Before you start a small business, it is important to know that there are variations between a business and a hobby. What are the variations? The major variation is that when you make losses in a business, it can be removed from the taxes, but when you make losses carrying out your hobby, they are not removed. What the IRS sees as a business is simple. It is any activity that makes profit within three of the previous five tax years. If it doesn't have profits in those periods, then it's not a business.
Start by choosing the name of the business:
A lot of persons feel that their business names are important, and they are not wrong. The name reflects the business; hence it must fit your brand. Write down names and shortlist them. See if those names are available, especially their domain. Whatever domain name that you opt for should be a great match for the business name that you opt got. Try not to be involved in trademark infringement. Ensure that the name you choose doesn't seem like a rip-off of a big brand because it may not be favorable to you. The name shouldn't be foul. It shouldn't be insulting to the culture of the people.
Don't forget to run research on the business you want to be involved in, then make the business a legal entity. Do you have an emergency, and you are wondering how to pay for it? Have you gone to the banks, and family members, yet no luck? Are the banks and other financial institutions turning you down because of no or poor credit rating? Are you tired of having to stand in a long queue before you get cash?
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