Owning a home-based business is not an opportunity any longer.
It's a MUST.
Not too many years ago, starting a small business or small home business was just a passive thought after developing a successful hobby for a lucky few.
Then came the network marketing groups, which in one way or another, everyone has been pitched, and thousands, including myself, gave it a try.
Now, in a lawsuit happy society, and a waffling economy where many have lost their jobs and homes, having a home business may be the last great hope for survival.
The opportunities are limitless.
You may have to weed out a few unscrupulous ones, but there are some wonderful biz ops out there.
And it's not all negative.
And there is still the great American dream we are all chasing and a surprising number are finding it, thanks much in part, to the internet.
Here is my concern; Although the basics of setting up a home business or any small business is not overly difficult, very few actually take the time to do it right.
Besides, once the basics are in place there opens up to you a much greater world of protecting assets and family, greater tax reduction and staying under the IRS radar and some estate planning that needs to be considered, not to mention corporate credit possibilities.
So, entrepreneurs; treat your home business as if you were the CEO of a major corporation.
Those that do, will set up a wonderful business foundation, will see the fringe benefits and never want to be without it again.
So, what's the purpose? Where does one go to learn how? Is it difficult? In fact, if you haven't already heard, it is more important than ever because the IRS has petitioned congress to quadruple the number of audits they usually perform.
Who do you think is most vulnerable? Judge Leonard Hand once said, "There are two tax systems in this country.
One for the informed and one for the uninformed.
" This statement is very true.
First of all, yes, it can be difficult, but it doesn't have to be.
Lots of seminar companies have made big bucks by selling large sets of tapes, CD's and forms books to help in the process.
Too bulky.
Not my recommendation.
Secondly, why worry about it? The tax courts are full of people who didn't worry about it or tried to interpret the tax code their own way.
There really is NO reason for all that.
And it pays huge dividends with a little effort on your part and some guidance from the right source to keep you on track.
And, it doesn't have to be expensive.
First, the have to's or basics; (And this section will be brief) Think a little like the IRS.
They are just an accounting group.
•A separate place to work-Preferably exclusive use.
•A simple filing system to get you started.
Get upgraded later.
•A separate phone •Separate office supplies and equipment to fit your business.
•A simple accounting system- I would also recommend a tax planner/diary.
It is like a daily planner but includes tax items.
This could make the difference if you are ever audited.
All this is tax deductible and you will be organized.
Secondly, Beyond the basics.
•Set up a simple LLC for business operations.
•Learn dual corporate strategies.
•Learn to hire your children.
•Stay informed.
•Find authoritative support, no fluff.
•Replace the word vacation with business travel.
To name a few.
I'll expand on those next time.
Why go to all this trouble? Asset protection and deductions.
Going from a few to a few hundred.
Finding deductions is one of my favorite activities and you learn how to play the same game as the big boys.
Except you will get more deductions.
One last thing-You're overpaying your taxes every day you procrastinate.
See you next time.