Home

home_business Directory


More
home_business Articles

WRITERS WANTED! (click-me)

Feature Article:

The Home Business Trap
Whatever your reasons are for wanting a home based business, there can be no doubt, it is one of the most rewarding feelings in the world when you start to see the rewards of your efforts paying off. Whether you run an online or offline home...
...Read More

Getting Started In Home Business?
If you're like most people, it's hard to make ends meet with just one income. If you are married, both partners must work, spending countless thousands of dollars on childcare and business clothes. To offset their monetary deficit, many people are...
...Read More

mailbiz.com

Home Business Legalities And Tax Advantages

mailbiz.com       Navigation


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

mailbiz.com

More Reading:


Ideas to Create Own Work At Home Online Business Product

Home Based Businesses Heaven or Health Hazard What You Dont Know

Starting a Home Business

3 Simple Ways to Start Your Home Based Internet Business Right Now

HOW TO FIND YOUR PERFECT HOME BUSINESS STEP BY STEP

 
Focus On Your Target Market To Achieve Home Business Success

Using Blogs to promote your Home Business

How to Make Money on the Internet with a Home Based Business

3 Steps To Home Business Success

Starting A Home Business Step 5

home_business Home

home_business Directory

Additional Reading


Ideas to Create Own Work At Home Online Business Product
The voice you heard by the majority of people in the Net is true, the real true money generating machine is to offer your own product or service where you can keep 100% of the profits. Before you even start creating or introduce your own...
...Read More

"Home Based Businesses - Heaven or Health Hazard? What You Don't Know
My name is Paul Upp. After commuting for 2 to 3 hours per day for the past 13 years I finally realized one of my lifelong dreams…. an opportunity to work from home. I now had more time with my loved ones. The ‘honey do list’ was now getting shorter...
...Read More

Starting a Home Business
In these days, it's becoming increasingly difficult to make ends meet with just one source of income. Thus, more and more people are investigating the possibilities of starting their own extra-income business. Most of these part-time endeavors...
...Read More



 

 

Internet Search for: home_business, business, home

[an error occurred while processing this directive]

 

Copyright    mailbiz.com