How to Keep the Money You Work For:

Fire your boss and become self employed, an Entrepreneur.  That way every dollar you earn is yours [after taxes of course.]

Being self employed has the perks of having business deductions: office space and utilities, supplies [paper, printer ink etc], equipment [computer, desk, chair], mileage, seminars, training, business tools to name a few.

What idea do you have?  Is it for a product or a service or a combination?  Make sure it is in line with your passion.  Your passion for success is NOT to make lots of money.  Your passion must be related to the mission or the specific product, making money is the by-product. .

  • Do you want to make the best, most efficient whatsit?
  • Do you want to offer the customer the best ‘name type of service’ available?

Safeguard your own assets by registering as an LLC.  If there are lawsuit or financial issues for your business keep the problems there and not let them invade your personal space.  See my previous blog on this topic.  http://drjill-live.com/?p=242

As many small businesses fail within the first 5 years, make sure you have done your homework, and have a solid business plan.  Make sure you have studied advertising, marketing specific for your business.

  • Google for internet sites for businesses similar to yours and see how they are presenting themselves.
  • Then focus your advertising on how your business is different, stands out from the others.  Market your strong points.
  • Keep all advertising focused on your target market – a focused marketing program is more likely to get you known for your specialty.

Get a mentor.  Even if you are a brick & mortar business you can have a mentor.  You just have to be creative.

  • Don’t go to an Italian Restaurant down the street and ask for any mentoring when you own an Italian Restaurant!
  • Instead look for yellow pages online in a distant city for an Italian Restaurant, review their online advertising and talk to them.
  • If they don’t want to help, just keep looking and studying advertising of others.
  • The non-local business that is related to you will not be as likely to view you as a threat and may be willing to offer guidance.

Get a mentor.  For online businesses whether it is direct marketing, MLM or a web storefront you can find a mentor.

  • Just check into their experience and success.
  • Don’t fall for the “I can tech you how to make $50,000 in 90 days.” type folks.  Those are the get rich quick type that are usually scams.
  • Look for mentors that have a success record in their field.
  • See if the mentors are recommending sequential and clear teaching modules.
  • Does the mentor offer webinars as well as one on one coaching?

Online marketing has advantages to consider.  Lower overhead – no store front.  If you are marketing something that another company actually manufactures you can avoid inventory by being a drop shipper.  Marketing products online that are available online and do not have to be shipped cuts your overhead way down.  You would just need your laptop and space to sit as far as physical space requirements.

Don’t reinvent the wheel!  If there is a good system or training program available use it, don’t reinvent it.  You might decide to up grade an existing system though – just make sure you are not doing infringing on a copy-write.  There have been folks that have gotten involved with affiliate marketing of a product to learn how to market well then move on to marketing their own product.

Training, education, research and mentoring are the points to consider carefully in starting your business – the one you want to make money with.

So you have your own business. How do you keep your liability low and save money on taxes?

  • You might want to look into forming a Limited Liability Company also known as LLC.  A LLC is the merging of corporate structure and partnership structure of business, but in a simpler form.  With a LLC there is much less administrative paperwork and record keeping than for a corporation.
  • In most states having a LLC name will prevent someone else going into business with your LLC name, but only in the registering LLC’s State.
  • Owners of a LLC have the liability protection of a corporation. A LLC exists as a separate entity much like a corporation. Members/owners cannot be held personally liable for debts unless they have signed a personal guarantee or unless fraud or misrepresentation has occurred.
  • LLC is simpler to form than a corporation and has lower tax obligations.  Single owner LLC may use Schedule C on his personal tax return.  Multiple owners is a Partnership LLC and may be reported on IRS 1065.  Either single or multiple owners may elect to be set up and taxed as C or S Corporations.  With the S Corporation being the simplest to set up and run.
  • The District of Columbia, for one, considers LLCs to be taxable entities, thus eliminating the benefit of “flow-through taxes” by subjecting members to double taxation. Under these circumstances, LLCs will usually choose to be taxed as a partnership to avoid double taxation, which occurs in corporations. This allows companies to distribute their income among members who then report it on their personal tax returns.
  • Many states have a franchise tax or capital values tax on LLC’c some of these are Alabama, California, Kentucky, New York, Pennsylvania, Tennessee and Texas.  This franchise tax is usually small compared to corporation tax liability savings and financial legal liability risk reduction.
  • It is urgent to note that Single owner must have separate bank account for the LLC and pay himself from that account.  The single owner may still report profit/loss on his personal income tax, but there must be a separation of funds in the day to day operation.  For example: Do not pay the household electric bill from the LLC checking account directly, but write a check from LLC to personal account then pay personal household electric bill from personal account.
  • There are many benefits of creating an LLC which make it worth the initial application form completion and the initial fees.  Taking time to investigate your State’s policy will be worth your time to assure your legal standing for taxes and daily function.  There is some recognition with International LLC’s that is imperative to investigate.
  • You need to check out your states regulations and complete the forms.  You do not need to pay an online company or a lawyer to do these forms, for single owner or basic simple partnerships.  Obtaining the filing forms and regulations from your home office state will insure you are compliant in your place of operation.
  • Search for www.state.PutNameofYourStateHere.us  to find out your local information