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Posted: Fri 4 January 2013 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]
Category: Business 101

Being a long time member of Networking Times has its prvilages one of which is that we have access to years of articles by the likes of Mr. Sandy Botkin. For those of you who do not know this man, he is the MLM ers Accountant. Learn about him and if you want to maximise your deductions and stay safe with the IRS learn from him and implement what he teaches.

The following article is replrinted for your benefit with full credit going to the author and the awesomeness which is Networking Times. Peace be with you.

http://www.networkingtimes.com/trainer/articles/trainer.phtml?article_id=2892

 

Why Every Employee Should Consider Having a Side Business

By Sandy Botkin


As a network marketer, you probably already know about this, but here is a succinct and convincing way to

present this idea to a prospect:

 

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 business, you can deduct your losses 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 properly

documented business deductions.

 

*Materially participate* means that you either put in the substantial hours necessary in running

your business or you put in at least 100 hours and more than anyone else, or you work in your

business for at least 500 hours per year.

 

If you were to see who are the multimillionaires in this world, probably 85% of those have businesses.

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 your boss,

which spelled backwards reads S.S.O.B.

 

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 network marketing opportunities that don't require a lot of cash. The beauty of

network marketing is that is comes with a built-in training program and you earn while

you learn!

 

I'll finish up with the following statement my father taught me:
"People get rich doing things others aren't willing to do—and doing them exceedingly well."

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