Should I form an LLC for my business?

An LLC protects your personal assets from business debts and lawsuits, separates your personal and business finances, and can reduce self-employment taxes once you earn $40,000+ from the business. For most small business owners, the annual cost ($50–$500 in state fees) is worth the liability protection. Single-member LLCs are taxed as sole proprietorships by default. An S-corp election becomes tax-advantageous when net profit exceeds roughly $40,000–$50,000 per year.

What credit score do I need for a small business loan?

The minimum personal credit score for a small business loan depends on the loan type: SBA 7(a) requires 640–680+; bank term loans typically require 670+; online business lenders accept 580–620+; and the SBA Microloan program may work with scores in the 575 range through nonprofit intermediaries. Most lenders also require 1–2+ years in business and a minimum monthly revenue ($3,000–$10,000+). Startups under 1 year old have fewer options — personal credit and business plan quality matter most.

How does a self-employed person pay taxes?

Self-employed individuals pay taxes in two parts: self-employment (SE) tax of 15.3% (Social Security + Medicare) on net profit, plus regular income tax. Because no employer withholds taxes, you must pay quarterly estimated taxes — due April 15, June 16, September 15, and January 15. You can deduct half of the SE tax, health insurance premiums, retirement contributions (up to $70,000 in a SEP-IRA or Solo 401k), and all legitimate business expenses from taxable income.

What business insurance do I actually need?

Every business should have general liability insurance ($1M–$2M coverage, ~$500–$1,500/year) to cover third-party bodily injury and property damage. Service businesses and professionals should add professional liability (E&O) insurance. If you have employees, workers' compensation is required in most states. Businesses with physical locations or significant equipment should add commercial property or a Business Owner's Policy (BOP). Cyber liability is increasingly important for any business handling customer data.

Small Business Financial Guide 2026 — Everything You Need to Run Your Business

Running a small business means making financial decisions every day — entity structure, taxes, payroll, insurance, banking, and financing. These guides are built for the people actually running the business. Whether you’re a freelancer filing your first Schedule C or an established LLC owner evaluating S-corp election, use the cluster hubs below to find exactly what you need.

Business Formation: Start Here

Before you sell anything, you need the right structure. The entity you choose affects your taxes, liability, and ability to raise capital.

Small Business Loans

Self-Employed & Freelance Taxes

Business Credit

Business Insurance

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy