Freelance Home-Based Small Business Home Business Legalities And Tax Advantages

All Freelance Work is a Community for Freelance Workers Including Free Portfolios, Job Search, Job Posting, Helpful Articles, Forums, & More for the Self Employed.

Self-Employed Freelancers & Home-Based Businesses: Legal & Tax Advantages for Small Busines

by Dean Phillips

Home-Based Businesses Require a Business License or Permit

Even if you work out of your home, most cities and/or counties require you to have a business license and/or permit. Check with your local government municipalities to find out what the requirements are for where you live. Depending on where you live, you should be able to get this information from your local courthouse or townhall.

Zoning Laws and Your Home-Based Freelance Business

Zoning may also be an issue. Municipal ordinances can be very restrictive about what types of businesses are allowed in a residential district. This also applies if you plan on placing a sign outside of your home. Again, check with your local government municipalities to find out what the requirements are for where you live.

Depending on Your Home-Based Business' Structure, You May Need to File Forms With The State

In addition, depending on how your home business is structured--as a sole proprietorship, partnership or corporation--there may be forms to file with the state. The legal structure affects taxes and the liability of the owner and the home business, so it's important to follow the appropriate procedures. Contact your state's Department of Revenue for filing fees and information.

Home-Based Businesses Must Register a DBA Name With the County

If you plan to operate your home business under a name other than your own, you will have to register a fictitious name with the county--usually referred to as a DBA filing (Doing Business As). The exceptions to this regulation are corporations and partnerships doing business under the umbrella of the corporate or partnership name.

Home-Based Business Owners May Need to File Estimated Taxs Returns and Pay Estimated Taxes Quarterly

As a home business owner, you may be required to file estimated tax returns and pay estimated taxes quarterly. If you have employees, you also have to submit taxes withheld from employee paychecks. Here are some of the taxes you may be responsible for:

Employment taxes -- Federal income taxes, Social Security and Medicare, federal unemployment and state income taxes.

Federal self-employment tax--Required by those who work for themselves to cover Social Security and Medicare contributions.

Sales tax--Each state requires a sales tax number for any company involved in selling tangible items. Sales tax is collected, reported and paid to the state either monthly or quarterly.

Unemployment insurance tax -- You are required to pay federal and state unemployment taxes if you have more than one employee on the books for at least 20 weeks in a calendar year, or if they have paid more than $1,500 in gross wages in a calendar quarter.

Again, check with your state's Department of Revenue for more information.

A home business qualifies for all of the same tax deductions regular businesses do. In the eyes of the IRS, the only difference between most home businesses and Fortune 500 Companies is their size, and the fact that home businesses can also deduct many household and living expenses.

Owning a home business will entitle you to deduct thousands of dollars in every day expenses. After all, why pay more in taxes than you have to?

Listed below are just some of the items you are allowed to deduct:

* Your car and car expenses.

* Your mileage.

* Your home computer, printer and other office equipment.

* Your home. If you're not a homeowner, you are allowed to deduct the area where your home office is set-up.

* If you're a homeowner, you may deduct a portion of your property taxes and utilities.

* Your travel expenses.

* Your restaurant meals, entertainent, dinner parties.

* You may pay wages, tax free, to two of your children, if they are involved with the business.

* You may deduct your families health insurance.

NOTE: To qualify for the above tax deductions, you must be actively working your home business.

In closing, since tax laws are continually changing, I highly recommend you consult with your accountant or tax advisor to learn more about applying the aforementioned deductions to your home business.

Dean Phillips is an Internet marketing expert, writer, publisher and entrepreneur. Questions? Comments? Dean can be reached at mailto: dean@lets-make-money.net

Website: http://www.lets-make-money.net

HOW TO SET YOUR FREELANCE RATES - A GUIDE FOR FREELANCERS & CONSULTANTSThere are many factors which business owners must consider on a daily basis as it relates to the running of their business. Things such as how to find good help, where to acquire supplies and how much to pay one’s employees are all pertinent matters which must be addressed. There are a few ways to go about figuring out your rates when it comes to how much to charge the customers.

