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Monday, January 07, 2013

Start a Business-Earn Income-Stay at Home

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Mr_Money
Are you thinking of starting your own business? The idea of starting your own business is an exciting proposition, but it can also pose many challenges. Entrepreneurship requires hard work, planning, organization and dedication. You have to be creative, independent, and willing to take risks. It also helps to have a strong support system or a business mentor. A business mentor is someone experienced in running a business and can provide insight and guidance. There are many aspects to starting a business and being well informed will insure that you are prepared to venture into entrepreneurship. The more prepared and organized you are while starting your business the more likely you are to be successful. Here are some steps to take while starting up your business.
Make a business plan--
Choose your business structure--
Choosing the structure of your business will determine your legal and tax responsibilities and implications. There are many different types of business structures and it is important that you decide which structure will work best for your business plan. Types of business structures include sole proprietorships, limited liability company (LLC), partnership, corporations, and S Corporations. The most common form of business structure is sole proprietorship. Each structure has unique advantages and disadvantages.

Filing and paying taxes--
The first thing to establish when figuring out the proper method for paying taxes on your business is to determine whether it is a business or a hobby. There are unique requirements and advantages to being a business or a hobby. If it is decided that you have a business then you need to obtain a federal business tax id. Then you need to find out what your federal and state tax obligations are and when your tax year starts.

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