Hi Group,

We've been watching this thread with interest. We don't want to rain on anyones parade but don't forget the taxes on top of all the other great suggestions (and ideas) that have been discussed. They happen every quarter and include sales tax (if you make retail sales in your state), Federal Excise Tax (Form 720), Social Security/Self Employment Taxes and state & federal income taxes. While we are talking about running a business, don't forget equipemnt and vehicle depreiciation <SP>, writing off part of your house (place of busines), business travel, milege and the list goes on.

If you decided to say the heck with all of that and work-under-the-table be careful, that straight across trade of tied flies for a "new toy" can seem like a good deal until you get caught and end up paying IRS penalties after a tax audit. How do we know this, Al got too big with his under-the-table operation and in 78 learned about tax audits. He also learned more about audits in 81, 82, 84, 87, 94 and 97; once you get on the "list" (whatever that means) you are more prone to an audit (or that's what we think). By the way the 78 and 97 audist are the only ones where he/we had to pay penalties. In 78 he was under-the-table and had to pay back taxes but from that day forward he (and we) have been legit. The 97 audit was for a mistake on end-of-the-year inventory; our point is that once you get on the IRS radar you can expect to be checked. OR maybe other self employed business people also run into the same problem. We would be interested to learn about that from those of you who are self employed on this group.

Some on this group have already discussed insurance so we wont' go there except to say it really gets expensive if you become a totally self employed. Until recently Gretchen worked outside the home to bring home the insurance. In the recent past Al went fishing with 5 other guys in the fly fishing business; all of them were getting their insurance from their wives job.

Please understand we are not trying to tell you to NOT be a commercial tier but understand it is a BUSINESS with responsibilities/expectations just as much as a person who buys, remdodels and sells houses in addition to his/her day job. (by the way, we've been involved in that as well but in today's environment it may not be a very good life-style choice <G>). What ever direction all of you decide to go if you elect to be under-the-table and "just make a few trades," be careful who you brag to about it..... Take care & ...

Tight Lines - Gretchen & Al Beatty
www.btsflyfishing.com