Owning a small business

[Happy Panther]

I know some of you guys own your own business.

What are some general advice you might have.

1) obviously i assume i will need a separate corporate account. Is it beneficial to have a corporate credit card for ease of tracking expenses

2) What are some ways to minimize taxes. It will be a home office so i can deduct that. Any ones I might not be thinking of?

[PanthaSan]

Taxes? What's that?

Don't forget that you can usually write off the start up costs. Look into what you will need to do if you want to work overseas. If you can swing it, minority contractors get moved to the front of the line, so to speak, when bidding work. Female owned businesses have even more of a priority.

That's why our business is in Mama-San's name.

[Johnny Rockets]

I know some of you guys own your own business.

What are some general advice you might have.

1) obviously i assume i will need a separate corporate account. Is it beneficial to have a corporate credit card for ease of tracking expenses

2) What are some ways to minimize taxes. It will be a home office so i can deduct that. Any ones I might not be thinking of?

Yes, use a corporate credit card for all transactions. Much easier to track and cash transactions can get messy.

Home office (including a % of the utilities based on the sq. of the home office), cell phone usage, mileage is a big one, "business" meals, credit card interest if you carry a balance, etc. Only bad thing about a home office it that it likes to draw attention to you for an audit.

Couple of other things that come to mind. Quickbooks by Intuit is an excellent program to manage expenses, transactions, banking, even payroll if you will have one.

Also, if you plan on doing your own taxes until it gets to big to manage then I recommend Turbo Tax Home and Business program. It is really user friendly, you learn a lot, and it links up with Quickbooks if you chose to use that.

Remember that you don't have to show a profit right from the get go.

[Scrumtrilescent]

Yes, use a corporate credit card for all transactions. Much easier to track and cash transactions can get messy.

Home office (including a % of the utilities based on the sq. of the home office), cell phone usage, mileage is a big one, "business" meals, credit card interest if you carry a balance, etc. Only bad thing about a home office it that it likes to draw attention to you for an audit.

Couple of other things that come to mind. Quickbooks by Intuit is an excellent program to manage expenses, transactions, banking, even payroll if you will have one.

Also, if you plan on doing your own taxes until it gets to big to manage then I recommend Turbo Tax Home and Business program. It is really user friendly, you learn a lot, and it links up with Quickbooks if you chose to use that.

Remember that you don't have to show a profit right from the get go.

And you have to pay taxes on it when you sell. And you can keep rolling over your losses for taxes as writeoffs until they are gone. And I have to take a crap.

Quickbooks has a web-based version now that my wife loves to use.

[Happy Panther]

Yes, use a corporate credit card for all transactions. Much easier to track and cash transactions can get messy.

Home office (including a % of the utilities based on the sq. of the home office), cell phone usage, mileage is a big one, "business" meals, credit card interest if you carry a balance, etc. Only bad thing about a home office it that it likes to draw attention to you for an audit.

Couple of other things that come to mind. Quickbooks by Intuit is an excellent program to manage expenses, transactions, banking, even payroll if you will have one.

Also, if you plan on doing your own taxes until it gets to big to manage then I recommend Turbo Tax Home and Business program. It is really user friendly, you learn a lot, and it links up with Quickbooks if you chose to use that.

Remember that you don't have to show a profit right from the get go.

Very cool.

So i spent $400 incorporating a company yesterday. i will need to buy probably $2k of office equipment and some software. Made a bunch of overseas phone calls today. Will have a separate home office phone line.

I am flying overseas in a few weeks and will have 2-3 dinners as well as golf

Mileage to the airport. Taxi fare overseas.

i am assuming all these are deductible except for the dinners and golf which are 50%

What about cell phone bills??

[Happy Panther]

Oops you answered cell phone.

Can i deduct all calls or just business?

[Happy Panther]

OK here is one.

I bought a desk and computer a year ago while i was working for a company. Now that i am self employed I will be using both. Can i deduct any part of the cost of these?

[charlotte49er]

I know some of you guys own your own business.

What are some general advice you might have.

1) obviously i assume i will need a separate corporate account. Is it beneficial to have a corporate credit card for ease of tracking expenses

2) What are some ways to minimize taxes. It will be a home office so i can deduct that. Any ones I might not be thinking of?

Talk to a qualified Tax attorney-guru before claiming part of your home for your business. As a Real Estate Broker I was ready to claim part of my home and my Tax guy said "don't do it!" If you get audited, which is something like 75% more likely, if you claim part of your home as your "office". Then you have to prove to the IRS that is all you use it for. No "Huddle Time", no personal phone calls, your computer can only be used for business and not any personal use, etc. You have to keep detailed records of your time in "the office" etc. Have a separate phone line, not worth the extra costs. According to him, the chance of being audited and what you get out of it, wasn't worth claiming a "Home Office". Unless you have a totally separate area, like a out building that you use. The laws may have changed in the last few years, that why I say check with someone before you do it.

If you incorporate, try doing in Delaware or Nevada (Vegas). No corporate taxes! I told Blies this. You can use a mail forwarding company. I THINK, not sure, you have to have a corporate meeting in the state once a year. (Go to Delaware, you can gamble in Dover and it's closer! And, you can write it off as a business meeting!) NC will get you on taxes.

