In one week, you work a lot of overtime. In the last job I had, if I worked over 16 hours of overtime, the pay for hours 17 to whatever amounted to less than my base pay after deductions.
You start having to make quarterly payments, which can add up to around an entire month's profit. So essentially every three months you see the bank account reset back one month with the stroke of one check. It's not fun.
Federal income tax FICA Medicare State franchise tax State excise tax County business tax City business tax Property Taxes Personal property taxes Sales tax Licenses Professional taxes Other states taxes Nexus issues Need I say more?
You have to deal with how the sausage is made. Our system is designed to be complicated and complex, but in the way that the average person doesn't have to deal with it or they wouldn't accept it. It's designed for cronyism and kickbacks for special favors and breaks for those that can afford to buy them.
Having to write the check rather than it being taking out of scheduled pay. Generally, working for someone else one never sees the money and often gets a little back. Having to write a five figure check at the end of the year has an impact.
Yes, I get it sucks to make that check out. But is it any difference than making a check out for a new front loader, or a xray machine? It is a cost of doing business. I assume you pass that cost on to me, the customer? Now, the time and effort to keep up with it, that sucks too, but again, if you hire an accountant, do you not factor that into cost of business, like rent? Not trying to be a dickhead here, as I have never run my own business as I have said, and nor do I want to do so. But it seems if you just look at it as a rent check and not "my money going down the tubes", it would be a little easier, psychologically. But I cannot really say for sure.
I am seriously thinking about using the whole "the 16th Amendment is unlawful" tact. Or even the whole "Constitution was illegally set up" tact.
You can price yourself out of business when you think you're growing. It's why so many businesses fail.
There's two brothers, they are both in their late 60's early 70's now, that do dirt work. They have a multi million dollar business. They could stop today and sell their equipment for probably 1.5 million or so. Anyways, they were telling me about how they got started. The older brother went to Vietnam and came back with some cash, younger brother had been running equipment. They buy a bulldozer, backhoe and dump truck, work is going good. They are country farmboys, by the way. They didn't pay taxes until year 4. "We made a lot of damn money before we realized we owed half of it to the damn government".
Yes, but if you never think about it as "your money" but simply money that you are passing through from the consumer to the government, which is all you really are doing, then I would think it would easy the psychological pain of the writing of the check.
I do not understand what this means. I am genuinely interested in this topic, so if you could expound on that, it would be great.
That's the way I look at it and it's why I have no problem telling lowballing clients to [uck fay] right off. You don't realize it until you have to stroke the check, though
Put in 60-70 hours weeks and sleepless night off the bat getting something started and get back to me about not thinking about that as "your money".
If you don't have the cash flow to pay the bills after a quick increase in employees, materials, equipment, taxes, insurance you go broke before you can get paid. I've watched it happen to a few companies. You can think you're making good money, but the overhead grows quicker than the bank account. That's poor planning, but it happens.
So, you increase your pricing to offset your costs and boom someone else can do it cheaper and you're [uck fay]ed
