Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > General Issues > General Small Business Issues
Register Search Today's Posts Mark Forums Read

Reply
 
Thread Tools
Old 16th February 2005, 06:27 AM   #1
slink
Member
 

Join Date: Feb 2005
Location: indiana
Posts: 6
Default start small business or stay under the table?

Hi everyone, I'm sure this is a very redundant question but I can't find the answer I'm looking for .....
Lets say for example that someone has a side thing making and selling furniture, etc., earning under $5000.00 yearly
What are the benefits of starting a business as opposed to collecting money "under the table"?

please elaborate
thanks

slink is offline   Reply With Quote
Register or log in to remove this ad.
Old 16th February 2005, 07:35 AM   #2
Old Welsh Guy
Moderator
 
Old Welsh Guy's Avatar
 

Join Date: Jun 2004
Location: Wales
Posts: 700
Default

Well the obvious one is that you don't have to worry about the tax man turning up and asking you for back tax!

If your turning over 5k then by being a business you might be better off. You can offset many things against tax, like a % of the area of your house you use, % of motoring costs % of telephone costs electricity etc. And if you get into a negative value with regard tax, you can then offset this loss against the profit made from your day job.

__________________
Old Bald & Stupid, but more than compensated for by being born Welsh.
Google Expert blog - Internet Marketing Consultancy
Old Welsh Guy is offline   Reply With Quote
Old 16th February 2005, 11:15 AM   #3
nsusa
Member
 

Join Date: Feb 2005
Location: Colorado, USA
Posts: 10
Default

From a legal standpoint - make it an official business. From a business standpoint - make it an official business. I also think it is a mind thing. You run a business or you do some work 'under the table'? Run a business and make opportunities work.

Christoph

nsusa is offline   Reply With Quote
Old 16th February 2005, 01:18 PM   #4
hdsol
Member
 

Join Date: Feb 2005
Location: Northeaster USA
Posts: 1
Default

There are more legal problems that can be avoided if you run as a legit business. This can open up a world of new business for you. Many companies don;t or wont do business with somone working under the table. They expect to be able to write off the expense of your services and if the government does an audit you may be asked to explain (and Pay$$$). Keep it legit from the start.

hdsol is offline   Reply With Quote
Old 16th February 2005, 06:58 PM   #5
bragadocchio
VIP Contributor
 
bragadocchio's Avatar
 

Join Date: Jul 2004
Location: Delaware
Posts: 187
Default

It's kind of nice to be able to buy some new expensive tools like a band saw or radial saw and write them off in your taxes as expenses of your business.

__________________
Bill Slawski | SEO by the SEA | "Making the simple complicated is commonplace; making the complicated simple, awesomely simple, that's creativity." ~ Charles Mingus
bragadocchio is offline   Reply With Quote
Reply   

Bookmarks




Thread Tools

Get Updates
RSS Feeds:
RSS Feed for General Small Business Issues RSS for this Category Only: General Small Business Issues

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


Small Business Ideas Forum


 
At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
 
Search Engine Guide
Small business guide to search marketing

 
Small Business Brief
Fetching the Best Small Business Info


Free Links - Free Advertising
Free Guide - Online Directory



Advertise your business here
Contact us for more details!


Semantic Juice
Register now to access free Quick SEO service!


Rocket Lawyer
Sign up for free 7 day trial. Boost your biz!


Buy UPC Codes
Get your products listed online!




All times are GMT -5. The time now is 09:59 AM.


Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy