One Important Aspect in Starting a New Business

Actually, there are more than one important aspect.  It’s that most people do not mention this one and for people starting out on a shoestring with little knowledge on running an Internet (or any other kind of business) business, this can be a deal maker.

Back in my early years I studied accounting and as a result passed the exam for my tax preparer’s license.  Yes, in Oregon, at least back then, you had to have a license to prepare other people’s taxes.

So I learned early on that if one is going to start a home-based business and use the power of the Internet then they had better know something about tax law, at least until they are making enough money to afford a tax attorney or CPA or at least a good course on business taxes.

As an example, if you invest $4,000 to launch your business and you have not made any money during the year, that $4,000 can go towards reducing your income from your day job and thus reduce your taxes.

Knowing what records to keep and how best to keep them can reduce your taxes significantly until you are making a decent profit.  So do not let the initial investment hold you back from starting your own Internet business working out of your passion.

By working with a group that is willing and able to guide you through the tax laws, you will feel much better about your decision.

However, time may be running out for you to take advantage of our tax laws because two groups are pushing for their own form of tax collection to replace the IRS, which in the long run will be good.

If you have ever filed a complicated 1040 then you know about how difficult it is to understand the USA’s tax laws.  There are movements to make the taxes more fair and just and they are gaining popularity.

One is the Fair Tax or a national sales tax and the other is the flat tax or a set percentage of a person’s gross earnings.  From my readings the Fair Tax is more interesting, but that’s another story.

The main points are: do not hold off starting your own business because of the cost and take advantage of the tax laws to help cover some of your cost.  The USA tax laws favor the self-employed, not the wage earner.