Tag Archives: Self Employed Business

Rules of Self Employment – The Ethics & Morals of It

Abhishek Agarwal asked:

It can be said that there are primarily two rules to be followed for a self employed individual while framing rules. They may be, the rules regarding taxation and those regarding business ethics.

While considering the taxation for a self employed individual, there is not much he can do towards making any major changes in that area. As a person who is self employed you might see a hefty increase in the taxation sum as you would have to shell out for both Social Security as well as Medicare which would otherwise have been reduced by the employer paying half the amount.

But it is possible for you to change the rules of your organization, in relation to the tax bracket you would come under before the deductions as well as after it. Tax payers, submitting returns which are fully legal, the sum can reduce by up to half the tax amount which you would owe. This is due mainly to their individual approach to deductions as well as depreciations and also any legal advice they may give you regarding the same. But if you decide to file your tax returns by yourself, the golden rule is to pay the correct amount and note every deduction that you would make.

Ethics and morals are important and what one might consider perfectly ethical might not find resonance with another. You, as a self employed business man must run the company on a certain code drawn by your own views as well as those followed by other people in the field. It might be required that you draw up a set of rules and ethics which you would follow, with or without the help of the latter, this helps you in your interactions while working.

This relationship may range from those with your customers to even your future employees. Depending on the rules that you frame for your company, you will accordingly attract the right sort of business but also affect the way you conduct your work. By framing the goals and targets as well as the rules you create as a self employed individual, you can build the vision your company will strive to achieve.

There are basically two types of rules which you would have to follow. Those under the compulsion of law and those which you set for yourself based on your sense of righteousness. Irrespective of what you choose to follow or not, you are still under the law to the respective people with the authority whatever you are required to do so. The rules which you create on your own will determine how your contact with your customers and your suppliers will be. It will also create the framework on which you can gauge the actions of others.