Ah the joys of business ownership. No more boss to answer to and no more 6:00 a.m. alarms. Best of all, there's no more traffic to fight-twice a day! Life is good. But where do you go from here?
How do you transition from employee to employer? After 35+ years in business I can assert with complete confidence, the simple answer is, "Don't." Rather than taking on a new moniker why not enjoy your new-found freedom?
I am not saying don't go after your goal of business ownership. No; nothing of the sort. I am merely saying don't start off thinking of doing the one thing that will cause you more headaches than it is worth. Thirty-five years ago this was true; today it is even more so.
For example, it used to be your choice to provide benefits to your employees. Not so today. Now the government has taken that choice away from you. In 2014, when
Obama Care took effect even small business employers who have more than 50 full-time employees must provide costly health insurance. (Obama Care Facts 2014)
Change your status to 'business owner' and hire
sub-contractors or
commission employees instead and you avoid a myriad of headaches. This one shift of your mindset will ensure you won't have legal headaches caused by meeting strict government standards and rules. Things like
Withholding Tax, which is easier said than done-since it requires not just taking money from your employee, but now you have to set up a specific account to put those funds into, report it to the government on their forms and schedules, and then send both to them on their schedule. (IRS 2014) I see the need to hire an accountant or CPA just to get started and keep you in the clear. I would bet you do too.
Here's something you may not have considered either. When you hire an employee, there is a good chance you may have to fire them. However, if you hire a sub-contractor, you merely quit using their services. Hiring is fun for both people involved, but firing is an entirely different matter.
This is just the beginning of the headaches you can avoid simply by remaining a
business owner and not a
boss.Another benefit to you and your sanity is there is no need for plastering your office space with
government mandated posters. You know which ones I'm making reference to. They cost money you don't need to spend and aren't read anyway by the majority of employees. When you were an employee did you read them? Well, maybe you read one once. However, I doubt you read them all or even all the way through. I know I never did. Furthermore, your Dream Board is a much better choice for wall decoration. Don't you agree?
Things like these and other requirements can be the difference between
owning a business, and enjoying the benefits, or accepting the fact that your new 'boss' is the government. Did someone spill something on the floor? Better run and grab that yellow
OSHA spill sign for which you had to shell out $30.00 and
spill kit that cost a minimum of $50.00. Not I! A paper towel will do just fine for me.
So, decide what direction you want to go when you need to hire help before you need to. Then when the time comes you will know exactly what you need to do to maintain your sanity and your freedom. For me, it was an easy choice thirty-five years ago, and I stand by that decision today.
Works CitedIRS. IRS. 2014. http://www.irs.gov/publications/p505/ch01.html (accessed 02 27, 2014).
Obama Care Facts. 2014. http://obamacarefacts.com/obamacare-smallbusiness.php (accessed 02 27, 2014).
