Important Legal Facts About Self-Employment and Working From Home

When you work from home there are several things you need to know about the law in order to keep from getting into trouble in the future. You need to be able to manage your finances appropriately, pay any taxes required, and make sure that you are following all IRS and local laws.
 
The first thing to understand is the definition of self-employment. Even though you are selling products for a company or doing work for them, you may not be an employee. If you are paid without taxes being withheld, you are likely an independent contractor. In most cases, you will be told this and made to sign an independent contractor agreement. The independent contractor agreement will come from the other party. If you are not made aware of this fact, remember that you can easily tell if you are a contractor or an employee by how you are paid and whether or not you receive benefits. The IRS has a great worksheet available on their website that will help you determine if you are self-employed by their standards. You will be considered a 1099 candidate.
 
The other thing you need to understand is that you have to pay income taxes on your income even if you don’t own an actual business or you do not have taxes withheld from your pay. This is considered self-employment tax. Typically it is paid quarterly, depending on the amount of your income. Payments throughout the year will save you from having to pay the entire tax amount at the end of the year. The self-employment tax is in addition to individual income taxes. You may want to consider a corporate entity. There are several to chose from such as a LLC, S Corp or C corp. Good Legal or Accounting counsel can help you with which is best for you and your business.
 
Managing your finances will play a huge role in the accuracy of your annual tax preparation. Keeping your business and personal finances separate is essential. You should keep a log of all your expenses and have separate accounts for personal and business expenses. Good record keeping is essential; and will make it much easier to compute income and expenses related to your self-employment.
 
There are many deductions you could miss out on if you do not keep accurate and separate financial records. The IRS has a publication that can help you track your deductible expenses more easily. www.irs.gov.
 
Finally, you need to realize that there are other legal entities to please besides the IRS. If your business is not solely operated on the internet you will likely need to obtain a business license for your state, county or city. You may also be required to charge sales tax on your services or products based on your location. It is best to obtain all of this information from your local small business administration before starting your business to avoid future legal complications.

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Baby Boomers Working Online: How To Become Self-Employed And Make Money While You Work From Home

The Baby Boomer generation has been hit hard by the recent downturn in our economy. Many Baby Boomers, ready to retire, suffered a financial loss when the stock market hit a down-turn. In some cases, 401K funds and retirement accounts lost almost half their value. Baby Boomers, perched on the edge of retirement, have had to re-think their financial futures, and are now working longer than they anticipated; unable to retire without some type of additional income.But, Baby Boomers are a resourceful generation, and many of them are starting secondary careers, rediscovering their Entrepreneurial spirit, and supplementing their retirement pensions while becoming self-employed and working from home. Some Baby Boomers have opted to continue working, while others have decided to retire and supplement their retirement funds with a second career.The World Wide Web has opened a whole new world of self-employment opportunities to anyone wanting to work from home, and retirees are taking full advantage of this phenomenon in order to prop up their depleted 401K accounts. There are over 1.73 Billion people currently online. The internet is transforming many aspects of our lives. It has changed the way people communicate, the way we stay in touch, shop, get information, review products, and it has changed the way companies advertise and market products. Internet marketing has become a multi-million dollar industry. Businesses are advertising online like they used to advertise in print media. For the generation with the entrepreneurial spirit, the internet has quickly become a great opportunity to become self-employed, work from home and earn money, either a primary source of income or as supplemental income for retired individuals.If you are currently a retired Baby Boomer and you are looking for a way to supplement retirement funds, or if you are a Baby Boomer who has decided not to retire yet because of financial constraints, you may want to seriously consider a second career working online from home. The world of internet marketing needs you!Working online from home is the perfect opportunity to earn money and have a career while working from home. Having sufficient funds to retire comfortably need not be a pipe-dream. You can earn a substantial secondary income as a self-employed home-based business owner. There are many programs being advertised online for people who want to learn internet marketing. Some of these programs are in excess of $30,00.00 to purchase. However, some of these programs are being advertised at under $500.00. It is not necessary to purchase the most expensive “franchise”, nor will you learn everything you need to know for a couple of hundred dollars. A great internet marketing program should cost you less than $3,000.00, which is a very small investment for the opportunity to have your own business. Research any internet marketing program thoroughly, and do not fall for promises of “instant wealth.” You are Baby Boomers. You know it takes hard work and dedication to any endeavor for it to become profitable.Supplementing your retirement income and your shrinking 401K doesn’t have to be difficult. Earning money and starting a new career working online from home can be lucrative and interesting!

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