Social Security is less than an ideal situation for most small business owners. That is because if you are self employed, then you will still need to file social security for you and your employee (you also being an employee.) That means that you have to file at twice the amount. This means that you would be filing at 15.3 percent instead of half of that of all of your net profits.
Social Security is not something that you can mess with either as it is highly tracked throughout the system. Yet, there is some good news for those filing their personal income taxes. You can deduct half of your contribution of your Social Security investment onto your Form 1040.
Be sure to talk to your tax professional about this scenario. Most small business professionals don’t realize this stepping into their business.
