Why I LOVE Being a Home Business Owner

An oft-forgotten financial perk you get by owning your own business is the money you DON’T spend…for example on Taxes.

Non-Business owners, do the following:
Make Money
Pay Taxes
Buy Stuff

This means, things are purchased with “after-tax” dollars. So, when you think about how much you paid in taxes, the stuff actually costs more than the price tag you see at the store!

A Business Owner does it this way:
Make Money
Buy Stuff
Pay Taxes

This way, purchases are made with pre-tax dollars. The difference, between the two?

The business owner gets tax deductions for buying stuff he was likely already going to buy. For example:

  • Cell phone charges
  • Internet connection charges
  • Telephone add-on services(3-way calling, voicemail, etc.)
  • Office supplies(paper, pens, pencils, envelopes, stamps, print cartidges, etc.)
  • Computers and Printers(to the extent they are used for business activities)
  • Car expenses(50 cents per mile when using your car for business-related activities) (2010 IRS business-mileage rate)
  • Meals (when entertaining clients)
  • Entertainment(sporting events, golf, etc. when entertaining clients)PLUS- most of the expenses you incur in starting and marketing your business, such as:Advertising Expenses
    (business cards, flyers, classified ad charges, websites, marketing materials)Business Start Up Costs
    (Training Materials, business start-up fees, certification classes

Plus, in certain cases you can deduct part of your home mortgage, utilities, etc.

Although you may not make tons of money in your first few months with your own business, you could end up with a nice refund check thanks to business deductions- which is extra money in your pocket! That’s just one reason why I love being a home business owner!

*Note: This is not intended to be used as tax advice. You will need to speak with a tax advisor about your particular circumstances

To Your Success,

3 Responses to “Why I LOVE Being a Home Business Owner”

  1. Larry Pollock Says:

    This is a great selling point and benefit to any home based business. In the area of Network Marketing the new Associate spends on average $200 to $500 to get started.

    My understanding is they instantly receive $200 to $500 in tax benefits per Month!

    What most folks don’t know is they can’t afford not to have a home based business. It’s like getting your nutritional products or other services for free. A good CPA is a must in my book.
    Larry Pollock recently posted..Scott Skibell – Multi Camera Video and Sync Audio

  2. Lesha Ericson Says:

    I definitely created my own business at home and I have not regretted it one bit. It certainly feels wonderful, especially after my old company layed off a bunch of people.

  3. Candice Michelle Says:

    Building and growing a successful home-based business requires intense desire, steadfast dedication, a solid plan, sacrifice, quality products and services, specific skills, ongoing support, risk taking, and an unwavering belief in yourself and your dream.
    Candice Michelle recently posted..add college students

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