Use Home Based Business to Make Money

Home based business is going to give you some advantages. The first one is you are free from the office strain and boss ego problems. You need not travel in the traffic congestion to reach your office on time. You are not going to your home business with lot of complaints and unwillingness. You can just do it happily and for that you can choose the work that you love to do.

You shall make sure that you have enough knowledge about the new venture that you are going to start. You also shall do some ground work and find out the pros and cons of that business. Observing the people doing the same business can give you some good insights about the business.Home based businesses not only give you extra income but also some extra tax benefits. To get these advantages you shall properly structure your business according to the existing laws and income tax rules.

You can try solo partnership for the home based business. It will give you some advantages. In this case you need not pay income tax twice that is both on the personal income and on the business. There is no need to hold meetings with share holders and board members. As you are the solo owner of the business and not employed any one in the job, you can file the income tax with your regular social security number.

The loss you got in the home based business in the first or two years can also give you the advantage of saving your tax. Solo partnership is the simplest way of organizing a business. If the loss occurred in the first year is more than your income, you can pass on this loss to the second year to get the tax exemption. It has certain advantages like:
  1. You can claim a 60 % exemption on the medical insurance premium when it is paid from your bank account.
  2. Being a business owner you can enjoy all the profits you got in the business.
  3. The structure is simple, less paper work and less number of tax forms to fill.
  4. Maintenance is quite easy.
  5. Passing ownership is a simple process.
  6. You can promote business with friends and family members with a personal touch.
The serious disadvantage is your liability. Being the solo business owner you are responsible for every thing that happens in the business and need to face the liability consequences. This you need to take care and shall take enough measures to cover. If there are employees in your business, you are liable for their behaviour and it is better to have some partnership and a business structure.

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