First Things First: Set Up a Separate Business
Keep Your Taxes Straight
One of the biggest mistakes business owners make is not getting an LLC that can deduct your personal expenses. If you have a home office, for instance, then you can get a home office deduction. Or, if you own a vehicle that you use solely for business purposes, then you can get a mileage reimbursement.
Without a business, however, you might have a hard time proving that certain expenses are legitimate work expenses. This can be particularly challenging when you have a small business that generates little or no income.
And even though they may be small in terms of monetary value, it’s still important to be able to claim tax deductions for these deductions. If, for example, you do a side business where you sell various items on the Internet, then it’s important to keep clear records of those expenses for future reference.