Apr 01

		SPOTLIGHT CONSULTANTS FROM OUR FREELANCE COMMUNITY

MARKETING PLANS : A Collection of Articles for How to Outline and Write a Marketing Plan for Freelancers Starting a Home Business or a Small BusinessA solid, well-prepared marketing strategy is the foundation of success in business. The freelancer or any type of business owner must become informed on the development of an effective marketing plan. The following links will focus on marketing plan articles for the freelancer to have a successful business.

Mar 20

Category: Getting Started - Self Promotion - Marketing | Trackback | No Comments »

BUSINESS PLANS: Business Plan Examples, Samples, Templates, Software and ToolsIn any type of the business including those people that perform freelance work, the proper tools are necessary to become a success. The following links consist of selected online tools for the freelancer to develop an effective business plan.

Mar 18

Category: Getting Started - Freelancing & Self Employment - Lists - Freelance Resources | Trackback | No Comments »

MAR 03

FREELANCING AND FINDING WORK AT HOME JOBSThe difficulty lies not in the fact that there aren’t plenty of work at home jobs available but rather in the fact that genuine, quality, money-earning work at home jobs are all mixed up with work at home scams. This makes finding a work at home job that’s legitimate a not-so-easy task for people who are just breaking in to the freelancing business. But don’t worry; once you learn the lingo and know the basics, finding a work at home job gets a lot easier!

Mar 16

BUSINESS PLANS : A Collection of Articles for How to Outline and Write a Business Plan for Freelancers Starting a Small Business

Business plans are necessary in all types of businesses … and this also includes freelancers. Writing an effective business plan will help you plan out the success of your future business. Factors such as customer base, profit potential, as well as many other factors will be placed in this document. The business plan will help you, the freelancer, think through every aspect of your future successful business. We found the following business plan articles to be very helpful and we hope that you will find them to be useful too.

Category: Getting Started - Lists | Trackback | No Comments »

FEB 25

HOW FREELANCER WRITERS CAN DEFEAT WRITER'S BLOCKHelpful hints and tips to overcome the dreaded White Page Syndrome - There is probably nothing more dreadful and problematic for a writer than not being able to get going, being stuck on a menacingly white page. Read on for more ideas on how freelance writers can overcome Writer's Block.

FEB 19

WAYS TO GET MORE CUSTOMER REFERRALS FOR YOUR FREELANCE BUSINESSThe amount of customer referrals will often determine how successful one’s freelance business can really be. As word spreads quickly, having customers refer others to you and your services is a wonderful way of gaining new freelance business and making more money. There are a few distinct ways to get more client referrals for your business.

FEB 18

FREELANCE HOME OFFICE DISTRACTIONS VS DISTRACTIONS WHEN WORKING IN AN OFFICEOf course, distractions are different depending on whether you are freelancing from home or working in an office. Both kinds have their pros and cons so let’s take a look at some of the basic ones so that you can start getting a grasp on good vs. bad distraction behaviors for freelancers.

FEB 08

WORKING FULL TIME WHILE RUNNING YOUR FREELANCE BUSINESSThe key to being able to make the transition to full time freelancing is in setting goals that allow you to focus on moving away from working full time for someone else and towards putting more hours in to your freelance business.

FEB 06

20 WAYS TO PROMOTE YOUR FREELANCE SERVICES USING ONLINE FORUMSThere are a few distinct ways in which freelancers can market their services through forum marketing techniques.

JAN 24

60+ UNIQUE LOCAL & OFFLINE MARKETING IDEAS FOR YOUR CONSULTING BUSINESS Although online promotion is important for your freelance business, it’s crucial to remember to go back to your basics and do offline promoting as well locally, nationwide, and worldwide depending on who you are marketing to. Here are over 60 ideas to market your consulting services locally. Let Freelance work find you.

JAN 22

WHAT TO DO WHEN YOUR CUSTOMERS ARE GOOGLING INFORMATION ON YOUThis can be an issue for freelancers whose customers google them and try to find out information relating to them and their business. The following is a list of what to do when your customers are googling information on you.

JAN 19

26 THINGS TO DO WHEN BUSINESS IS SLOW AND IN DOWNTIME MODESome freelancers are anxious to work day in and day out which may present a problem for them when business is slow. However, there are many things which freelancers can do to bide their time while waiting for new freelance work to come in. Here are 26 ideas for staying productive during your consulting business downtime.

