Is QBI right for you? - Hustler Daily Thumbs Up - June 1

Hello fellow Encore Hustlers


Is QBI right for you?  What are the side effects ?  Should you ask your physician?

No, QBI is not the latest nutritional supplement but the side effects of QBI could lead to a healthier bank account for Encore Hustlers.  And yes, you should consult as professional, your tax professional.

QBI is short for Qualified Business Income and according to this article in Forbes, it should not be ignored if you are planning on working after retiring.

QBI came into existence as part of the 2018 tax reform bill. It allows businesses to be taxed at a flat rate of 20% and it permits you to deduct reasonable business expenses. Now the great thing about QBI is that it is not just restricted to big businesses, but it can also be be used by sole proprietorships, LLCs and S Corps. Therefore, if you planning to work after retirement being an independent contractor rather than a part time employee, applying QBI might be beneficial. Remember the goal should be, not what you make, but what you get to keep.

Now keep in mind you should not make any tax decisions based in this blog or from reading an article in Forbes. You should consult with your accountant and tax professional to determine if QBI is right for you.

Cheers
Mr. EH

Turning a side hustle into a business - Hustler Daily Thumbs Up - May 28

Hello fellow Encore Hustlers

At some point while pursuing your Encore Hustle there will come a time when you have to make a decision whether you want to continue your hustle on a casual basis or do you want to grow this into a business.

Most encore businesses consist of a single person but that does not preclude it operating as a real business that needs a structure for banking and taxation purposes.

I would recommend reading this article from Business.com on setting up a one-person business. The piece will get you thinking what you need to do to successful launch.

For example:

• Draw up a business plan
• Consider if will this business be a sole proprietorship, an LLC, an S Corp
• What skills do you have to run the business and sort of team do you need to help with legal, accounting, billing, taxes, website support. Determine what administrative chores you can do and what can be outsourced.
• Develop the mindset that this is business and you have to develop time management skills that allow you to focus the limited time you have.
• How to network with other small business owners and how to tap resources like the Federal Small Business Administration.

If this article has been useful to you I would love to have your feedback and comments.

Cheers
Mr EH