1. Get a good CPA. My CPA has been instrumental in the planning process. He has also became a business partner. He or she will be a valuable resource in telling you what you can and cannot write off through the year.

2. Consider seperate accounts. When you are in charge of paying your quarterly tax it made a whole lot more sense to have a seperate tax account in addition to a checking and savings. Currently we set aside 35% each check to make sure we have enough. I’m curious to see next week how we’ve done this year.

3. Save your receipts and keep logs. We save everything and put in a tax file. Also, I keep a mileage log of everywhere I go that is business related.

That’s just a few. I’ll be soon writing a post on everything I learned in my first year. Good luck!

Int’l Freebies: It’s not as high paying as my current job but I’m determined to make it provide a comfortable living one day!

DJ: Wow great advices. I especially need to look into the tax situation. Thanks for reminding me again.

1. Your bank account should be a business account if you create a corp (LLC or S-Corp), otherwise it can be a DBA (doing business as). All in and out funds need to go through this account.
2. Consider getting a business CC with cash back for typical biz expenses.
3. Set up a separate accounting program on your office computer to track cash flow.
4. You may need to run a fictitious name ad in the local paper to use your MoneyNing name as a legitmate business.
5. Your county and/or city may require a business license to have a home office. And some will require you to get the permission of your neighbors, and/or certify that you will not have foot traffic to your home.
6. Your state may require a sales tax certificate to collect and submit taxes collected on any sales. Each state has different requirements on what needs to be reported. Even though you are internet based, there may still be things you need to collect tax on; be sure you are clear on this.
7. Good advice about the home office, but keep in mind it must be used exclusively for the biz; no personal activities in there. That goes for the computer, phone, files, fax, etc. You may want a separate phone for biz only, cell or landline.
8. Get a separate PO Box for biz mail.
9. Register with the IRS to pay your quarterly income taxes, Fed, SocSec, Medicare. If you are DBA, you can use your SSN, and if low income they likely will set you up for annual reporting.
10. Create an expense log to track all biz related activities, like travel, meetings, mileage on car for biz use, etc. Check to see what can be used for tax deductions.

Best of luck, but be sure to cover all the bases.

I do have a specific space but it’s part of the living room so I don’t think I can get any deduction. It is also a very small space so I’m not sure if it’s worth the potential hassle of audits etc etc.

Zac: I will look into Schwab. I might get an ING online checking account since I already have a savings with them, or even an etrade one since they are all similar (less branches, more interest).

Erica: Thanks for another vote for schwab! I am not really comfortable with opening a WaMu savings account with all the talk of bankruptcy so I will probably go with other options.

Jumbo: It’s funny you mention workspace because my internet is acting weird lately!!!

I will be sure to think of a good schedule. I know what you mean about distractions

Ms: How do people use the letters of recommendations? In the past when I’ve asked, I was told to essentially write it up myself Do those work and how do they use it?

Katie: I’m okay with computers and yes I do have a backup computer if things really turn south for a couple days.

Socializing will be tough and I plan to run in the morning and to start off. Hopefully I will find a way to keep myself sane! I play golf also so I plan to go once a week to a golf course so at least I’m interacting and doing something other than typing but that might become pricey.

1) Not sure how tech savvy you are or what your current set-up is, but consider having two computers. It’s just plain paralyzing to your business when a trojan locks you out or the motherboard goes up in flames.

2) Make sure you work some social time into your daily schedule (coffee or jogging with friends, that sort of thing). Working from home is very isolating, and you might find yourself talking your wife’s ear off the moment she comes home from work because you haven’t had human contact all day. It can also lead to depression if you have those tendencies (I have two friends who day-trade, this is huge for them).

- Katie

If you can, ask for general letters of recommendation. These are always good to have. They are good to show people who may want you as a consultant or if you find that you’ll need to supplement with a temporary part-time job.

Also consider a local credit union. They are often part of large branch ATM networks and tend to have better deals than many banks for the checking accounts.

Make sure you have a schedule. When working for yourself, distractions come way too easy.