When I went to Vegas with my then Fiancée, I stopped in a real estate office and we talked about property. We exchanged business cards. I wrote the entire trip off! So keep receipts!

In this day and age, it's important that you have a great looking web-site and be in the top ten when someone searches for what you do. You could call up my last name, "Herbstreit" and my cousin "Kirk" would have the first 3 sites and I'd have the 4th on Google! This was just be calling up our last name. I also had a great slogan. "The Hardest Working Agent in the Carolinas!" You may think that hooky, but it worked! You could type in "carolina real estate" and my site was in the top 10! Meta tags are REAL important!

"It's not what you know, but who you know!" I missed a listing right across the street at my neighbors house, because they didn't know I was a real estate agent! That taught me a valuable lesson. Tell everyone, from the check out girl at the grocery store to your neighbors what you do. They may not need your services, but they may know someone who does. (Even if it's cleaning up dog poop!) There's an episode of MASH where a wounded guy is selling mutual funds. He bugging everyone in camp. That's what you have to do. I used to start up conversations with people in line sometime. "Hi, You don't know anyone who is selling a house in the next 30 days do you? Or, "Hi, you don't know anyone who is in the market for a new home do you?" I used to go to Teeter and slip my business card into Charlotte Woman and all the real estate magazines! (I would turn to the First Charlotte Real estate page and slip it in there!) LOL. I had a yard sign that read, "This house isn't for sale, but I know of other great homes that are! Call me at xxxxxxxxxxx and my name."

I could write a book on what NOT to do! LOL

ADVERTISE, ADVERTISE, ADVERTISE. In business it's said, Location, location, location, today, because there are so many home based business' ADVERTISING is very important. I'm just starting up a company, Cash4Coins, right? I just ordered bumper stickers, magnetic signs for the Custom Cruiser, business cards, even tote bags. all from Vista Print and saved like 50% off their price. (So they say.) They are cheaper than any sign store! I used to have my real estate web-site on all my cars. www.my name.pointstohomes.biz on my back windshield. People used to stop me in my Corvette and say, "You must be doing good in real estate."

It's late and I will help you in anyway I can.

[Happy Panther]

Cool. Many thanks for the advice.

My home office is pretty separate and it would appear to anyone that it is only an office. Will definitely think about this.

[Johnny Rockets]

Oops you answered cell phone.

Can i deduct all calls or just business?

If I remember correctly when you are doing your taxes you enter in what % of your phone use is for business vs. personal. Then you take that % and apply it to your yearly phone bill. So if your bill was $1,000 for the year and you use your phone for 50% business then $500 would be the write off. I am no tax accountant though, just a guy on the huddle who does his own taxes (wife owns her own business).

Biggest tip I can give you though is to stay organized and document everything (receipts) to avoid headaches down the road.

Good Luck to you...hope you make millions.

[charlotte49er]

I know you said you spent $400 to incorporate, but you didn't say what your business is.

If it has anything at all to do with racing, incorporate in Indianapolis, IN. You don't have to race, you can sell parts to race teams. Indiana & Indianapolis in order to truly make Indy the Racing Capital of the World, has no corp taxes for any racing related industry.

Corp leases you, can write off and upgrade every few years. If you buy, you can only depreciate it for so many years, then you are stuck with it. Lease everything you can, car, computers, furniture, telephones and the service, anything and everything! If your wife/girlfriend helps you, lease here! LOL Do Not personally sign for anything though. If your company goes under, then they will expect you to still pay the lease.

KEEP RECEIPTS! Anytime you go out to dinner with friends, spend some time talking about your work. Wink, wink, nod, nod. You can write off a portion of the dinner. If you have a party, Christmas, Super Bowl, Daytona 500, invite some clients. That's Entertainment costs. Chinese clients in town only want to go to one place, HOOTERS!

[Happy Panther]

I know you said you spent $400 to incorporate, but you didn't say what your business is.

If it has anything at all to do with racing, incorporate in Indianapolis, IN. You don't have to race, you can sell parts to race teams. Indiana & Indianapolis in order to truly make Indy the Racing Capital of the World, has no corp taxes for any racing related industry.

Corp leases you, can write off and upgrade every few years. If you buy, you can only depreciate it for so many years, then you are stuck with it. Lease everything you can, car, computers, furniture, telephones and the service, anything and everything! If your wife/girlfriend helps you, lease here! LOL Do Not personally sign for anything though. If your company goes under, then they will expect you to still pay the lease.

KEEP RECEIPTS! Anytime you go out to dinner with friends, spend some time talking about your work. Wink, wink, nod, nod. You can write off a portion of the dinner. If you have a party, Christmas, Super Bowl, Daytona 500, invite some clients. That's Entertainment costs. Chinese clients in town only want to go to one place, HOOTERS!

Financial consulting. I don't produce anything

[Happy Panther]

good advice on leasing

[Happy Panther]

One more question. Since I have paid taxes this year and all small business expenses are deductible, it would make sense not to skimp on anything i need. like computer, phone, whatever setup costs.

Since I will basically get back every dollar i deduct up to the amount of federal tax...

Is that right?

Yeah I will get a tax accountant...