Tax Advantages For Home Businesses

By Terance Thomas

I'll guarantee if more people knew about the tens of thousands of dollars you could save annually from turning yourself into a home business using network marketing. People would flock by the thousands into this industry. In my opinion it's essential for anyone who's thinking about investing in a home business, to educate yourself on the home business tax system. This will teach you how to recycle your income annually, even if you don't make any profit. Setting up a home business as a sole proprietor is the best way to get started, until you can afford to incorporate. I'll cover in more details the importance of educating yourself on the tax advantages in network marketing, that will allow you to recycle your expenses annually to use instead of your salary, and also why you should understand the limits of a sole proprietor.

Bookkeepers are not going to educate you on the tax systems for your business. Their job is to get you to pay taxes not save you taxes. Find you a good CPA that will educate you on all the tax advantages of a home business. Do your own bookkeeping its your business anyway, you need to know what goes in and out for yourself. You need to keep track of all your business expenses you can write off when you file your 1099 income tax return. Also Learning how to manage an income statement and balance sheet will help you keep all your business expenses in line. You have to educate yourself on all this, because your business expenses could get rejected by the IRS if your commingling funds and or not properly recording your financials correctly.

If you're earnestly trying to build a home business using the network marketing industry. And you understand the tax system, you can claim all your business expenses even if you didn't make any profit. It all starts with getting your EIN number for the franchise tax board and filing that number with your local state. This way you can set up business accounts for your business to avoid commingling funds. Keeping all your businesses separate from your other business and personal accounts will help you not get your business expenses rejected by the IRS during an audit.

If you've ever wondered how to utilize sole proprietorship in your business, I would encourage you to do your homework. At this stage of the game for you, you won't need to worry about recording minutes or all those things associated with being incorporated. Once your home business has reached an income level of 5K+ monthly then you may want to look into setting up any corporations. But at least when you do you have some experience on how to effectively manage your corporation. I am not a certified CPA. I'm just a concerned business man, who is simply sharing this information to possibly help someone understand a little better.

This doesn't cover all the true tax advantages of building a home business in networking, I just wanted to plant the seed as far as feeding your brain with some information you may find useful. In today's economic struggles people need to arm themselves with as much information on any and all tax advantages. Don't hesitate for one minute to educate yourself by getting around and talking to people who can inform you, or guide you in the right direction. So you can leverage your income no matter what's going on economically. Remember not to commingle funds between other businesses or personal accounts. Setting up a sole proprietorship is a very good way to start any networking business. I hope this topic helps you understand the importance of educating yourself especially when it comes to making money. Good luck with this topic!

I'm very interested in starting a focus mastermind group to help assist new, and experienced networkers. trillionairetsr@live.com

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