The Freedom To Choose Your Working Hours
Only someone who has never had a job like raising kids, or farming that has tasks to be done whether you are sick or not would ever come up with a saying like this, and yet it is one of the most common business-owner myths out there.
Unless you have so much money that you don't need your business to succeed any 'freedom' you have will be going right out the window the moment you open your small business or shop! You may have a bit more flexibility in the scheduling of your free time, but starting a small business will definitely cut into that free time if you plan on making it a success.
There are many write-offs you can take on things you otherwise can't write off
The IRS and the government do NOT give away money. Remember that - that is the reason for myth number one and two above, and unless you enjoy being audited it's never a good idea to write off any expenses not 100% related to your business endeavors even if they are used in relation to the business as well as your personal life. The best rule of thumb is to ask yourself whether or not you would still have this expense (say your car for instance) if you were not running the small business, and if so in any form or fashion then it is not a legitimate write-off.
Some common write-offs which are normally allowable include any computer and business software, rent, salaries and monies paid to independent contractors, advertising costs and even a percentage of vehicle costs if its use can be tied to the business in question. In some cases strict rules apply, such as whether you use the computer for personal use as well as business etc. so checking the law first is a good idea!
As the business owner you can set your own salary
Remember that caveat that keeps coming up about TANSTAAFL, the lack of a free lunch? If you give yourself too high a percentage of the earnings the IRS code that refers to 'unreasonable compensation' may cause you to discover what an audit, as well as business failure, is all about.
Cash flow is the key to a successful business, and a surprisingly large amount of the incoming cash has to flow right back out again in the form of investments, advertising and expenses to keep a business on the path to growth. Not setting enough aside for this is one of the reasons so many startup companies do fail in their first two years.
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