Benefit Plans For Home Based Businesses
Are there tax benefits of starting a LLC in NJ if I'm not earning a ton of freelance money?
Hi - I earn about $3,000 a year on various freelance projects, ranging from entertainment writing to interior design. This is a relatively small portion of my income, and I've been listing it as ordinary income, filing 1099s and taking no deductions. I'd like to start an LLC, both to give more legitimacy to my work for my clients and to be able to take the home office / business expense deductions that I'm currently not.
I plan on doing the same volume of work and never hiring employees. Is this a smart tax move for me? Between computer equipment, the home office deduction and other expenses, I'd probably write off at least $6,000 in expenses a year. I'd love for the freelance business to take off one day, but I can't count on it and need to base my decision on current numbers. Thanks!
I don't see any reason that you would need an LLC...your liability should be almost none existant.
Having an LLC would not allow any further deductions.
If the biggest reason you want to start one is being able to create a loss..the rules are still the same (usually a profit in 3 out of 5 years, in your case, or it is a hobby and the expenses are limited to income). Basically, all you would be doing is creating more paper work for yourself with very little if any benefit.
Hope this helps.
The Benefits Of A Home-Based Business
A home-based business can give you A lot of benefits. Not only the monetary benefits, but also lifestyle benefits. If you are already working in your own home-based business or just entertaining the idea, be sure to evaluate your options and consider the value of the benefits you will receive. Because either lifestyle or monetary, the benefits can be far greater than you working for an employer. Home-based business opportunities can provide you with independence and financial freedom if you make wise decisions.
Money is not always the motivation people start a home-based business. Sometimes the intangible benefits are more important factors when considering home-based business opportunities. One of the more powerful draws to working from home is the sense of freedom you gain. You can set your own schedule, work the hours that are most convenient for you, and have time available for family obligations and leisure activities. Parents with children in school often think about what home-based business opportunities may be available to them. Teacher conferences, after school activities and the ability to be home when the children are out of school are strong motivators in making the decision to start a home-based business. Working from home gives you the benefit of flexible hours and the freedom to adjust your schedule according to the needs of your family.
If you plan properly and budget your time wisely, being your own boss can reduce the stress you feel due to constant demands and co-worker interruptions. Stress reduction is another benefit of operating a home-based business. Any business will likely produce its own kind of stress, but certain stressful factors can be avoided when you take advantage of the more promising home business opportunities that are available to you. You will have no daily commute, you will save money on gas and automobile expenses, and you will have the extra time in the morning and evening to relax and interact with your family instead of spending that time getting to and from work. If you plan properly and budget your time wisely, being your own boss can reduce the stress you feel due to constant demands and co-worker interruptions.
Research every one carefully and make sure you are willing to put forth the effort that will be needed in order to succeed. A home-based business opportunity can not only give you the benefits of earning money while working from your home it can give you A lot of other benefits as well. A home-based business is the perfect chance for you to attain financial and personal freedom. There are numerous home-based business opportunities available to you.
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