Having your own small business can be a rewarding experience. There are many aspects that can be difficult to accomplish on your own though. The most important issue that needs to be watched and completed correctly is taxes. Ten free tax tips offered by the Score business website can be helpful to any business owner.
Deductions are the most important thing to remember with your own business. Do not overlook those deductions that may not be the most obvious. Even trips that combine business and pleasure can be used as a write off, just make sure more than half is business related. If your business has employees, you need to worry about getting the correct taxes out of paychecks. Social security, medicare, state and federal taxes all must be withheld. Also unemployment taxes and employer matching are also important.
Keep all of the tax documents for at least seven years. Good record keeping could save money in the end. Business tax returns and licenses should be kept indefinitely though.
Make sure that all of the business tax deadlines are met. April 15 may be the personal deadline but it is not the same for business. All business owners know that estimated taxes are due four times a year. And they remember that sales taxes are due either monthly or quarterly or their bookkeeper keeps track of the dates for them. Employee taxes are even more difficult, they are due either weekly, monthly, or quarterly. This will decide manly on the size of the business. All of these different rules can affect the business greatly. Keep on top of your taxes to avoid tax penalties and interest charges from the IRS.
Finding new ways to save money is never easy, but working from home can make it easier to build up that savings account. It is necessary to spend money to have even a slight chance of making money and this is even true when it comes to getting a regular job. A regular job will cost much more than working from home through a few basic measures.
Reduced Transportation Cost:
Going to a regular job requires driving, taking a bus, riding a train or taking a subway. Regardless of the mode of transportation, most jobs away from home will require spending some money to reach the office space.
Working from home has a key benefit in saving cash via transportation. It is not necessary to spend a single penny getting from one room to the other. That benefit of reduced transportation can add up quickly by the end of the year.
Depending on the distance to the office and the mode of transportation, it can save as much as $100 or more per month in transportation costs. Even jobs close by that take 5 minutes to drive to, will cost you roughly $30 or more per month.
Lower Food Costs:
Going to a regular job opens a number of doors to the temptation to spend. While it is possible to pack a lunch and avoid coffee, it is always tempting to buy lunch at least once or twice a week. In some cases, running out the door might require buying lunch rather than packing lunch.
Staying at home has the benefit of saving on the cost of buying food outside. Not only it is less costly to make a meal and a pot of coffee at home, it is also much healthier than most restaurants and cafeterias available around a regular job.
Lower Clothing Costs:
Working at home offers the benefit of wearing comfortable clothes and avoiding expensive suits or work attire. Since the job will not entail face to face conversations with clients, going out to an office or making an impression with the outfit, the expense of clothing becomes much less.
The uniform of choice for working in the home is anything that feels comfortable and does not reduce motivation. That can range from casual outfits to semi-nice clothes, based on personal preferences.
It is not necessary to hide away from the world, but the freedom of wardrobe choice while working at home is a key reduction in necessary expenditures.
As an individual who works from home, tax benefits are available. Self-employed individuals can cut taxes by making use of deductions. The home office space, gas used while working, any equipment necessary to perform job tasks, office supplies and even utilities will all provide a discount.
It is not possible to claim tax deductions on your return when working at a regular w2 job that relate to home expenses such as mortgage interest. Only those who work at home can add the expense of personal computers and a percentage of utilities to the tax deductions.
Making More Money:
Working from home wastes much less time. Even a half hour commute to work will result in five hours or more per week in just transportation. Working from home clears up those five hours so that more time is spent making money.
Working from home has clear benefits when it comes to saving more cash. Instead of wasting a few hundred dollars in transportation, clothing and other expenses necessary to work in a regular job, it is possible to save that cash by working at home. Saving money at home starts with determining the cost of going to a regular job.
Jeff is an Internet marketing consultant and content distributor for NY divorce lawyers, and He is also a passionate blogger who often writes about money saving, sharing his knowledge and experience in that field.
While the old American dream was once to land a steady job with good benefits and an early retirement, the updated version often entails becoming an entrepreneur and being your own boss. There are many challenges in steering your own ship, and yep many rewards as well. One advantage to working for yourself is that you know that you’ve got at least one person on board that really genuinely cares. As your own boss you can also guarantee that your opinions will be heard. But before making that big jump, you should really make sure you know what you’re getting into.
Here are some often overlooked changes you will experience…
If you once were able to file a 1040EZ those days will soon be ones of the past. Taxes for your business will be involved, to say the least. And your personal taxes will doubtless be affected as well. Then you’ve got the cross-over items and the difficulty of trying to decide what can legitimately be itemized and for which. As an entrepreneur you will want to keep an eye on mileage costs and keep receipts for any business-related transactions.
Also be sure to check into any specific licensing or certifications you may require for your business and keep up to date on any registration renewals, if any.
A home office can obviously cut down on fuel costs and time spent going to and fro. Working from home can also keep you more connected with loved ones and may even get you tax breaks, if set up correctly. Though if you business is customer or client-based you may be required to have specific permits for such and to also carry extra liability insurance, should anything happen to someone on your property.
Another thing to consider is if you feel you can truly be productive while working at home. The Internet is distracting enough, what happens when you’re groggy all day and the bed is just a few feet away? Do you actually have enough space to specifically dedicate to an office? Will you and your family be able to agree on some kind of ground rules for specific hours of operation? These things and more should be considered before taking the plunge.
