Part 3/10:
Before delving into tax strategies, the presenter takes a moment to promote Ink File, an affordable and reliable online incorporation service. In just about 15 minutes, entrepreneurs can form an LLC and potentially receive a year's worth of registered agent services for free — a significant value for new business owners.
Why Self-Employment Taxes Are a Burden
For self-employed individuals, the full burden of Social Security and Medicare taxes falls on their shoulders, unlike employees where the employer shares the responsibility. Specifically, self-employed people pay both the employee’s and employer’s portions of these taxes — totaling approximately 15.3% of taxable income.