Is a small business the way to go?

Question

I am working a "day job" around 35-40 hours per week, but technically part-time. My husband works a full-time salaried position, has good benefits and no sign of potential lay-off. In addition, I'm an author, with a book released this past spring. I'll begin receiving royalty checks this fall. I've made $100+ this year doing ghostwriting assignments. I've also begun to make good money providing a spiritual service to others. I know I'll have to report my extra earnings when we file our taxes.

I've been encouraged to form my own business providing the service. I've been told that I'm talented, and I'm the only person in my city who performs this service. I could potentially be making 5x my current wage, or more. I already own the necessary equipment, and would just be looking for a space to use. It's possible to pair with an existing storefront.

Is it worth it to start a new business, or should I just do this "on the side?" What is the difference, tax-wise? TY in advance.

Answer 1

Any income that you earn at home is a considered to be a home  based business. You should be writing off your home office space, your car, all of your computer and office supplies too. You just need to document it properly. The worst thing you could do is rent an office space, then none of your home related costs are deductible. Check out the link below and click on Tax Strategy products. You can listen to some home based business tax tips. It might seem expensive for the tax diary and the audio cds but it's worth it. I have saved so much money in taxes already. I think everyone should have a home based business for the tax benefits alone!

You sound like you're a real go getter, if you're interested in making a little extra money at home I just got started with a company called. They have Eco friendly, household and personal care products that are less expensive than what you buy in the store. By becoming a preferred customer you get a huge discount and $20 of free products every month. It's only $1 to join by the end of the month. If you refer 8 people to become customers you can make around $850/ month. I've referred 4 people in only my first week. It is so easy, the guy who signed me up does Online presentations throughout the day so if you want to learn more I can set one up for you. The best part of this company is you don't have to sell products, and the customer retention and reorder rate is 95%! It's just a really great company that's been around for over 20 years, and it doesn't jerk people around or rip them off! As you can tell I'm really excited about it, and I think it's a great business opportunity!

Answer 2

Tax wise, as a business you will have legal business deductions that you will not have to pay taxes on the income. As a side job you just have income to declare.

If you want all the accurate info you should talk with an accountant for good advice.

If you have earning potential, you should get a business license and operate as a business to receive those self employed benefits.

If you have a storefront you have potential of receiving more clients. You should consider your pros and cons of leaving your day job to operate your business. It may be that you will get a license, do business on the side and then move to a store front when the income of the business warrants you to devote more of your time to the business.

Answer 3

I establish online business for over 40 people and al of them are making over $5000 monthly. If you would like my help you can contact me through

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Answer 4

The tax benefits ALONE are worth establishing a business for your side project.  Get in touch with your local city hall to get a business license in place.  You can write off gas money, traveling, square footage in your home for an office... the list goes on and on.  

Sounds like you've got a great thing going.  

Good luck!