Are you interested in learning of an opportunity to make more money or work from home or be your own boss?? Most likely if you are on any kind of social media format or even driving down the highway these days, you’ve probably been approached by a line like that either by a friend or a stranger or a sign on the side of the street. And you may have had your interest piqued, but possibly were hesitant because you weren’t given all the facts. I can give you three reasons why adding a home based business is a wise decision.
- Becoming your own boss
- Traditional job securities are declining
- Tax benefits are massive.
In the traditional job scene, there are employees who come in early and work late and give above and beyond what is required of them for their paycheck - yet they continue to earn exactly what they agreed to be paid when they started. Once you become your own boss, you can be paid in direct proportion to how hard you work. If you have a driven personality and the willingness to work hard for what is important to you, this is a huge reason to become your own boss and add a home based business.
We were taught by our parents and the generations before that we needed a good education, good grades and a good job to be successful. A good job used to bring with it life securities such as steady income, retirement benefits and paid vacations and holidays. However, in today’s economy these securities are dwindling. Many companies are downsizing or outsourcing for cheaper labor overseas, retirement benefits are changing, the average employee doesn’t stay at a job longer than four years, thus not even allowing time for what retirement is possible to accrue and vacations and holidays are accruing at alarmingly small rates as well. Owning your own business allows for you to make your own schedule, invest your income in ways that will allow you to secure retirement funds for you and your family and determine how and when you get paid.
Lastly, we, as a tax agency, would be amiss if we didn’t tell you of the massive tax benefits available to entrepreneurs! The government has set up two tax systems - one for employees and one for self employed. The reason is to benefit those who are creating jobs. As an entrepreneur, you are creating potentially more jobs for others to come and work for you and the government actually applauds this with many tax deductions and “breaks” to encourage entrepreneurship. As a home based business owner, many of your everyday expenses become tax deductions - meaning they offset your taxable income -- offset or LOWER it. The lower the taxable income, the more of your income you keep rather than passing it on to the government. To read more detail on what is considered a tax deduction, see the post on tax deductions.
These three benefits are not just for the network marketing situations that many think of first. For example, a musician giving musical instrument lessons from her home would immediately be her own boss and have the following luxuries: Determining her own schedule, allowing market supply and demand determine her rate of pay, and getting paid in direct proportion to how hard she worked. She would be in complete control of her own job securities in having the luxury of a vacation as she deemed necessary. Investing her income in ways that secured her own retirement plan. And the tax benefits would apply in the same manner -- everyday household expenses become available to offset the annual taxable income. Expenses such as mortgage, rent or utilities for the home, repairs and maintenance to your instrument (piano, trumpet, etc), cleaning expenses, mileage to and from client meetings, product sales, music purchases, etc.
OTBTax specializes in tax preparation for the home based business owner. Much like the government, we support those creating jobs for others. Additionally, one of the first tax returns filed for a home based business individual allowed us to save her $5,100 from her previous year’s return. I want to be able to help more business owners find these savings as well so I’m happy to encourage home based business opportunities if you find one that fits you.
So if your interest is piqued by that message or the sign or you think you may want a home based business -- fear not and forge ahead. It may be the smartest financial decision you could make for yourself and your family.
We know you have questions. To chat with us (with no obligation) about your specific situation, give us a call at 888.409.1589. We will have you back to More Relaxing, and Less taxing before you know it.