The 100% Illusion
One of the biggest traps in self-employment is what I call the 100% Illusion.
A client pays you $5,000, and your brain naturally wants to treat it like you just made $5,000 to spend. But if you are a freelancer, contractor, consultant, or solo business owner, that check is not fully yours.…
For a lot of freelancers, consultants, and LLC owners, success comes with a nasty surprise: self-employment tax.
You finally build a profitable business, hit a strong year, and then realize a huge chunk of your profit is getting eaten up by that extra 15.3% tax. It can feel like a success penalty.
That is why…