LOCATE YOUR HOME BASE
According to the U.S. Census Bureau, 53% of small businesses operate from the owner’s home. Channel the money you save on office space into operations by investing in tools or resources that will help you do your job better without the overhead. If you need a professional office down the road, you can always rent a co-working space.
KNOW YOUR TAX BREAKS
If you do end up working out of your home, you probably can write off some expenses on your taxes. The same goes for using your car for work — you might be able to write off mileage. Keep track of all your receipts as you get started, and read up on the IRS’s rules for self-employment taxes.
GET THAT MONEY
Consider using crowdfunding sites to raise funds. If 1,000 people donate $20 to your future T-shirt design company, that’s $20,000 without taking out a loan at the bank. Use your personal and business social media networks to spread the word.
CHOOSE YOUR STRUCTURE
What makes a business a corporation? What is a limited liability company (LLC)? If you are screenprinting concert posters all alone from home, you’ll likely register as a sole proprietorship. Part of a co-op working in a shared space? That is a cooperative business structure. How your business operates, how many owners are involved, and whether you have investors will directly impact your business tax structure.