Pricing & Money

Most new businesses fail on money, not skill: prices set too low, startup costs underestimated, or a tax bill nobody planned for. This section covers what to charge, what it costs to start, how to fund it and how self-employment taxes work.

How to set your prices

A simple starting point for service work: add up your monthly costs (insurance, vehicle, tools, software, marketing), divide by the hours you can realistically bill, add what you want to pay yourself per hour, then add a profit margin. Compare the result with local competitors before you publish your rates.

Funding a new business

  • Savings and revenue first: many service businesses can start small and grow from their first jobs.
  • SBA microloans: the SBA Microloan program offers loans of up to $50,000 through nonprofit intermediary lenders (SBA fact sheet).
  • Other options: equipment financing, business credit cards and lines of credit; compare total cost, not just the monthly payment.

Taxes when you work for yourself

Self-employed people generally pay self-employment tax (Social Security and Medicare) on their net earnings in addition to income tax, and are usually expected to pay estimated taxes four times a year rather than all at once in April. Set aside part of every payment you receive so the quarterly bills are not a surprise, and confirm the current rules with the IRS or a tax professional.

Guides in this section

Need numbers fast? Try our calculators.

This page is general information, not legal, tax or financial advice. Rules vary by state and change over time; confirm details with the agency named or a licensed professional.

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