I know many people who have had great ideas and made a bit of cash on the side, but their fear of screwing something up, taxes, and other complexities kept them from stepping up to the next level. (My accountant and other professional associates have helped me tremendously…I will try to impart some of that knowledge to you.)

Believe me when I say that creating a birthstone bracelet or any other piece of handmade beaded jewelry is a snap compared to dealing with business formation and getting all of your accounting ducks in a row…but doing business the right way is not that difficult.

Here are a couple of the questions that I repeatedly hear from people looking to start a business. I will answer each one of these to the best of my ability and hopefully show you that this is easier than you can imagine. These answers will be based on tax ramifications only, not from a perspective of asset protection.

• Do I really need to start a business?
• I don’t have that much in sales, so why should I bother?
• Do I need a lawyer to form a corporation?
• What kind of corporation do I form?
• Why don’t I just run all of my business through my own social security number?

The first and last questions are very similar, and have a similar answer.

The short answer is…yes, I would form my company even though I don’t have a lot of sales just yet. It isn’t that expensive. Actually, it is surprisingly cheap to start your company. And the fact is, the IRS doesn’t look as closely at a corporation’s taxes as it does individual people who are running a business through their own social security number (which is basically a sole proprietorship). (That came directly from my accountant.) Even though we are allowed to take legitimate deductions, corporations seem to have more leeway in taking their deductions.

The next question that follows up is how do I form a corporation? Do I need a lawyer? The answer is maybe, it depends on you. If you want to be totally hands off and have a lot of money for a lawyer, go ahead and hire a lawyer to form your company.

If you want to start a company, but don’t want to learn how, there are companies out there “that were formed by top attorneys” who can take care of wills, businesses, etc. (I know you have seen the commercials. I used them the first time I formed a company.)

If you are a bit of a ‘go getter’, you don’t need a lawyer. You just need to spend about 30 minutes reading online on what paperwork to fill out. I ran downtown and started my S-corp for a whole $90. Your states may vary, but I think you see my point.

Finally, what kind of corporation do I form? You have a few options here. You can for form a C corp, an S corp, or an LLC. I don’t have a problem with an LLC, it has its purposes…but I would swear that too many people use them the wrong way. For one, you need a second person on the paperwork when you form the company. If you cheat on this one and wind up before a judge for whatever reason regarding your business, all of the benefits of the LLC can be thrown out and they may view you as a sole proprietorship…which is a scary proposition. Taxes on a sole proprietorship are insanely expensive if you make too much money. And another strike in my book against the LLC, whatever money you make in the company rolls up to your Schedule C form on your 1040 when it comes tax time. The schedule C is the number one most audited form by the IRS…so if there are other options, why would you paint a bullseye on your back?

My suggestion is to go with either a C-corp or an S-corp. Your account can help you really decide which one is best for you. These corporations can pay for your medical insurance, doctor visits, company car, etc. The benefits can be endless, but the main thing is to legally and ethically take all the deductions you can under the tax law and get your taxable income to an absolute minimum. I don’t mind paying my fair share in taxes, but please don’t harm the golden goose.

And one more thing about the taxes…you need to familiarize yourself with deductions that pertain to your business. Your accountant is probably a genius, but there is so much tax code that no one is that good. Ask questions, and get real answers. It’s the best way to save yourself money…no matter if your business is a retail store, an engineering company, or even a beaded jewelry business online. We all fight the same fight every year on April 15th…

Technorati Tags: birthstone bracelet, handmade beaded jewelry, start a business, taxes

Welcome to my first blog post about everything from an elegant birthstone bracelet to matching birthstone necklaces to various beaded jewelry designs. Most of the jewelry here is just a touch different than the rest that is out there…maybe even a bit eclectic.

My little trek into the world of handcrafted beaded jewelry started out as just fun for me. And over the past couple of years, I have made a lot of beaded jewelry necklaces and mommy bracelets for my friends and family. (Plus I have sold a fair number of pieces…and many of my customers continue to return time and time again.)

I worked with a lot of materials that I considered to be inferior in making my first pieces. I quickly moved up to Swarovski crystals, semi-precious stones, sterling silver, and 14k gold (both filled and solid). I know the difference, but I want everyone to rest assured that these are good quality pieces. My reputation is important to me. I want nothing more than you to be totally thrilled with what I offer.

I have standard pieces that are excellent quality. They are the most popular and everyone seems to really like them. I also have unique designs that I make on occasion that truly 100%, spur of the moment, one off creations. I will make sure those get a special highlight.

And for those of you who join my mailing list, I will give you first crack at my unique creations. I appreciate your loyalty to me, and I will reward you with first looks and the option to buy at a discounted price before the pieces go on the website for everyone to see.

And ladies, this might be one of those websites that you bookmark and drop the subtle hint to your significant other when you are looking at a cute birthstone bracelet or something else that catches your eye. (There is nothing better than a ‘surprise gift’ from someone…especially when you put them up to it!)

Thanks again for stopping by…and don’t forget to sign up for the mailing list. I will always have something for sale and I would like to keep everyone informed. Not to mention the immediate discounts for being ‘subscribed’ members.

See you soon.

Technorati Tags: beaded jewelry, birthstone bracelet, mommy bracelet, swarovski crystals