I’ve been thinking more and more about running the Knetwork as a business. There should be some pretty large advantages especially right now where I’m not making a profit and keep buying more and more domain names (I bought another one last week so watch out). I see two main ways to run the sites, the first is as a “hobby” which has it’s own set of tax rules, the second is a business of some sort. I’ll write more on this later.
To get a better grasp on taxes and tax savings in general I borrowed a book written by Stephen Fishman titled “Lower Taxes in 7 Easy Steps” and it’s something that I would suggest to anyone not just someone wanting to start a business. I’m sure that, like me, you’re already following some of these steps but there may be some things that you can do better or start doing that will really help out your bottom line and inflate that rebate check. Here are Fishman’s 7 Steps:
- Maximize Tax-Free Income – This includes home sales, retirement and college savings accounts, and health savings accounts.
- Take Advantage of Tax Credits
- Defer Taxes
- Maximize Your Tax Deductions
- Reduce your tax rate
- Shift Income to Others
- Take Advantage of Your Filing Status and Tax Exemptions
Some of the information is redundant and some only helpful in certain situations but it’s a good read, an amazing read for a book about taxes, so check it out.