LLC

Home-based Business, LLC

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Think about the beauty of a home-based business: low overhead costs, time flexibility, working while the kids wrestle, making business phone calls in your jogging clothes, and, well, lets face itbeing your own boss! But do you sometimes find that others dont really take your business seriously simply because you operate out of your home?

People are conditioned to think you must have a storefront, a business office, a manufacturing facility, or be listed on the New York Stock Exchange to be a legitimate business entity. Even though more and more people are choosing to work from home there is still a perception that “real” businesses lease space in an office building or strip mall. Perhaps doing one small thing could change how people see you and your home-based business.

Now, think about the beauty of a Limited Liability Company or LLC. The primary benefit to you in structuring your home-based business as an LLC is just that, limited liability. You gain peace of mind in knowing that you have limited personal liability for company obligations. Should hard economic times or a poor management decision threaten the company, you can have confidence that your personal assets are not at risk. This is not the case when operating as a sole proprietor.

Secondly, the tax benefits of a home-based business remain in place with an LLC. The IRS allows for pass-through taxation which means business income and expenses are reported on the owners personal tax return on Schedule C. You are still entitled to the deductions for a home office (when applicable) which is a major advantage to the home-based business owner.

And, finally, the LLC legal structure will enhance the image of your business. Your company name will now be followed by a legal designation which speaks to the unconscious mind of potential customers, business associates, and investors or lenders. You may even find yourself believing in the future and vision of your business more than ever before.

The degree of success of a business derives from many variables. Some are blatantly obvious while others are more subtle, even unnoticed on a conscious level. Overcoming peoples objections really involves finding out and overcoming their preconceived notions that prevent them from recognizing the benefit they receive from doing business with you. Presenting your home-based business as a legal entity is one weapon in your arsenal for accomplishing this.

Just think! In no time at all and with minimal cost, you could transform your home-based business into a tough competitor and secure the very home where you live and work at the same time. Now that sounds like a win-win situation. Who needs to be one of “the corporate big boys” when you can be an “LLC” instead?

Disclaimer: This article is for informational and entertainment purposes only, and should not be construed as legal advice on any subject matter.

How To Start A Home Based Business The Right Way

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If you are thinking about starting your own home based business you have a whole list of items to consider before making any financial or time investment. As with any business, home based businesses have to follow a certain protocol to become successful, but, it mainly falls on the shoulders of the business owner to make the right decisions at the right time.

The first question you should be asking yourself is: “Am I the type of person that can manage a home based business?” The reason you need to ask this question is because, although the idea of being your own boss sounds lucrative, not everyone has an owner mentality. An owner mentality would be someone who possesses the following traits: self-starter, self-motivated, organized, detailed, aggressive, and disciplined. Let’s add one more for good measure: committed.

You absolutely must be committed to starting your own business. Someone who is committed is going to take action and not procrastinate about things that need to get done. This is so important to the success of your business. There is a big difference between someone who is interested vs. someone who is committed. The interested person may or may not follow through on key initiatives, while the committed person will absolutely complete the task required.

OK, so now you perceive yourself as committed to managing your own home based business. Now what? You’ll have to make the decision to register yourself with your state as Sole Proprietorship or perhaps start a Limited Liability Company (LLC). A ‘Sole Proprietor’ is someone who owns an unincorporated business by himself/herself. The owner receives all profits and is responsible for all losses and debts. An ‘LLC’ is a business structure allowed by state statute. LLCs are very popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. There is also the benefit of pass-through taxation.

Decide which one you’d like to be and be aware there will be filing fees involved when you register with your state. You should not make this decision on your own and it’s highly recommended that you consult with your income tax professional.

Next in line is deciding what type of business you want to run. There are many factors to consider before you make your decision. For example, what do you like to do? Do you have any hobbies or special skills you can turn into a business? Can you turn your earlier working knowledge into a business? Your first task is to find out what you really want to do. Something that you will enjoy doing and can see yourself promoting with unrivaled excitement. For our purposes we will focus on non-franchise home based ideas since franchise businesses usually carry a high monetary investment with them.

Here are just a few ideas to get you thinking:
Bookkeeping – keeping a client’s financial records
Collection Agency – you’ll need excellent communication skills for this one
Computer Training – one-on-one or in groups
Computer Tutoring – one-on-one and your client comes to you
Copywriter – create marketing brochures for customers
Desktop Publishing – providing printing services to clients/organizations
Medical Transcription Service – produce typed reports from doctor’s dictations
Online marketing – selling your own or other company’s products
Technical Writing- technology products that need descriptions
Video Production Services – take old videos and make them professional quality
And many, many more… Home based businesses have gained in popularity in recent years. You can say there is a close relationship between the recent economic hardships and a booming interest in working from home. Aside from the above list, you’ll find such things as paid surveys, mystery shopper opportunities, and several others. You can make money filling out online surveys right from a laptop on your kitchen table. There are thousands of companies around the world that invest large quantities of money in trying to figure out consumer trends. These companies are interested in finding out how consumers behave and why they are more apt to purchasing certain products and not others. While this may not be able to pay for the rent or mortgage, a few dollars here and there can’t hurt. With a little luck and plenty of research you can find these companies and sign up to receive their surveys.