You have just started a new side business, congratulations. However, your work is just beginning. You will have to manage your time, display your talents, and manage your home and career life. This is okay though since this is just a side business.
You will continue to make money at your full time job so you do not have to depend on your side business bringing in thousands of dollars each month immediately. Instead, you can take advantage of side business benefits, such as financial security and start-up funds. You have already jumped into the business so today we are sharing some tips that you should know.
Business Entity Creation
When entrepreneurs are first starting out they usually operate as a sole proprietors. This is because of the ease of setup and the ability to file business and personal taxes simultaneously. However, when finances start getting hectic you will wish that you would have created a separate business entity.
You have numerous options when it comes to doing so and one of the most common types is LLC. It is simple to do and you can do it online too. However, you can expect to pay a minimum of $20 or a couple of hundred.
By doing so, you are able to separate your business and personal finances, which is essential when tax season comes around. Having an LLC benefits you down the road when tax season rolls up too. Filing taxes is also the same as it would be if you were to classify yourself as a sole proprietor.
The real benefit comes in when you think about your side business in the future. It may not always be a side business; you may add employees or maybe even a partner. When the time arises, having an LLC will make doing so easier. Furthermore, and LLC can be treated as a corporation when tax time comes, this means you could save money by using corporate tax rates.
Lastly, there is financial protection. Your personal assets are usually safe when it comes to your company debts. This means as long as you do not attach a personal guarantee to it your only losses will be within your company.
Make Sure You Have a Website
With the way that the economy is now, job security can be difficult. Even those who have college degrees and outstanding skills have issues with job security. You can keep your resume and skills top of the line but what does that really count for at the end of the day?
A side business website allows you to have backup income. One client of mine has built a nice side business selling college football jerseys on the internet. Another client is making side money selling patio and garden supplies on her website.
It may take you some time to build up a full time income from your own business and be able to live comfortably but once you are able to do so if you lose your full time job you do not have to go into panic mode until the next job comes along.
It can allow you to have less stress because you know in the back of your mind you have emergency full time income coming in from your side business website if you need to resort to using it full time.
Using TurboTax for Your Taxes
Just like all of the other tax laws TurboTax has your back. Remember, when you file your taxes with TurboTax, you don’t need to know which tax forms to fill out. We’ll ask you simple questions about your life and put your answers on all the appropriate tax forms. Here is a discount code for TurboTax which can help you save money when tax time arrives
TurboTax makes it easy to file your taxes. You can easily get your W2 online and accurately file in the comfort of your own home and save money. Last tax season 75% of tax filers received a tax refund and this tax season many are already receiving their tax refunds so there’s no reason to wait!