LEGAL BUSINESS SETUP

Yes, there are legal and governmental things you've got to know about and deal with.
Choosing a form of business entity:
Corporations
Sole Proprietorships
General Partnerships
Limited Partnerships
Limited Liability Companies
Go here to learn the differences:
http://www.bizfilings.com/index.asp
Tax Breaks on Small Business!

Suppose you live in a 10-room house and set aside one room exclusively for business use.
You may be able to write off 10% of your utility bills, deduct 10% of home maintenance costs
and even take depreciation deductions based on 10% of your home's value.

However, you must follow the rules carefully if you want to avoid a disallowance.

The IRS has established a two-part test for approving home office deductions, and your
deduction will depend on the amount of time you spend in that office and the relative
importance of the work you do there.

The key question the IRS asks is whether your home office is your "principal" place of
business. If it is, and it's only used for business, you're entitled to home office deductions.
However, you won't be allowed any write-offs if your home office is not your principal place of
business.
To qualify for these deductions, you must show that you spend more business time in your
home office than anywhere else. You also must show that the functions performed in the
home office are the most significant events relative to that business.

If you're a graphic artist, for example, you might work at home but also spend time meeting
clients. As long as the at- home work is the most significant part of your business, you can
qualify for home office deductions by showing that you spend more time working at home than
at other locations.

On the other hand, if you're a consultant who spends time at home doing paperwork but
generally performs services at your clients' premises, you won't be entitled to a home office
deduction. Your on-site work will be considered more important than your at-home work. For
an individual who performs services at customers' job sites, the use of a home office for
management and planning won't be deductible.

Some savvy strategies may help you get the rules on your side. The tax code permits home
office deductions for separate structures. An office in a room above your garage will likely
qualify. Another technique is to set up a separate business, limited to home-based activities.
Then, you can take home office deductions for that business, up to the amount of income
generated by those activities.

For example, suppose you're a consultant who travels to various companies, presenting
seminars. The administrative work you do at home won't qualify for a home office deduction.
However, if you create a separate company to prepare a manual that you sell to your clients,
and do this work from home, the revenues from that company may be offset by home office
deductions.

Keeping good records is always crucial to sustaining a home office deduction. Don't be
reluctant to take the deductions if you're entitled to them. Establishing a home office may also
enable you to take more auto-related deductions. If you have a home office that's your
principal place of business, daily transportation expenses incurred in traveling between your
residence and other work sites are deductible.

According to FindLaw on the web, if a taxpayer's use of a home office qualifies as business
use of the home, the taxpayer can deduct an allocable portion of depreciation, insurance,
rent, repairs, security systems, and utilities and services paid with respect to the home. The
amount deducted is limited to the amount allocable to the home office.

Example: If a taxpayer pays $10,000 total for expenses related to the home and 25% of the
home is used for business purposes then $2,500 of the expenses are deductible. Similarly, if
depreciation on the total structure is $5,000 per year, $1,250 (25%) is deductible. Although
home mortgage interest and real estate taxes are deductible in any case, the amount
attributable to the home office should be reported as an expense for business use of the
home.

You can get more information on deducting your home office expenses by reading IRS
publication titled, Business Use of Your Home. Call 800-829-3676 to order. You can also get
some more tax tips from the IRS Web site (www.irs.ustreas.gov). To hear a tape recorded
message on the subject, call 800-829-4476, and punch in No. 509. Finally, to speak to an IRS
representative, call 800-829-1040.

Recommended Reading:
Copyright Protection for your web site!


Just as a trademark protects a logo and a patent protects an invention, a federal copyright
protects your Web site, literary works and more!

When you value your Web site, source code or music and the hard work and original ideas
that went into it, you need indisputable legal proof that YOU own your work! And that proof is
a Registration Certificate issued by the U.S. Copyright Office.

Until now, getting this essential federal protection was complicated and often required the
hassle and expense of an attorney. Those days are gone!

c-Site eliminates the confusion and complexity from the copyright process. Its step-by-step
wizard and expert assistance guides you through completing the copyright application in just
minutes.  Once completed, simply upload your work. Our team of experts will review it for
accuracy and compliance with federal copyright laws.

Then file it with the U.S. Copyright Office. Upon approval, the Registration Certificate is
mailed directly to you. It's that simple! Click here to learn more.

Do you know the difference between Copywright, Trademarks and Patents?

A Copyright is a form of protection provided to authors of “original works of authorship”,
both published and unpublished. Copyright protects the form of expression rather than the
subject of the expression.


Federal copyright registrations are issued by the U.S. Copyright Office. They give the
copyright owner exclusive rights to reproduce the copyrighted work, to prepare derivative
works, to distribute copies of the work, and to perform and display the work publicly.

A Trademark is a word, name, symbol or device which indicates the source of a product and
distinguishes it from the products of others. A servicemark identifies and distinguishes the
source of a service instead of a product.


Trademarks are issued by the U.S. Patent & Trademark Office. They prevent others from
using a confusingly similar mark, but cannot prevent others from making the same products
or from selling the same products under a clearly different mark.
A Patent is the grant of a property right to an inventor. What is granted is the right to
exclude others from using, offering for sale, selling or importing the invention.

Patents are issued by the U.S. Patent & Trademark Office.


More helpful Business Resources


Business Resources:
1) Tax Reduction Toolkit
How Any Small Business Owner or Self-Employed Person Can Save Thousands In Taxes.



Wholesale Resources
1) Wholesale Electronics And Merchandise
Buy wholesale merchandise at huge discounts. These sources are an eBayer's dream come
true.

2) Authentic Designer Handbags
* Source for Wholesale Designer Handbags at Below Wholesale Prices! *

3) Computer Wholesale Purchase Guide
Buy computers, software, hardware, games and accessories from real wholesale companies,
be a computer reseller!

4) North American Wholesale Co-Op
Access all the top wholesaler catalogs online. Find items to sell on eBay and more! Great
conversions!



Ebay Tools
1) Think Outside Of The Box And Make Money
Solid techniques for selling on eBay. Step-by-step instructions show you how to make money
on ebay.

2) The Silent Sales Machine Hiding On eBay
Automate your online auction income - multiple eBay success strategies.

3) Automatic Digital Delivery On eBay
In Seconds You Can Deliver Your eBook To Your EBAY Customer Quickly, Easily &
Automatically, Without You Even Lifting A Finger!
My Fashion Guru
INTERNET
GLOSSARY
Mentor Program