Your business is going to need money and, once you've quit your job, you'll find that your friendly, local bank manager suddenly doesn't know you anymore. Banks like to leand to employees with a steady salary and they hesitate to lend to self-employed people, especially ones who are just starting. It may make sense to get that line of credit which you may need before you quit your job.

The time of year you leave your job has a direct impact on your income taxes in most jurisdictions. Typically, you pay tax on the income earned in the calendar year. Since your employer assumes you will be working the whole year, he deducts a corresponding amount each month from your pay. If you leave in December, everything balances – your employer will have deducted close to what you should be paying. If you leave in June, you'll have earned less money (since you're unlikely to immediately make lots in your new business) so you'll get back a lot of taxes, usually just about when you need some extra cash. You can fine tune this startegy to leave at a time when it is most to your advantage.

If your job includes the use of a car, investigate whether you can take over the lease or buy it from the company. This may be lot less expensive than having to get a new one.

Most jobs include some insurance – make sure you've got reasonable independent coverage before you quit. You probably don't need as much as your employer was offering but you do need a minimum level which will keep you from worrying about this when you have to concentrate on starting your business.

Finally, check out your pension plan status. Many employees are offered various options when they leave and many opt for a big cash pay-out only to find, a few months later, that a huge chunk of it disappears in taxes. Keep the money in the plan or sheltered from taxes some other way. If you want to cash it out, do it a year later when you income is likely to be much lower since you're just starting your business.

FIRST PUBLISHED AT SUITE101.COM