Chapter 4

 

 

In Chapter 3, I discussed about what tax benefits you can get, if you have a business.

You will be surprised to see number of tax deductions a businessman get. Most of the CPAs move around 20 to 25 major deductions in preparing a business return. But IRS tax code offers over 300 deductions to a business owner. You can even get deduction for foreign trip with your spouse.

If you are a W 2 Wage earner, you cannot claim most of these deductions on your return.

BUT YOU MAY ASK:" Mr. TAX EXPERT, I HAVE NO LICENSE, MONEY OR TIME TO SET UP A BUSINESS. I DO NOT WANT TO INCUR LIABILITY TO PAY LEASE RENT FOR BUSINESS AT THIS STATE AND WHAT SHOULD I DO IN SUCH A CASE?"

Your question is legitimate. I do not say you incur liability to pay rent of $ 18000 a year to claim deductions of 24000 in income and save taxes of $ 5000. IRS also does not require that there should be business outside of your home, for being eligible to get deductions.

Just Start Business from Home-No Risk, No extra cost, but get deduction for All Home Expenses

You need not enter into any lease or other contracts. In fact, you need not spend anything to declare your business started. All you need is just print your business card and open business bank account. (In fact, if you open business bank account within 30 days from today’s date, with our reference, with Chase Bank; you will get $ 50 cash deposit in your account. Call us for details). Second thing you ought to do is to send some emails/letters to friends or prospective customers that you offer particular services. Alternatively you can place just free ad on websites like Eknazar.com or Sulekha. This too, will be free of cost to you. This creates proof of your efforts for operating business.

 

Don’t worry over what business to do, whatever you do can be turned into business.

Do not worry too much as to what business you can do. There lots of profession or business which do not need any license. You need not be engineer or doctor. Even you can provide data entry services form your home computer and call it a business. Simplest thing to do is consulting, as it attracts no sales tax and needs no capital. You can be photographer, Artist, Tutor or any kind of labor contractor providing assistance for physical or mental work of any kind. In fact you can even start MLM or internet based business. You can even place your items or old books or furniture on EBAY and start business of selling things on eBay. You can even start business of teaching Hindi or other foreign languages or Baby Sitting form home. If you are already a consultant or contractor getting 1099 from your employer, then you need not do anything because you are deemed to be doing business in such case. You can just talk to us for help in claiming right business deductions. Let me summarize.

Setting up business does not involve any extra expense or investment or time. You can do it at home at your convenient time. It does not need extra training or experience. You can do anything in the fields, which you already know. You just need to declare to Govt. or Public that you have started business.

You can declare this to Government by filing Assumed Name with County or by Incorporating. You can ask us for guidance about this.

You can declare to public by putting up ad on websites, placing flyers in stores, by sending email, or even just by printing business cards.

You can ask our help at all stages of business, including set up of business, incorporating, record keeping, Sales Tax or Income Tax or Payroll Tax registration and returns, raising finance, marketing, or acquiring right software, or training in accounting or software skills or any other area.

 

If you have still any questions, please call us at Perfect Tax.

These notes are not to be treated as legal advice. Implementation of the strategies or tax saving ideas without advice from a tax-planning CPA or tax-planning Attorney can lend you in trouble, as they require proper documentation, proper accounting and proper scheduling. We disclaim any liability to anyone acting based on these emails without our full consultation.