A Simple Plan To Build A Dream Job At Home
Starting a home business can be a ball. Striking out on your own relieves you of the nine-to-five grind, long commutes to work and working for a person you’d rather not. However, as an entrepreneur you’ll also need to discipline yourself to work long hours, maybe even on weekends. You’ll need to know various laws – local, state and federal – that govern how you run that business. Finally, you’ll need a plan to follow that will guide you to success. Here is a simple plan to get you started in order to build that dream at home.
Write A Business Plan
A business plan will serve as a guide to create a successful small business at home. This plan will help determine whether your idea is good or poor. The Small Business Administration has a program that will assess your business plan and give advice on how to lay out a business strategy. Your local banker can also provide advice on how to manage money and apply for business loans.
A Sole Proprietorship Or Employees
If you can hire yourself out as an independent contractor in order to make money, you can start as a business of one. For example, if you are an accountant, you can sell your skills to businesses to make money. On the other hand, if you want to remodel homes, you’ll need to hire employees to handle the demands of a big job. Know this before you start because laws governing a business with employes are more complex and expensive.
As a small business owner, the IRS will expect you to pay quarterly estimated taxes. That means that every four months, you will need to send the government a check for taxes based upon how much money you expect to earn. Failing to do so can result in penalties.
Establish A Retirement Plan
It will be your responsibility to create a savings plan that will take care of you after you retire. Various retirement plans exist to help entrepreneurs save for the golden years. Some are good, some are poor and others are outright scams to steal your money. You’ll need to talk to retired business owners to find the best plan. Your banker or investment advisor can guide you to suitable retirement plans.
Establish Your Physical Business
Can you work from home? If so, you can make use of the home business option where you use part of your home as an office. A home business allows you to deduct the cost of equipment, utilities, mortgage payments and dozens of other expenses.
Install Separate Phone And Internet Lines
Both phone lines and an Internet connection established for a business at home can be deducted as a business expense.
You will need to pay for health insurance, home insurance and business insurance. This will protect you in case the unexpected should occur.
Buy A Business Vehicle
Deducting miles traveled for business in a vehicle is a great way to create a large business deduction. The IRS allows you to deduct a set amount for every mile traveled. This is best done with a vehicle designated strictly for business.