Thread: Business advice
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Old 03-05-2008, 06:09 AM   #4
Ladylavender
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Join Date: Feb 2005
Location: Soddy Daisy, TN
Posts: 733
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You mentioned that you are moving in May -- have you already found a house? Maybe you could try working out of a room in your house. That's not uncommon, and if I'm thinking right, your house could be a tax write off as a business expense if you do it that way.
You cannot claim your whole home as a tax write off for a home business. You can only claim the room or space (in square footage) that you operate your business out of. You can only take a % of the electrical, gas, water (if you use any for your business) phone, fax and other business equipment, especially if available for your personal use. Also, there is a distinct difference (according to the IRS) between a home based business and a "hobby". The criteria for which one applies is based on their definition, not yours or the common public. To have a legitimate business you will need to contact your State offices (can't remember which one) and see what criteria you must meet to have a home based business. You may have to have a tax i.d. # depending on the amount of money you expect or do earn in a month. You will also need to check with the city or county that you are purchasing your new home in, because you may not be allowed to operate a home based business (especially one that will require customer traffic in and out of your home and neighborhood) or there may be rules and regulations you must adhere to if you are going to run the business in that county or city and out of your home.

You may need to apply for a business license in the county or city in which you will be doing business. You will either be required to charge taxes or pay taxes or none depending on where you live and/or where you will be operating your business from.

These are all the legalities you need to consider, because this may help you decide what you want to do or DON'T want to do pending the start up costs.
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Sheila and Sweet Millie Sage and Jasmine Rose

Last edited by Ladylavender; 03-05-2008 at 06:12 AM.
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