Today’s recession is causing many lay-offs, and so people are thinking about career moves or home-based businesses. There are some things you need to be aware of if this is in your plans.
A hat tip to writer Joyce Rosenberg of the Associate Press for her article on what people should be aware of if they start a home-based business.
Taxes - Although it is much easier to claim a deduction for a home-based business than it was in years past, you will face different issues, so check with a CPA.
Additional insurance – you need to look at this when operating from home.
Local laws - Don’t violate any local laws. Also check bylaws if you are part of a homeowners’ association or co-op.
Another example that Rosenberg mentions is, “You don’t have to conduct all of your business activities from your home to qualify for the deduction. If you spend your work time visiting customers but do your administrative work such as billing and keeping your books at home, you can claim the deduction.”
One thing many entrepreneurs have discovered is invoice factoring for small business – a simple way to keep cash in reserves when you start working from home. The way it works is that a factor like IFG will look at the creditworthiness of your customers and can fund within as little as 24 hours. IFG does not expect to buy 100 percent of a company’s receivables, and there are no minimum or maximum sales volume requirements. IFG’s professional rates are competitive; each client’s circumstances will vary and may have an impact on the fees.
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