When I first started my home business, I thought eventually I would check into setting up my own company. I figured I didn't need to worry about it until thousands of dollars started rolling into my bank account.
A few weeks ago I had a tax consultation that was provided to me as one of my bonuses with my work at home program. Needless to say, I was wrong about thinking I could wait. I have since set up my own LLC (Limited Liability Company). Of course, you should consult an expert to find out what type of entity is best for you.
There are so many advantages of separating your personal activities from your business activities. Even though your income may be very small in the beginning, you are allowed to deduct all your start up costs and ongoing costs from your business against other income you may still be receiving. This will lower your tax liability tremendously. This was also a good move for me as it confirmed that I was serious about my home business and was in it for the long haul. It actually gave me more confidence in myself about running my home business.
Again, whatever you decide to do, make sure you get advice from a professional. There is a lot of paperwork involved but in the long run, it is definitely worth it.
Continue to dream those dreams.
A few weeks ago I had a tax consultation that was provided to me as one of my bonuses with my work at home program. Needless to say, I was wrong about thinking I could wait. I have since set up my own LLC (Limited Liability Company). Of course, you should consult an expert to find out what type of entity is best for you.
There are so many advantages of separating your personal activities from your business activities. Even though your income may be very small in the beginning, you are allowed to deduct all your start up costs and ongoing costs from your business against other income you may still be receiving. This will lower your tax liability tremendously. This was also a good move for me as it confirmed that I was serious about my home business and was in it for the long haul. It actually gave me more confidence in myself about running my home business.
Again, whatever you decide to do, make sure you get advice from a professional. There is a lot of paperwork involved but in the long run, it is definitely worth it.
Continue to dream those dreams.
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