The success of your business depends on how well you manage it. Most home-based businesses are sole proprietorships, but talk to an attorney to make sure that type is right for you. Next, set up an effective record-keeping system. If this is one area that leaves you baffled or bored, plan now how you will cope. Don't forget taxes.
Significant savings are available to home-based business owners.
Every purchase and transaction you make has tax implications. However, you need to invest time, money and energy in maintaining good records and keeping current on tax law changes to ensure that you operate within the law. Once again, talk to your attorney and your accountant to find out your obligations and benefits. If you do not have an attorney or accountant, remember that the IRS offers free seminars to help small business owners. Insurance is also an important consideration.