"The only way to prove that you're a good sport is to lose."Ernie Banks
|
| |
Incorporating Your Home Business
Incorporate Your Own Business Do you have a small business or plan on starting one? Many people who have small businesses keep them sole proprietorships because they think it is too complicated and/or too time consuming to incorporate the business. It is ...
The Top 5 First-Year Mistakes in the Home Business
Even once you've got past the starting-up stage, there are still plenty mistakes to be made to build a home business, and most of them are going to be made in your make-or-break year--the first one. Here are the top five things to avoid. Are you waiting ...
XanGo's Home Business Opportunities
XanGo is the first company to market a health drink, which contains the Mangosteen fruit; this is a tropical fruit that is found mainly in South East Asia. The XanGo juice drink contains 75% of the whole fruit puree of the Mangosteen fruit; the other 25% ...
|
|
|
| |
Even if you work out of your home, most cities and/or counties require you to have a business license and/or permit. Check with your local government municipalities to find out what the requirements are for where you live. Depending on where you live, you should be able to get this information from your local courthouse or townhall.
Zoning may also be an issue. Municipal ordinances can be very restrictive about what types of businesses are allowed in a residential district. This also applies if you plan on placing a sign outside of your home. Again, check with your local government municipalities to find out what the requirements are for where you live.
In addition, depending on how your home business is structured--as a sole proprietorship, partnership or corporation--there may be forms to file with the state. The legal structure affects taxes and the liability of the owner and the home business, so it's important to follow the appropriate procedures. Contact your state's Department of Revenue for filing fees and information.
If you plan to operate your home business under a name other than your own, you will have to register a fictitious name with the county--usually referred to as a DBA filing (Doing Business As). The exceptions to this regulation are corporations and partnerships doing business under the umbrella of the corporate or partnership name.
As a home business owner, you may be required to file estimated tax returns and pay estimated taxes quarterly. If you have employees, you also have to submit taxes withheld from employee paychecks. Here are some of the taxes you may be responsible for:
Employment taxes -- Federal income taxes, Social Security and Medicare, federal unemployment and state income taxes.
Federal self-employment tax--Required by those who work for themselves to cover Social Security and Medicare contributions.
Sales tax--Each state requires a sales tax number for any company involved in selling tangible items. Sales tax is collected, reported and paid to the state either monthly or quarterly.
Unemployment insurance tax -- You are required to pay federal and state unemployment taxes if you have more than one employee on the books for at least 20 weeks in a calendar year, or if they have paid more than $1,500 in gross wages in a calendar quarter.
Again, check with your state's Department of Revenue for more information.
A home business qualifies for all of the same tax deductions regular businesses do. In the eyes of the IRS, the only difference between most home businesses and Fortune 500 Companies is their size, and the fact that home businesses can also deduct many household and living expenses.
Owning a home business will entitle you to deduct thousands of dollars in every day expenses. After all, why pay more in taxes than you have to?
Listed below are just some of the items you are allowed to deduct:
- Your car and car expenses.
- Your mileage.
- Your home computer, printer and other office equipment.
- Your home. If you're not a homeowner, you are allowed to deduct the area where your home office is set-up.
- If you're a homeowner, you may deduct a portion of your property taxes and utilities.
- Your travel expenses.
- Your restaurant meals, entertainent, dinner parties.
- You may pay wages, tax free, to two of your children, if they are involved with the business.
- You may deduct your families health insurance.
NOTE: To qualify for the above tax deductions, you must be actively working your home business.
In closing, since tax laws are continually changing, I highly recommend you consult with your accountant or tax advisor to learn more about applying the aforementioned deductions to your home business.
Dean Phillips is an Internet marketing expert, writer, publisher and entrepreneur. Questions? Comments? Dean can be reached at mailto: dean@lets-make-money.net
Visit his website at: http://www.lets-make-money.net
|
|
|
|
|
|
 Citigroup OKs deal to alter mortgages - Columbus Dispatch
WASHINGTON (AP) -- Democratic lawmakers have reached a deal with Citigroup Inc. on a plan to let bankruptcy judges alter home loans in an effort to prevent foreclosures. They expect other lenders to follow. The lawmakers said yesterday they aim to ...
It's crush time for Browns - Toledo Blade
New York City sports columnists are among the best reads in our business. They take no prisoners, pull no punches, and make headlines, not friends. Anyway, Mike Vaccaro of the New York Post wrote the following on Dec. 29, the day the New York Jets ...
Israel, Hamas Reject UN Truce Vote Amid Gaza Fighting (Update1) - Bloomberg
Jan. 9 (Bloomberg) -- Israel and Hamas rejected a UN call for an immediate cease-fire in the Gaza Strip and Prime Minister Ehud Olmert said the military offensive aimed at stopping rocket fire would continue. Olmert said the firing of rockets from ...
Gators topple Sooners, 24-14 - Valdosta Daily Times
MIAMI (AP) — Tim Tebow gave Florida the jolt it needed to become a national champion. But all his efforts in a sloppy, choppy BCS championship game likely did little to quiet fans of Utah, Southern California and Texas, all of whom already claimed ...
Media ends Bush battle; round two: Palin - The Washington Times
One battle ends, another begins. His job done, President Bush will abandon the major press spotlight in 11 days. Alaska Gov. Sarah Palin's match in the media arena has just begun, however. As Mr. Bush's time in office ebbs, the nation has recognized ...
|
