Looking to reduce your tax liability and keep more money in your pockets? The most effective way to do this is through a small business or a Schedule C business on your 1040 tax return. Now you may be thinking, starting a business is complicated, there’s the start-up cost, other expenses,licenses, and if you actually make a profit then you’re going to pay more tax even though the goal is to pay less tax; doesn’t make much sense at first, does it? That’s okay, the goals of these simple business ideas are to increase your monthly cash flow while decreasing your tax liability and thus earning and saving money simultaneously. If you have a business idea or are interested in starting one of the following ideas, reach out and schedule a consultation call with Olivia. Together you can come up with a plan to reduce your tax liability through your small business.
1. Sell Homemade Goods
Creating and selling your own goods is probably the most strenuous type of small business for those just starting out; however, it can be very rewarding and creating an online shop through etsy or your own website is fairly easy. Some common goods that people create and sell are soaps, jewelry, baked goods and clothing.
2. Direct Sales in a Network or Affiliate Marketing Company
Joining a direct sales company is one of the easiest and cheapest ways to start a small business that qualifies as a Schedule C. Start up costs are inexpensive and usually include a beginners kit with products and materials you need to get started. The network marketing and direct sales industry has grown tremendously since the beginning of 2020 and currently the industry is worth about 200 billion dollars. So make no mistake, there is money and potential to win in this industry with very little personal expense.
3. Profit From Your Ideas & Skills Online
If you have an idea, a way to help others or some kind of special skill you can teach others, the online space is a great place to meet those who need what you have. You could create a course to sell, coach others, or freelance all while working virtually from home.
4. Rideshare & Delivery Services
Uber, Lyft, DoorDash and others are simple and easy services to start and the best part about these types of businesses is that you work when you want to and every mile you drive is worth a $0.56 deduction on your taxes in 2021.
5. Pet Sitting
This small business may not be for everyone but so many people will get enjoyment out of taking care of other people’s pets in their spare time. This is especially easy for college students who may be missing their own pets, it allows for a flexible schedule and is a different approach to networking in the community. This industry, like almost everything else, has transferred to the online world with companies like Rover and Wag, it’s easy to get started.