing your time.
Final Thoughts

Out with the old in with the new. With 2018 here it’s time to check those last few items off the list so you can start the new year with a bang. If your a small business owner make sure to do these four small things before wrapping up the year!

(By Renzo Costarella)

Sunday, February 4, 2018

Small Business Taxes: The Virtual Workshop


Welcome to Small Business Taxes: The Virtual Workshop.

We designed this workshop to help you, a new business owner, understand and meet your federal tax obligations. This workshop is constructed so that the first three lessons... What You Need to Know about Federal Taxes and Your New Business, What You Need to Know about Schedule C and Other Small Business Taxes and Tax Forms; And How to File and Pay Your Taxes Electronicallyare for everyone, no matter what kind of business you have or whether you have employees.

Then, in What You Need to Know When You Run Your Business Out of Your Home and How to Set Up a Retirement Plan for You and Your Employees, we'll discuss some information that may be relevant to you now-- or that may become relevant once your business has become established. The final four lessons... What You Need to Know about Federal Taxes when Hiring Employees or Independent Contractors, How to Manage Payroll so You Withhold the Correct Amount from Employees, How to Make Tax Deposits and File a Return to Report Your Payroll Taxes. And Hiring People Who Live in the U.S. but Who Aren't U.S. Citizens, ....are for those employers who already have, or who are thinking about hiring, employees. Because this is a virtual workshop, you can choose the lessons that apply to you.

Using the navigation buttons on the screen, you can go directly to the information you need. You also can pause and bookmark lessons so you can review information at a later time. Best of all, you can return to lessons you didn't need when you started your business but might need now; for example, if you decide to start a retirement plan or your business has grown enough that you want to hire employees-- all the information will be here when you need it. Throughout these lessons, you'll hear from small business owners like yourself, and we hope that by watching these owners learnhow to meet their federal tax obligations, you'll learn how to meet yours as well. Best wishes on your new business.


Self-Employed Individuals Tax Center



Source: https://goo.gl/aHMAbu

Who is Self-Employed?

Generally, you are self-employed if any of the following apply to you.

What are My Self-Employed Tax Obligations?

As a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly.
Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. In general, anytime the wording "self-employment tax" is used, it only refers to Social Security and Medicare taxes and not any other tax (like income tax).
Before you can determine if you are subject to self-employment tax and income tax, you must figure your net profit or net loss from your business. You do this by subtracting your business expenses from your business income. If your expenses are less than your income, the difference is net profit and becomes part of your income on page 1 of Form 1040. If your expenses are more than your income, the difference is a net loss. You usually can deduct your loss from gross income on page 1 of Form 1040. But in some situations your loss is limited. See Pub. 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) for more information.
You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions (PDF).

How Do I Make My Quarterly Payments?

Estimated tax is the method used to pay Social Security and Medicare taxes and income tax, because you do not have an employer withholding these taxes for you. Form 1040-ES, Estimated Tax for Individuals (PDF), is used to figure these taxes. Form 1040-ES contains a worksheet that is similar to Form 1040. You will need your prior year’s annual tax return in order to fill out Form 1040-ES.
Use the worksheet found in Form 1040-ES, Estimated Tax for Individuals to find out if you are required to file quarterly estimated tax.
Form 1040-ES also contains blank vouchers you can use when you mail your estimated tax payments or you may make your payments using the Electronic Federal Tax Payment System (EFTPS). If this is your first year being self-employed, you will need to estimate the amount of income you expect to earn for the year. If you estimated your earnings too high, simply complete another Form 1040-ES worksheet to refigure your estimated tax for the next quarter. If you estimated your earnings too low, again complete another Form 1040-ES worksheet to recalculate your estimated taxes for the next quarter.
See the Estimated Taxes page for more information. The Self-Employment Tax page has more information on Social Security and Medicare taxes.

How Do I File My Annual Return?

To file your annual tax return, you will need to use Schedule C (PDF) or Schedule C-EZ (PDF) to report your income or loss from a business you operated or a profession you practiced as a sole proprietor. Schedule C Instructions (PDF) may be helpful in filling out this form.
Small businesses and statutory employees with expenses of $5,000 or less may be able to file Schedule C-EZ instead of Schedule C. To find out if you can use Schedule C-EZ, see the instructions in the Schedule C-EZ form.
In order to report your Social Security and Medicare taxes, you must file Schedule SE (Form 1040), Self-Employment Tax (PDF). Use the income or loss calculated on Schedule C or Schedule C-EZ to calculate the amount of Social Security and Medicare taxes you should have paid during the year. The Instructions (PDF) for Schedule SE may be helpful in filing out the form.

Am I Required to File an Information Return?

If you made or received a payment as a small business or self-employed (individual), you are most likely required to file an information return to the IRS.

Business Structures

When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. Visit the Business Structures page to learn more about each type of entity and what forms to file.

Home Office Deduction

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The home office deduction is available for homeowners and renters, and applies to all types of homes.

Married Couples Business - What is a Qualified Joint Venture?

Married Couples Business
The employment tax requirements for family employees may vary from those that apply to other employees. On this page we point out some issues to consider when operating a married couples business.
Election for Married Couples Unincorporated Businesses
For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a "qualified joint venture," whose only members are a married couples filing a joint return, can elect not to be treated as a partnership for Federal tax purposes.

Considering a Tax Professional

Online Learning Tools

The Small Business Taxes: The Virtual Workshop is composed of nine interactive lessons designed to help new small business owners learn their tax rights and responsibilities. The IRS Video Portal contains video and audio presentations on topics of interest to small businesses, individuals and tax professionals.