If you’re just starting a side hustle and want guidance on the macro issues (tax planning, financial planning/budgeting, timing of launch), CNBC’s Ultimate Guide for 2021 should be a good starting point.
Included in the post are these three videos:
- Key questions you need to answer before starting a side hustle
- This side hustle is so lucrative it can build your wealth by six figures
- Five ways to keep your side hustle from taking over your life.
Valuable reminders from this post:
- “Not to mention a side business can be the best way to get a taste of a future career you might want to ramp up later.”
- “What are you the go-to person for at work? In your personal life?”
- “Once you find an option you like — whether it’s freelance blogging, selling hand-knit hats or helping people declutter their garage — do a trial run.”
- “…listen to podcasts focused on starting a business in a particular niche (you can find them through ListenNotes)”
- “,,,stash 20–35% of all your side hustle money for taxes. That way, you’ll have enough money to pay for the income taxes and the self-employment taxes…”
- “One common mistake for first-time business owners accustomed to having taxes taken out of each paycheck is to forget to pay quarterly taxes and find themselves in a world of pain when they find they owe taxes in April.”
- “Three ways your side gig could mess up your taxes.”
Your tax bill could rise by the hundreds or thousands.
If you don’t keep those receipts, you could be in a world of hurt if the IRS decides they need more documentation.
If you make enough, you might well have to pay estimated taxes.
Here’s hoping you pick up a few tips or ‘oh, yeahhhh’ moments from this post.
Forge ahead, folks.