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Lindy · 08-31-2006, 10:25 PM

I come from a whole family of small business people. I have a brother, (contractor) another brother, (well driller) a sister, (fast food franchise) a Dad, (hardware) an uncle, (turkey breeder) a Grandma, (boutique soap maker) a great-uncle, (ranching-investing) cousins, (auto body shop, violin maker, gunsmith, Toyota dealer, baker---and I've probably missed some.)
They all got into their own businesses because they had a passion for something, and thought they could provide goods and or services that someone else needed--or fill a need that no one else was filling. I can't imagine someone being passionate about soap--but my Grandma is. I know nothing about drilling wells, but my brother can find water where there isn't any, and in Western Kansas that is a very useful skill!

So I think that if you want to start a dance studio because you think you're the best damn belly dance teacher around, and you've got A MISSION to show the world (or your locale) how to belly dance, and you're pissed because there's no place around to buy finger cymbals, shoes, and veils, then those are great reasons to start a business.

Starting a business because of the tax deductions just seems wrong-headed to me.

I hear regular complaints from my business owning relatives about the pain-in-the-butt record keeping, govt. reports, OSHA reports, paperwork, sales tax, withholding tax, unemployment tax, hazardous waste tax, zoning problems, etc. What you really should want, is not for your business to run at a loss, but for it to make so much money that you don't have to work for someone else. My sister works her little butt off, but makes well over 100k with her Taco Johns, which is not bad for a college droupout in a small town.
The IRS frowns on businesses that are really just hobbies used to create tax deductions, but I don't think you have to show a profit in a certain time frame. You must, however, be able to demonstrate (through your business practices) that your intent is to make a profit (so that you can PAY TAXES.)

Lindy

O/T--Maybe the best way to cut down on your taxes would be to vote for people who won't spend as much of your money.

08-31-2006, 10:25 PM	#10 (permalink)
Lindy Junkie	I come from a whole family of small business people. I have a brother, (contractor) another brother, (well driller) a sister, (fast food franchise) a Dad, (hardware) an uncle, (turkey breeder) a Grandma, (boutique soap maker) a great-uncle, (ranching-investing) cousins, (auto body shop, violin maker, gunsmith, Toyota dealer, baker---and I've probably missed some.) They all got into their own businesses because they had a passion for something, and thought they could provide goods and or services that someone else needed--or fill a need that no one else was filling. I can't imagine someone being passionate about soap--but my Grandma is. I know nothing about drilling wells, but my brother can find water where there isn't any, and in Western Kansas that is a very useful skill! So I think that if you want to start a dance studio because you think you're the best damn belly dance teacher around, and you've got A MISSION to show the world (or your locale) how to belly dance, and you're pissed because there's no place around to buy finger cymbals, shoes, and veils, then those are great reasons to start a business. Starting a business because of the tax deductions just seems wrong-headed to me. I hear regular complaints from my business owning relatives about the pain-in-the-butt record keeping, govt. reports, OSHA reports, paperwork, sales tax, withholding tax, unemployment tax, hazardous waste tax, zoning problems, etc. What you really should want, is not for your business to run at a loss, but for it to make so much money that you don't have to work for someone else. My sister works her little butt off, but makes well over 100k with her Taco Johns, which is not bad for a college droupout in a small town. The IRS frowns on businesses that are really just hobbies used to create tax deductions, but I don't think you have to show a profit in a certain time frame. You must, however, be able to demonstrate (through your business practices) that your intent is to make a profit (so that you can PAY TAXES.) Lindy O/T--Maybe the best way to cut down on your taxes would be to vote for people who won't spend as much of your money.