Flexible hours? Unlimited income potential? Tax benefits? More time with your family? If this sounds good to you, you may want to consider joining the ranks of the growing number of entrepreneurs who are starting businesses and creating wealth from home.
The Internet has also taken this industry to another level. Distributors are now able to manage their business from a virtual office powered by the technology that the parent company manages.
Filing your business as an Limited Liability Corporation (LLC) instead of a DBA (Doing Business As) or sole proprietorship? An LLC offers:
- Limited liability for the personal assets of of business owner(s)
- Capital may be raised more easily
- Establish more credibility with business partners (vendors, employees, customers)
- Avoid double taxation (if you choose not to be taxed as a corporation)
Check out LegalZoom for more in-depth information)
Training is integral to network marketing. There are weekly meetings, conference calls, as well as online training. You may find that as you become more successful with your company and are seen as a example to others, you may be called upon more to conduct meetings and support your team in their efforts. By successfully leveraging the efforts of your team and training them to do the same, you can obtain the financial independence. Be coachable and follow the systems that are in place. Many networkers join an established company and attempt to reinvent the wheel by coming up with a "better" way of doing things. Why create more work for yourself? Do
Business Structure and Taxes
How will you structure your small business? Will you choose a sole proprietorship? Limited Liability Corporation (LLC)? There are advantages and disadvantages for all types. The web site www.legalzoom.com is an excellent resource for learning about the
There are tax advantages to starting a business. Maintaining accurate records is important which includes keeping receipts of all business expenses. As an independent distributor, you are responsible for paying your own taxes so you may want to consult a financial planner or seek tax advice for this purpose. Managing a direct distributorship has become easier. In most cases, you login to your virtual office where you can print needed documents, order marketing materials and products, participate in online training courses and track all activity.
A computer with an Internet connection and a printer would serve your basic needs. As your business grows, so will your calendar. An appointment book or planner would be a wise purchase. Microsoft Outlook is a useful tool for contact and appointment management and can be synched up to a Blackberry device so that you won't lose track of important numbers and dates. Goal setting and effective time management are a network marketer's best friends!
If you are working from home, you may be able to deduct expenses for the use of your home for business purposes. This may include mortgage interest, utilities, repairs, as well as depreciation. This deduction applies to renters and homeowners, as well as various types of dwellings - homes, apartments and mobile homes.
1. Regular and Exclusive Use - This must be regular or ongoing use of a part of your home for your business.
2. Principal Place of Your Business - If you conduct part of your business from your principle residence (for example, you might meeti clients at your home but have an office set up elsewhere), you are able to to deduct a percentage of your home devoted to your business.
For a detailed explanation of these deductions for a home-based business, refer to Business Use of Your Home (IRS Publication 587).