JAN 15

ONLINE CUSTOMER SERVICE TIPS FOR FREELANCERS & THE SELF EMPLOYEDThere is a casual attitude about communication that takes place online and that creates an environment in which customers sometimes don’t take your work seriously, leading to problems with projects and payments. In order to avoid those problems, you need to make sure that you are conducting all of your online work in as professional a manner as possible. Here are some tips on how to do that.

JAN 02

TOP 150 PLACES TO TRAVEL WITH YOUR FAMILY WHEN YOU STILL NEED TO GET WORK DONEWhen you are self-employed, there is no vacation time to save up, and there is no one to cover for you when you’re away. For many that mean giving up on vacations altogether, and this is what I have been doing for awhile. Most of These All-Inclusive Family Resorts Have Kids Clubs in Which Your Child can enjoy supervised and fun activities while you and your spouse can have fun or get freelance work done. Take a look below and enjoy!

DEC 30

LIST OF ARTICLE SITES, BLOGS, AND INFORMATION DIRECTORIES FOR FREELANCERS, CONSULTANTS, AND THE SELF EMPLOYED Do you ever get frustrated when you can't find the information that you need about freelancing? Well, I've just compiled a list of the best article sites, blogs, and directories for freelancers, consultants, and the self employed.

DEC 30

DECIDING WHETHER OR NOT TO FREELANCE OFFSITE OR ONSITE Deciding to work onsite or offsite sounds like a relatively simple decision, but it’s actually one which isn’t easy to make. Sure, when you’re lying in bed just after the alarm has gone off and you see that it’s raining outside and all you wish was that you could go back to bed for ten minutes and then do your freelance work from home, working offsite sounds ideal. But there are as many cons to the offsite work job as there are pros and you need to weigh them carefully when making the decision about whether to work onsite or offsite.

DEC 21

IS FREELANCING RIGHT FOR YOU? Freelancing, a term introduced by Sir Walter Scott (1771-1832), is when you work without being committed to an employer. With development of internet and communication technology, there has been a dramatic rise in the number of people going their own way and leaving behind the cubicles. You are reading this book, so you must be contemplating becoming a freelancer, but before you make your move there are a few things to consider.

DEC 20

FREELANCER'S GUIDE TO TIME MANAGEMENT The most common problem that freelancers face is figuring out the balance between work and the rest of life. While there are a few freelancers out there who don’t work as much as they need to in order to pay their bills and improve their business, most freelancers have the opposite problem – they work ALL the time. And that’s why there are a great number of freelancers who “burn out” after a short (or if they’re lucky, a long) time. In order to make sure that you aren’t one of those people who “used to freelance but got burned out”, you need to set limits on how much you work. Then you need to stick to those limits.

DEC 16

SHOULD I TURN DOWN FREELANCE PROJECTS? As freelancers, we often feel as if we have to say ‘Yes’ to every single job out there. However, we as freelancers are in a position where we can choose to say ‘No’ if we want to. Believe it or not, there are certain projects that you probably shouldn’t accept. Turning down work is probably the hardest decision you will need to make when running your business, but sometimes turning down a gig is necessary. In this article I will explain to you the details that you need to consider when you aren’t sure which route to take. Consider the following:

DEC 12

COOL IDEAS FOR YOUR BUSINESS CARDS As freelancers, we need to promote ourselves with business cards. How about putting yourself ahead of the rest of them by designing and printing completely unique business cards? You are about to take a look at the coolest and most innovative business cards that you have ever seen.

DEC 10

LIST OF FREELANCE FORUMS & MESSAGE BOARDS Looking to get together with other freelancers? Want to network? Want to ask questions about freelancing that you can’t find the answer to anywhere else? Look no further than the freelance forums that we have listed below. Feel free to let us know about forums that we have missed.

Self-Employed Freelancers & Home-Based Businesses: Legal & Tax Advantages for Small Busines

Home-Based Businesses Require a Business License or Permit

Zoning Laws and Your Home-Based Freelance Business

Depending on Your Home-Based Business' Structure, You May Need to File Forms With The State

Home-Based Businesses Must Register a DBA Name With the County

Home-Based Business Owners May Need to File Estimated Taxs Returns and Pay Estimated Taxes Quarterly

SPOTLIGHT CONSULTANTS FROM OUR FREELANCE COMMUNITY

Read More Articles from the ALL FREELANCE BLOG & SELF EMPLOYMENT BLOG