When I have mentioned to friends and family about having my own business and all the benefits there are to it. The statement I hear the most is “I would have no clue where to start or how to take advantage of the benefits.”
I will preface this by saying I am not an accountant or lawyer. Always consult with a professional tax accountant and/or lawyer.
Whenever we start something new it's always a good idea to talk to those who are already doing it. When starting a business seek out that person who is finding success doing what you want to do.
One of the biggest signs of the hopes for a successful business failing is not treating it like a business. Too often those seeking to be an entrepreneur don't know the basic differences between a hobby that makes a little bit of income and a business that provides a substantial income.
Whether you join a network marketing company, become an affiliate marketer, blogger, or marketing your own products there are things you will want to put in place and be keeping track of.
- Setting up an LLC, S-corp or C-corp (Check with your accountant to determine which is best for you)
- Set up your bookkeeping system. I love using Quickbooks, but you can also use Quicken or other programs available. A lot of accountants do use Quickbooks and it can be convenient to just share your files with them.
- Set up your office in your home. A specified area you typically use for business. It has to be designated for business to be expensed your tax return. (It will be a depreciation if you own the home or part of your rent if you rent)
- There are so many things you can deduct as a business owner it can be mind boggling. That is why it is crucial to have a good business accountant to consult with. Expenses to track include, but are not limited to:
- Internet expense
- phone expense
- vehicle miles
- equipment (computers, printers, paper, pens, files, cell phone, etc)
- marketing expenses
- professional training
One of the biggest differences between successful entrepreneurs and those that continue to struggle is their mindset and how much they spend on personal and professional development. I love reading and recommending books for entrepreneur mindset and education.
The following are two books that will help when starting out in business and getting things set up correctly.
There may be affiliate links in this blog post which just means if you use them and make a purchase I will make a commission at no extra expense to you.
To learn more about the tax benefits to owning a business in an easily understood book is More Relaxing, Less Taxing by Courtney Epps
Let's be real – taxes are kinda intimidating and a bit scary for many. This book simplifies the complicated.
One of the books that more entrepreneurs talk about as being impactful in their decision to be an entrepreneur is Rich Dad, Poor Dad by Robert Kiyosaki.
This book goes into many reasons why you would want to be an entrepreneur and the mindset differences that come with it. It has had a huge impact on my life and many entrepreneurs that I know. A must-read for all entrepreneurs.
Setting up your business correctly from the very beginning will save you a lot of time and effort down the road.
Having a successful business is empowering and life-changing.
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