by KristinOhio » Fri Feb 17, 2006 3:32 pm
Well, if you keep good records -- having a 1099 from your direct sales company can be a lifesaver for your family's taxes!!
First of all, keep track of everything you pay for. Mileage (even to run to the post office to pick up stamps), product, food you pay for your Open House, etc. ANYTHING and EVERYTHING!!!
Next, figure out how much you use your online service, cell phone, etc. for business. You can deduct that percentage from your bills and write it off on taxes.
If you're rolling in the cash (more than $1,000) per month, then set aside approximately 35% of your paycheck for taxes. That's a generous amount, but at least you'll be safe.
Otherwise, don't worry. I've heard that some people open small businesses just for the tax write-offs. My business has definately helped our bottom line the past two years.
Good luck and enjoy your business!!!!