Cliff Sullivan ⋅ Largo , FL Internal Revenue Service ⋅ 50 years experience

All your previous answers are on the money.
I'm retired from the IRS and I can tell you to call 1-800-829-1040 talk to a business specialist.
Check www.irs.gov for everything you need to know about paying business and self employment Federal taxes. Most SCORE Chapters offer no cost or low cost business workshops on many important business subjects. You can also get an on-line SCORE mentor at www.score.org, as well as many free business resources...click on Veterans Fast Launch for details about that program. Our chapter and the South Palm Beach Chapters have a non-profit which has raised funds which we can offer to qualified returning Iraq and Afghanistan Veterans,Spouses,Widows, and Children. We'll be hosting a Veterans Expo Oct 6,2012 at the St. Petersburg Marriott, 12600 Roosevelt Blvd, St. Petersburg, FL 9AM to 4PM, Free Admission.

April Travis ⋅ San Antonio , TX U.S. Army, Sergeant ⋅ 10 years served

Hello Charles:

First of all, thanks for taking time out of your busy schedule to answer my question.

You started a store out of your home? Wow, really. See, that's what I'm talking about. I have some ideas on how I want my virtual home based office to prosper myself.

I will end now, but what an amazing story you have there.

Regards,

April

Charles McGrue ⋅ U.S. Army Reserve, Captain ⋅ 21 years served

I actually started a store out of my home until I then acquired a store front. There are definitely some tax incentives, but be sure to make sure you have a designated area for your business, and that is all you do there. It makes life easier that way. If you are able to have a room solely for your business, that helps out tremendously. As Robert and Harry have stated, you should definitely look into those references mentioned, and unless you are money savvy, get yourself a quality CPA. Typically you can manage your own books and let them do your taxes, or even just review your taxes to make sure you got everything you deserve.

Charles

Harry Rakfeldt ⋅ Belfair , WA AMSOIL Synthetic Lubricants and related products ⋅ 38 years experience

Hello April,

Glad to hear you are interested in having a business, and home-based, too! I'm a retired Navy veteran and have an independent dealership that I operate from home. You have questions, and I may have some of the answers. Tax deductions - certainly a benefit of being a business owner. You are entitled to all legal deductions of operating your business. Several simple examples: I have a separate phone line dedicated to the business (and it includes a listing in the Yellow Pages); all business mileage at the rate set by the IRS, currently 55.5 cents per mile; your dedicated home office space is deductible, and the list goes on.
The IRS has a guide for starting a small business that will be helpful; go to
http://www.irs.gov/businesses/small/index.html.
I'd be happy to answer questions. If interested, you can contact me at hrakfeldt@gmail.com.
"You miss 100% of the shots not taken." Wayne Gretzky

Robert Buchanan ⋅ Hensley , AR URS ⋅ 38 years experience

April, Thank you for serving!!

I would suggest you visit your local SBA office and set up an appointment with an SCORE mentor.

A page that you should look at is: http://www.va.gov/OSDBU/about/pdf/veterans-entreprebeurship-portal.pdf this is packed with sites and informations for veterans starting a business.

You do need to do some kind of DBA (Doing Business As) with your Secretary of State but you do need to decide on your corporate structure before you do that. I have no idea where you are in the process but it would probably good to set it up initially as an LLC you can always go up from there to an S Corp and ultimately a C Corp but it is very difficult to go back down. The structure is also important as you become more successful and need to have some asset protection.

Good Luck!