Self-employment in Southwest Florida, whether you're a contractor, freelancer, consultant, or gig worker, means you're responsible for your own tax obligations. No employer is withholding taxes from your pay. No employer is sending quarterly deposits on your behalf. It's all on you.
The two most common problems I see from self-employed Sarasota clients: not making estimated tax payments (resulting in a surprise tax bill plus penalties every April), and not setting aside enough for self-employment tax (the 15.3% Social Security and Medicare tax that employees split with their employer but self-employed individuals pay entirely).
Resolution for the Self-Employed
The good news is that self-employed individuals often have more flexibility in IRS negotiations. Your income may fluctuate, your expenses may be variable, and your ability to pay changes with your business cycle. These factors can work in your favor when structuring an installment agreement or calculating an Offer in Compromise.
If you're self-employed in Sarasota and behind on taxes, schedule a free consultation. Getting ahead of this before the IRS escalates saves money and stress.