Well, it’s official. The second most popular money goal for people in 2009 looks like it is “start a business.” Most popular is “save money.” There is something compelling about starting a business. You get control over your own life. You can’t get laid off. Your business is dependent on you and, right or wrong, you see the fruit of your own actions.
As a CPA and Tax Strategist, my favorite part of starting a new business is the fact that you’re going to get a huge tax advantage when you do. That’s because many of the expenses that you currently have may actually turn into business expenses.
I had a client who made $50,000 per year in a job. He lived hand to mouth. Every day he worried about driving to work because his tires were so bad and his credit cards were maxed out . Then he lost his job.
He found another position right away, for the same amount of money, but this time he was paid as an independent contractor. That’s when I met him. I helped him get the right business structure (back then, it as an S Corporation. Today, I’d probably go with an LLC-S.) and identify all his hidden business deductions.
At the end of the year, he had $10,000 more in his pocket then he did when he was an employee.