J.K. Lasser's Guide to Self-Employment: Taxes, Tips, and Money-Saving Strategies for Schedule C Filers

                     

Introduction

If you're thinking about starting a business, or have already begun one, you are not alone. There are more than 23 million workers who are already self-employed and file Schedule C to report their income and expenses. The latest statistics show that Schedule C filers collectively had profits of $267.7 billion, with profits on the rise as the economy improves. Some estimates say that one-third of the U.S. workforce is now or soon will be freelancers.

There are several reasons why the ranks of self-employed individuals are expected to grow:

• Entrepreneurial spirit. More and more people are being bitten by the bug to start their own businesses. Some simply want to make a living to support themselves and their families. Others want to change the world through their business activities. Interestingly, the hottest segment of the population for startups now is seniors who retire from their jobs and want a meaningful “second act” in their lives by starting a business; they are called encore entrepreneurs.
• Technology. The Internet, smartphones, and other technological advances have made it easier to get started in business with a minimal investment and to market yourself.
• Changing economy. Economic conditions have forced some people to become self-employed. Unemployment continues to be high, making self-employment the only option. Some recent college graduates in a soft job market are going out on their own. The new mandate under the Affordable Care Act ...