As mentioned, if you have a home office you’ll most likely need extra insurance but don’t forget medical insurance and disability as well. An old 9 to 5 might have taken care of that for you but now that you’re the boss you do have to have a backup plan, should anything go wrong.
These are just a few of the I’s to dot and T’s to cross, there’s so much more. However, it’s a pretty terrific time to go into business for yourself – provided you think ahead, plan accordingly, and prepare yourself for the worst so that the worst never comes to call.
Written by Erin Nolan. Hurt yourself at someone’s business? Make a claim: www.accidentclaims.org
For many people doing taxes may seem like an overcomplicated burden which they may not be ready to face. The reality is that there is tax help available with turbo tax.
By using the services of professional tax preparers your refund may be maximized as well as saving the hassle of paperwork. There are many different services out there offering tax help but some charge enormous fees and may be less than professional in their business dealings. The best thing to do is use a service which is established with a good reputation of customer service.
Depending on how you earn your income changes many things when it comes time to file taxes. Turbo tax has software keyed for all different types of people. For example if you work for wages and do not have any investments you may need to file one kind of form while a small business owner will need something different. To ensure you get all the refund you deserve and to avoid any fees or penalties doing the proper paperwork is the first step. While doing this yourself is possible professionals that deal with these matters on a daily basis have the advantage of here.
So do not despair when it is time to do your taxes. Asking for help in this matter is advisable and there is tax help out there to help you. One of the many places worth looking into is turbo tax to get your refund done correctly and on time.
The guidelines that are in place from the IRS enable workers and business owners to claim for mileage as a business deduction if you are using your vehicle for business purposes. Some people who are employed are able to deduct business mileage if it is not reimbursed by employers or is only partially reimbursed at a rate that is lower than the official business mileage rate.
Owners of small businesses also often use their vehicles for business related purposes and in this event they too can claim their mileage as a business expense. However, it is important that no matter why or how you are claiming for your business mileage you are able to differentiate between business and personal use mileage and that you do not end up claiming for mileage clocked up when using your vehicle for personal use, as this could be classed as a fraudulent claim. On the other hand you don’t want to miss out and end up claiming for less mileage than you have actually done for business. For these reasons it is vital to ensure that you keep track of your business mileage.
The easiest way to keep track of your business mileage is to use your odometer, which will enable you to see how many miles you do from the start of your journey until the end, each time you go out for business purposes in your vehicle. You simply need to record the number of miles that you do either on a spreadsheet or even in a notebook that you use specifically for logging mileage. It is also advisable to make a note on your spreadsheet or notebook about why you had to make this trip, as this is information that the IRS may ask for. Write or log down where you traveled from and where you traveled to, detailing any detours that you may have made en-route for business purposes.
Of course, many people forget to check their odometer before they head out and therefore, unless they have made the same trip many times and already have a record of the number of miles done, it can become difficult to estimate your business mileage for that particular trip. However, you can simply use an online map and enter details of where you travelled from and to in order to get a good idea of the number of miles that you have done.
Andrew writes frequently about personal finance as well as issues effecting both consumers and small businesses, covering everything from savings to mortgages to Auto insurance car insurance.
Welcome to the November 8, 2011 edition of Tax Carnival Ecstasy. We have a great article from FastSwings.com in this issue about President Obama’s recent mortgage program that will help home owners refinance at the new lower rates. Hope you enjoy all the articles, bookmark, share, tweet, like on Facebook and come back soon.
Kristine Ann presents roth ira taxes posted at Roth IRA Rules and Guidelines, saying, “As a financial planner I’m always telling clients they need to diversify. Taxes are a lot like investments when it comes to the need to diversify. Tax laws change just like the stock market does, so depending on one tax strategy is similar to investing in just one stock”
Online Dividends presents $125 Chase Cash Bonus Deal – Exp 11/26/2011 posted at Blogging Banks, saying, “New clients of Chase can get a $125 cash bonus when they open a Chase checking account by November 26, 2011.”
Adriana Roux presents Sexy Power Ranger Costume Causes Lawsuit posted at Bankruptcy Attorney NJ RSS Feed, saying, ““Did you want to be the pink Power Ranger growing up?” This is the question that is used to market the sexy pink action hero costume found on MyPartyShirt.com. Besides the low-cut bottom and revealing top, the costume closely resembles that of Saban Capital Group’s original pink ranger, but the skimpy-ness of the Halloween costume is not what’s causing the controversy.”
Bruce Givner presents Blog l Estate And Tax Planning l Asset Protection posted at Law Offices of Givner & Kaye, saying, “Daily insights on estate planning, tax planning, asset protection planning and other matters regarding the representation of high net worth individuals and their closely held corporations.”
Martha Stewart presents Retirement Around the World: 25 Fascinating Facts posted at onlinemba.com, saying, “Retirement as we know it is a relatively new phenomenon, brought on by a combination of longer life spans, changing attitudes about work, government social programs, and the rise of a middle class.”
Sandra Campbell presents The Advantages of Small Business Credit Cards | Small Business Credit Cards | Best Credit Cards for Small Business posted at Small Business Credit Cards, saying, “Starting a new business can be a very exciting and stressful time for an entrepreneur, and you are probably faced with difficult decisions for your business daily.”
That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.