Three Reasons to Run a Small Business
Three Reasons to Run a Small Business – This article will cover three good reasons to run a small business and since these three reasons are the most common I am sure many people will see them as nothing but good reasons to become a business. However, one of the not so good reasons is to pay the “fees” of running your own business; or more appropriately “costs” of running your own business. Many people get caught up in the negatives of owning a business versus working for a business. However, most people can benefit greatly from the tax savings that owning a business can provide. This article will cover some of the basic tax benefits of owning a business and the three best reasons to run a small business.
1. Running a business allows you to deduct many things that your employees can’t.
Let’s face it, school isn’t very expensive and your time isn’t very free but you still have to pay for the cost of educating yourself so you can do your job. You’ll not only pay the tuition for your children, but there are the costs for their clothes, equipment, supplies, and tuition. Then there is the 401K that you will use for retirement but since the majority of people don’t have enough saved up for retirement, you also have to pay into an IRA, a Roth IRA, or a Traditional IRA. Then there are Health Insurance Premiums and Ability to Russ write coverage. You need to take your health insurance premiums (all if you have a job) out of your paycheck in order to keep the value from increasing. And on top of all of that, you pay income tax on your net profits every year even if you do not have a business. Maybe using all of these things could be better spent on something else in your business.
These “costs of business” may be deducted from your business’ net profits which can provide you with the additional tax savings you can claim with your business.
2. Running a business may provide a new employee with the opportunity they require to qualify for more than just a job.
Every business has employees and each business has a career path. For example, the person who comes to our company may not currently be a Chief Executive Officer, but may want to get into marketing, or management and possibly even become a Managing Director. There may be other skills that will be required to obtain your new job, but having a person who has the skills required to help you improve will certainly pull every weight.
3. Running a business will help you and your family to become more productive.
It is difficult to become more productive with fewer people. But when you have a business consisting of management, sales, marketing, and other support staff, you can be sure that these employees will work harder. While they are getting the work done, you can be sure that they are busting out the improvements to increase productivity. When you work for yourself you may spend much time on not only boosting your revenue but you can also do more important than working in the shop.
Let’s wrap up this article and I do encourage you to read the rest to make sure you understand the intricacies of this subject. However, I trust your basic understanding of this subject will help you decide if making this your life’s work is a great challenge or not.
