Computer Businesses That You Can Operate From Home

There are many work-from-home opportunities out there, but in light of the recent changes to global economy, you may want to create your own. There are many options available for those of you willing to brave the small business world. From simple resume writing services to more complicated software programming businesses, many home-based computer businesses can be forged.

Here are some ideas:

• Become an answering service
• Be someone else’s bookkeeper
• Become an Affilliate, Sales Representative, or just plain telemarketer
• Set up your own spamming service
• eBay reseller
• Amazon reseller
• Create an Avon/Mary Kay/Whatever website that your friends and family can order from.
• Publisher of software, e-books, etc.
• Blogger
• Coupon Newspaper Publishing
• Graphics Artist
• Article Writer
• IT / Business Consultant
• Income Tax Preparer
• A+ Certified Computer Technician and Repair Business
• Internet Marketing Service
• Secretary or Virtual Assistant Home Based Business

For all of these, you will need a computer, printer, internet connection, and some time and effort. Niche markets are often the most profitable, and and internet auctions along with sites like Amazon.com seem to be the most reliable. You must find your own cocktail.

Associated Content is both a good website for starting an online writing business and researching ideas about home based computer businesses. Honest, objective opinions not tailored to rob you of your money can be found here. Just search Associated Content with terms like home-based computer business, work at home, make money online, or make money with my computer. Editors here are required to remove spam like articles, and you won’t encounter too many links to squeeze pages requiring investments which can make Google searches using the same terms tiresome. e-How is also a great, unbiased source for how-to articles on home based businesses and work from home opportunities as well as EZine articles.

Finally, it is best to start out small. Large investment should probably come after experience and testing out your idea. This is especially true of auctions and anything else that requires an investment. Investing in something that is not tangible might not be a smart idea, either. Make sure that there is some kind of guarantee before investing more money than you can afford to lose. Keep in mind that may not be possible or realistic to part with all one’s stock quickly. Items may take time to sell, and often profits are barely enough to cover fees and expenses if you’re not careful. Good Luck!

Technorati Tags: computer based home business,work from home,work online,associated content,ehow writing,make money online,how to start a business

Starting a Business - What you should know

Starting a business can be overwhelming enough trying to get up and running but when you think about all the tax requirements, your cup may runneth over. Here is what you must know in order to start your own business on the right foot and avoid paying penalties and interest which can cost more than paying an accountant to do things right the first time. 

WHAT FORM OF BUSINESS SHOULD YOU SET UP WHEN STARTING YOUR BUSINESS? 

There are several different options including a sole proprietorship, partnership, corporation, S corporation or limited liability company. In general a sole proprietorship works fine if you are very small, not too profitable and aren’t concerned about legal liability issues. A partnership is like being married to the other partners. If you aren’t that cozy with them, you may want to set up another type of entity. Corporations are best suited for business owners who want personal legal protection and have profit available beyond what they will need for their personal use. See http://www.dgoodmancpa.com/smallbusinessretirementplan.htm for an example of what you can do with that available profit tax deferred until retirement. S Corporations are best when you are operating at a loss and want business owner legal protection. Limited liability companies will protect the business owner from personal legal liability and, if structured properly, can be a partnership, corporation or owner for federal income tax purposes. 

DO YOU NEED AN EMPLOYER IDENTIFICATION NUMBER (EIN) WHEN YOU START YOUR OWN BUSINESS? 

You need an employer identification number if you have employees, have a qualified retirement plan, operate as a corporation or a partnership, or need to file employment or excise tax returns. You do not need an employer identification number if you are a sole proprietor and don’t meet any of the requirements above. 

WHAT METHOD CAN YOU USE TO ACCOUNT FOR YOUR INCOME AND EXPENSES WHEN YOU START YOUR SMALL BUSINESS? 

The two most common methods are cash and accrual. The cash method in general allows you to report income and expenses in the tax year you receive it. The accrual method in general allows you to report income and expenses in the tax year you earn or incur it even if you haven’t received payment or paid it yet. 

WHAT KINDS OF FEDERAL TAXES WILL YOU OWE WHEN STARTING A BUSINESS? 

All businesses must file a return. The form used depends on what form of business you set up when starting your business. The federal income tax is a pay-as-you-go tax. In general you must pay the tax as you earn or receive income during the year to avoid penalties and interest if your tax liability for the year exceeds $1,000 including self employment tax for sole proprietors, partners and S corporation shareholders. Corporations should make estimated quarterly payments if they expect to owe $500 for the year. Estimated tax payments are due quarterly. Penalties and interest can be hefty so you should make sure you comply in order to avoid wasting money on IRS penalties. 

WHAT TAXES ARE DUE IF YOU HAVE EMPLOYEES IN YOUR SMALL BUSINESS? 

Your small business must pay social security and Medicare taxes, federal income tax withholding, federal unemployment tax along with your state and local income taxes. The associated tax returns for reporting these taxes are in general filed quarterly. Your business is entrusted to pay these taxes on behalf of your employees and not only do you have penalties and interest that you will pay for not filing them timely but can also be committing a crime due to the fiduciary responsibility. You need to be sure you know what you are doing here as the consequences could be costly. 

WHAT RECORDS SHOULD YOU KEEP WHEN YOU START YOUR BUSINESS? 

Except in a few cases, the law does not require any specific kinds of records. The most important thing to ask yourself is can you go back to all of the original receipts from the number on your return. If you were to be asked by an IRS agent to provide all the details of a certain number on your return, and you can not do that, you will be at his whim on whether he will allow that deduction. An efficient accounting system with a solid audit trail which has been reconciled is the safest way to be sure you have done this. 

These are just some questions you may have regarding starting your new business. If you have more, e-mail me at dianne@dgoodmancpa.com and I will help you muddle through the tax and business issues you may have. After all, those of us that have our own business know it’s the only way to go but getting up and running can be a bit of a challenge. 

This article was intended to provide general information about starting a business. It does not contain all the rules and exceptions that may apply to your situation. If you have further questions regarding starting a small business, I can be reached at www.dgoodmancpa.com. 

Coming Soon - Year End Tax Planning and Preparation 



CONTACT INFORMATION: 

Dianne Goodman, CPA 
Comprehensive Small Business Solutions, PC 
505 323-2307 
1 866-531-3035 toll free 
http://www.dgoodmancpa.com 

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About the author:
About the Author 

Dianne Goodman, CPA –Specializes in servicing Small Businesses and Individuals. Visitwww.dgoodmancpa.comfor relevant and current information on a variety of financial and tax issues focusing on small businesses and individuals or call at 1-866-531-3035. 


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