If you have had a business idea for a product or service and are ready to give it a go, congratulations! Being in business can be rewarding and exciting. There are so many benefits when it comes to being in business (for yourself) and we want to make sure you understand many of the benefits available to business owners.
Please know we understand how starting your own business can seem daunting, especially when you are used to the comfort and predictability of a job. While it is true that being a business owner comes with its own unique set of challenges, there are many benefits of “owning your own.” Below are three main benefits that make business ownership appealing. Consider the following:
- No one wants to be sued! In many cases where a business has been properly established, personal liability can be avoided when the underlying issue was not caused directly by the business owner. For example, proper business ownership could help you avoid personal liability when:
- Bad acts are committed by your employees, customers and associates; Nationally-enforced standards — such as OSHA and FDA, for example — have been taken for granted by your employees;
- Products have not been properly tested;
- Products have not been properly labeled (i.e. Leaving a “peanut-related” ingredient out of the list of ingredients. Peanut allergies are serious!)
- Your company has failed to create rules, instructions or an employee handbook. How many times have you heard “well, I didn’t know”?
- HR and company leadership has ignored social causes and political messaging that is important to people groups (such as #metoo, #blacklivesmatter,#lgbtx etc movements). Regardless of your stance on today’s issues, it would behove you to not take today’s political trends lightly.
- Embezzlement has occurred by an employee. This is self-explanatory. Cheating is never the right answer.
Let’s say you want to order a canister of cookies. Your neighbors recommend two different bakers — one baker has a fully-functional website, lots of social media presence and a brick-and-mortar location across town. The other baker hasn’t registered her business with your state, is nowhere to be found online, and works from her one-bedroom apartment.
Who are you choosing to do business with?
Go with the business owner who is registered with her state, who has the licenses or certifications required by law, and has taken the appropriate legal steps into consideration, so that you don’t get harmed, and that she doesn’t get subpoenaed to attend court.Proper steps legally speak to your professionalism, which is the first step in building trust with consumers. Click To Tweet
One of the biggest benefits of starting a business is probably the last thing you’d consider an advantage, taxes. Did you know tax deductions as a business owner are the gifts that keep on giving? Many business expenditures can be ‘written off’ when filing returns, thus helping many businesses pay for themselves. Here are few expenditures that in some cases may be proper business expenses — and another reason to turn that hobby into a business right away:
- Your vehicle. Those deliveries, lunch meeting trips and convention travels are oftentimes worth it. As long as you have proof of business usage, you may be able to deduct some of your vehicle expenses when you are driving. Keep track of your car-related spending; the IRS standard mileage rate at the time of writing this is 58 cents per mile in the US.
- Wages. While you may no longer be an employee, your workers are! Any time you pay your employees, (salary, per-hour wage, bonuses, commissions or other taxable income) such payment could be a deductible business expense. Stop doing everything by yourself. Go ahead…hire him or her. That hire just might help you operate more efficiently.
- Business property and supplies. From the internet you’re using to read this article, to the seat you’re sitting on, to the room in your home that you use solely for business purposes, what you have spent to run your operation could result in major tax benefits. As long as your property is being used for business ,you may be able to receive tax benefits. Chances are you already use your home, cell phone, and even your WiFi connection for business. Keep your receipts for these things and more and you might be able to claim the benefits that are rightfully yours.
There are many tax benefits for you as a small business owner as you are incurring costs while pursuing a profit in that business. Your 2019 tax refund should be a benefit in itself and should add to the many pluses of starting your own business. Always know, however, it is crucial that you secure the services of a tax professional (CPA, accounting or tax attorney) to ensure that you are approaching tax laws (and deductions) as allowed by the IRS.
While owning your own company does come with a set of challenges, with perseverance and smart choices, you are on your way to success.