As a small businessperson, you need to take advantage of every tax break you can find. Knowing what kinds of deductions are available can help you plan your work for the year. You'll be more aware of the choices you make and remain vigilant about keeping receipts once you see the impact deductions can have on your tax liability at the end of the year.
Taxpayers often dream about using a hobby, like collecting stamps, for a tax deduction, but the Internal Revenue Service won't let this happen unless it is also a business. Turning your hobby into a business can provide the tax breaks a regular company receives, but you probably end up paying more to Uncle Sam and may regret monetizing your passion.
Starting your own business can be a good way to replace a traditional job or even earn supplemental income. However, the startup costs can be intimidating. Fortunately, it is not necessary to spend thousands of dollars on a new business launch. You can start a business with $500 and nurture it into a part-time or full-time money maker. The secret to starting a business on a tight budget is choosing the right business and buying only what you need at the outset.
The number of home-based businesses has increased to more than 38 million households, according to Home Business Magazine and U.S. Census statistics in 2010. The unemployment rate in the U.S., according to MSNBC, rose from 4.7 percent to 9.4 percent between May 2007 and May 2009, but the Internet and rapidly advancing technology have made working from home more possible than ever. These factors, according to Home Business and "Businessweek" magazines, have contributed to the increase in home-based businesses. Whether you make jewelry, design websites or teach music lessons, successfully starting a home business is common and has several benefits.
Tutors for all subjects and students of all ages are in demand. Sometimes people even need tutors to help them pass important examinations or prepare for advanced education. You may eventually get so much business you have to hire other tutors to help you meet the demand.
You may not need a college degree to start a tutoring business. Some clients may be willing to hire you if have significant experience and skill, or talent with the subject you are tutoring.
If you play the piano, showing others how to as well is a way to earn some income and develop a new skill of your own: teaching. Whether you teach full-time or part-time, go to students' homes or have them come to yours, a piano teaching business is one that you can tailor to your schedule and fit in to your lifestyle. Piano teaching is a wonderful source of additional income for students, parents or anyone who has a few spare hours each week.