While you are beginning your path to financial freedom, there are a some tidbits of wisdom to consider from those who have been on this journey before you. The first tip is regarding your taxes: Be extremely careful that you do not over-deduct. A good rule of thumb is that deducting expenses which are equal to about sixty percent of your income, or more, might be inviting a tax audit. Another important thing to consider is that if you employ any workers, be careful to pay all applicable taxes. You have to pay unemployment tax, Social Security and Medicare, plus federal and state income tax of course. Another tip regarding your taxes is to be aware of what is known as offer-in-compromise. If you are behind on your personal income taxes, you may be able to get caught up with this program. If you are just starting your business and are not a Corporation, you are well advised to form one since there are just so many tax advantages not to and especially because you cut down your personal liability to almost nothing. Just make sure to speak to a certified professional regarding which kind of corporate entity you should choose, as each one has specific advantages and disadvantages. When choosing where to incorporate, most Home Businesses are advised to incorporate in a State where they do the most business. Out-of-State incorporation often results in extra taxes and fees. But not setting up a corporation is perhaps one of the the biggest mistakes you could make. Remember, a corporation is your shield from personal liability and business debts.
As a broad rule, The IRS looks favorably on home business ventures. The more money that you save via tax deductions, the more you will have to grow your business, eventually paying more to them in taxes.
Another important part of the success of your Home Business is to have a Mission Statement. This is like your business philosophy, ultimate goal, long and short-term plan rolled into one. It will be your guiding light and focus point during gloomy times. One way to look at a Mission Statement is to think of it as the spiritual side of your business. All entities have (or should have) spirits, including your Business. Don't think about it, just do it. A Mission Statement for a real estate development business could be "To provide affordable housing to the maximum number of people", for instance. Businesses that have clear goals and a clear mission Statement have a better chance of success than businesses that do not. Just as Robert Kiyosaki. Remember that when you write out your mission statement, it is not set in stone. You can take it out and edit it from time to time. Have a meeting with the other members of your business and decide which Mission Statement is best for you.
When considering beginning your own business, make sure that you have found a niche that will allow you to serve customers that no one else is serving. Working from home is a big commitment and it can take some time to get started. It is very important to take the time to research what kind of home position is right for you.
When you own your own home business, you have to be self-motivated. Your success depends solely on you so you need to be determined, efficient and a little bit stubborn to succeed.
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