Running Our Own Business is a Nice Feeling to Have

I started a business in our garage. We were never parking the car in it anyway. I got an idea for a product to make. It only required some basic raw materials and a few seconds to manufacture each item. It is just a small plastic item. I could not stand to outsource it to be made by a foreign manufacturer, and the quantity was too small to involve local plastics manufacturers. It was a hobby at first, then it became a part time then full time income. I hired my wife and use a pay stub maker to keep track of her checks. There is a great incentive in taxes to have an employee. Though it is weird when the employee is your spouse.

My pay is taken from the profits. I have to pay all of my Social Security and Medicare tax, plus I have no unemployment or worker’s compensation insurance unless I decide to pay into it. For my wife, since she is an employee, all of that is deducted and/or partially paid by my business. The business has to pay half of her Social Security and Medicare tax. I cannot make myself an employee under the current structure of the business, but if I incorporate, I can. So many rules outside of just the business of making the product I make.

I use a small machine in the garage to produce thousands of the product about four days per week. Each one gets shipped out in a small envelope. Our label printer runs practically constantly as orders come in from our website. We are not zoned to sell from the house, but I will load up the car and sell at local flea markets and places. My wife has another part time job for some extra income, and we pay our own health insurance through our business. The freedom to make our own decisions is nice.