Tim Bouchard started his own graphics and web design company to gain more creative control and build closer relationships with his clients. With that new control, however, came new financial responsibilities - such as, finding new business, traveling to clients, and buying equipment and office supplies.

Fortunately, Tim is on the right track. He has a solid business plan, money set aside for taxes and expenses, and meticulous records. Tim even joined the Buffalo Niagara Partnership, which provides benefits to small business owners in the area.

Tim Bouchard

Tim Bouchard owns his own graphics and web design firm in Buffalo, New York. Working as an independent contractor, Tim has to be responsible for managing his expenses and providing for his financial future.

"If you don't have employer-provided health insurance, one thing you can do for yourself is buy some kind of policy that takes care of you in a catastrophe."

Ron Lieber, The New York Times

"If you don't have a job that gives you benefits, see if there's some organization you can join."

Beth Kobliner, Financial Author

"It's a pay-as-you-go tax system, meaning the government wants their money as you earn your money. If you have not paid enough into the tax system based on your income, you are penalized for that."

"The IRS does not play. They will come after you, and the penalties for not paying are stiff."

Michelle Singletary, The Washington Post

If you are self-employed:

• Save 30% of your income for taxes.
• Save 15% of your income for business expenses and health insurance.