Beating The Odds 3 Ways To Ensure Your New Business Is A Success
Below is a MRR and PLR article in category Internet Business -> subcategory Web Hosting.
Beating The Odds: 3 Ways to Ensure Your New Business Succeeds
Starting a new business can be daunting, especially considering that nine out of ten new ventures fail within their first year. However, one out of ten does make it. So, what sets these successful businesses apart? According to JP OBrien, founder and president of KeepMore.net, the key is treating your business like a business. This approach helps you take advantage of tax breaks and deductions, allowing you to keep more of your hard-earned profits. Without tracking your business affairs, you’re setting yourself up for challenges.
Legal Matters
To start your business off right, the first step is incorporation. This move allows you to benefit from various small-business tax advantages. Regardless of how you structure your business, income from it is taxable. As OBrien points out, you won’t receive any tax breaks if you file as a hobby. By law, you must report every dollar you earn to the IRS.
Structuring your business as a legal entity enables you to benefit from tax breaks. It’s a simple process that can save you money in the long run. Services like BizFilings.com or LegalZoom.com can help streamline this process.
Managing Finances
The next critical step is monitoring your cash flow. OBrien advises looking at everyday expenses that may be business-related. These can add up and reduce your tax obligations. Some potential deductions include:
- Home office expenses
- Equipment purchases
- Website maintenance costs
- Business-related auto mileage, which is often overlooked. At nearly forty-five cents per mile, tracking trips for product sourcing, trade shows, or client visits can lead to significant savings.
By keeping an eye on your spending and profits, you can identify what works and what needs improvement.
Protecting Your Business
Lastly, ensure you have documentation to back everything up. In the digital age, most transactions happen online, so it’s crucial to print them out and maintain good records. Keep records for four years?"the current year and the three previous years?"to be prepared for any IRS inquiries. Even if your deductions are legitimate, you need receipts and paperwork to prove it; otherwise, you risk facing back taxes. Proper documentation protects your business.
No matter how new or small your online business is, it’s never too early to treat it professionally. Start keeping detailed records from day one. Getting legal and organized is less intimidating than it seems and can be the difference between success and failure.
You can find the original non-AI version of this article here: Beating The Odds 3 Ways To Ensure Your New Business Is A Success.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.