 How many
taxes do you pay?
How many
different taxes do you pay in a normal year? Here is a partial list of
some taxes you may pay: Social security, occupational, municipality and-or
school, county, state, sales tax, cigarette/spirits/beer/wine/gasoline,
capital gains, marriage / fishing / hunting licenses, inheritance,
unemployment insurance, and of course federal tax.
When was
the last time you
received a substantial pay raise (or any raise for that
matter)? Did you receive a raise that kept pace with inflation (listed at
2.63% as of January 2010)?
Is there a
way to reduce your tax liabilities, make and keep more money, and increase
the control you have over your income? Employees, retirees, dependents,
and the unemployed have only a limited number of tax deductions available
to them, relatively speaking. That is, compared to the self employed. Self
employed individuals either work for themselves or work for someone else
in addition to maintaining their own business. A car mechanic at Goodyear
who also runs his own part time tax return preparation service would be an
example. These groups also have a smaller degree of control over how much
more money they will earn, compared to someone who also has a part time
business.
How to
reduce your tax liability
Owning
your own microbusiness (a small part time sole proprietorship) is an
excellent way to tap into all the
legitimate tax deductions the IRS affords business owners.
Reducing your tax liability increases the amount of your income that you
get to keep. Don’t have any formal business management training? That is
not as important as knowing how to do something. Anything, really, as long
as you could reasonably expect to make money doing it. It is relatively
simple to turn your hobby or interest into a microbusiness and start
qualifying for even more tax deductions. Need ideas on ways to make
additional income?
Click here.
What is
the first step?
In
“Ten Steps To Open Your Own Business” a guideline is listed
that gives you the steps needed to get started. However, the very first
thing you want to do is identify your own strengths. What do you do better
than most other people and are you passionate about doing it? How
passionate do you need to be? If your biggest complaint is that time flies
by when working on your project and you don’t want to stop working than
you are passionate! Also, you should be able to identify your potential
customers. Who would buy your product, service, or expertise and how do
you lead them to your business?
10
basic steps
Step 1 -
Write a basic business plan. Answer basic questions.
Step 2 -
Decide on what your business name will be.
Step 3 -
Create a filing and recordkeeping system.
Step 4 -
Apply for an Employer Identification Number
Step 5 -
Apply for a sales tax identification number
Step 6 -
Apply for an operating or occupancy permit through the municipality, if it
is required.
Step 7 -
Open a checking account at your bank under your business name.
Step 8 -
Work with a
counselor who can work with
your through any questions.
Step 9 –
Actively look for tax deductions.
Step 10 -
Start selling!
Click here for much more
detail on these 10 steps!
Reduce tax, give yourself a raise, and
take control all at once.
If you are
unemployed, disabled, retired, young, old, a college graduate, a high
school dropout, or an employee of someone else you can own a part time
business. Structured properly, that business will allow you to use legal
tax deductions that were not previously available to you. Paying less tax
could end up being the equivalent of giving yourself a raise.
Additionally, you have the opportunity to turn an interest or hobby you
are passionate about, that used to strictly be an expense, into an income
generating asset. That gives YOU more control over your income and
personal financial situation.
Deducting hobby expenses - an article from Moneywatch.com
Want to
learn more about starting your own business and reducing your taxes? Visit
BowmansMoneyCollege.com for more information!
|
1. Create a financial plan - identify
your costs and then budget for them.
 Key: Actively directing your money in
the way you want it to go and more will find its way back to you.
Learn
how here!
2. Reduce costs without sacrificing
quality or lifestyle – learn to get 25% more.
 Key: There are many new ways to stretch
your dollar further than ever before.
Learn how
here!
3. Become an expert - the most fun way
to weave a financial safety net!
 Key: Developing your interest or hobby
is not only fun but can be a financially sound idea in 2010.
Learn how here!
4. Reduce or eliminate your federal tax
liability - turn your expertise into a small business.
 Key: Your skills and ideas can be
leveraged into tax savings through small business ownership even if you
are an employee and have no formal business training.
Learn how here! |
For more information visit
BowmansMoneyCollege. You are invited to join me at
LinkedIn! |