Epi 5: 6 Tax Tips For Starting A New Business

Today our show is all about taxes and new business startups. 

I see alot of people making mistakes when they start a new business. 

Here is a listing of the tax tips that are talked about during the show. 

1.) Business is not a Hobby - There most be a profit motive for you to actually be in business. Many times people are actually run things as a hobby, having fun but not really operating as a business

2.) Picking the Right Business Entity/Structure for your business. Many people are promoting LLCs and Corporations and sadly people spend money to create LLCs and Corporations with out truly understanding what is required to keep them in good order. 

3.) Bookkeeping. This is a small business owners kryptonite. There is lots of money lost or unrealized for the lack of having a good bookkeeping system. 

4.) Understand your Tax responsibilities. Many time people dont know when filing deadlines are potentially how much money they may need to pay in taxes so most of these businesses are doomed before they start. 

5.) Truly understanding what a business expense. Many times people think they can do a tax write off on absolutely every thing they spend money on in there personal lives.