Why you should have a business: We have two tax systems: one for employees designed to take your wealth and one for business,which is designed to create economic growth. If you have a buisness you can deduect your loses against any form of income as long as you run your business like a business and materially participate in running it.
Moreover, if your self-employed business loss exceeds your income for the year, you can either carry the loss back up to two years, and offset the last two year’s taxes paid to the state and federal government or carry forward all business losses up to 20 years. thus, you never lose a properly documented business deductions.
Materially participate means that you either put in substantilly all the hours necessary in running your business or you put in at least 100 hours and more than anyone else, or you work in your buisness for at least 500 hours per year.
If you were to see who were the multimillionaires in this world, probably 85% of those had buisnesses. I am stunned at how many people work “like dogs” trying to get ahead in their company. Frankly, I would recommend doing enough not to get fired and starting a side business with the extra time. Who knows, you might make enough to leave that business and dump the boss ,which is spelled backwards…
People always ask, “What type of business should I set up.” My answer is to follow your passion. Find what you are good at and master it and learn to market it. There are many proven opportunities through successful franchises and network marketing opportunties that don’t require a lot of cash.
I’ll finish up with the following statement said to me by my father:
“People get rich doing things that others aren’t willing to do and doing it exceedingly well.”
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