You will need to select from various types.

The two typical corporations that most CPA's or attorneys will recommend are S and C corporations.

You should keep in mind that every state has different laws for corporations.

What an lawyer may tell someone in California may not be true in Florida.

S Corporation: - Allows for limited liability of owners/officers/directors.

-Typically runs on a calendar year.

- Full disclosure of corporate owners.

- Profits pass through to individual tax return 1040. No tax brackets separate from personal tax brackets apply.

- All profits are taxed even if not distributed.

- State taxes will apply for individuals who are located in a state with an individual state tax.

C Corporation - Allows for limited liability of owners/officers/directors.

- Runs on a fiscal year, which may be designated by board of directors, rather than on a calendar year . - Nevada requires no disclosure of corporate owners.

- Profits are taxed at corporate rates on an 1120 return separate from individual return.

- Profits can be kept as retained earnings.

When this article resumes, I'll go over accounting and taxation needs of a business. Look forward to seeing you then.

This article on STARTING A BUSINESS? is not "professionally" advising you on business matters, or business agreements. If you have any concerns in regards to your business, I would advise consulting an attorney.

© Working at Home Ideas and Information http://working-at-home-ideas-and-information.com/ 269 Portico Aisle Irvine, CA 92606

It takes a lot of time to successfully market and promote a new business. Starting out a new business with expectation of earning a full time income from a part time effort is not very realistic and is likely to lead to disappointment.

If you are planning on starting a home-based business with intention of spending a great deal of time with young children or caring for a sick or elderly family member, a full-time home business (and income) may not be a realistic objective from a time availability standpoint. Try to reconcile your income expectations with amount of time that you have available to devote to starting your home business.

You can expect to experience periods of doubt in early stages of developing your business...did I pick a viable business opportunity?...am I doing right things to develop my business?...when will I start making a profit?, and so on.

A person working at a home based business may also experience occasional periods of feeling isolated...a feeling which is probably brought on by lack of interaction of a work force or office environment.

Whatever type of home based business that you choose to start, you can rest assured that there will be some bumps in road leading to your success. You should expect to experience "two steps forward and one step backward" thing and try to avoid ever-looming temptation to become overly discouraged when you take one of those backward steps. It is very easy to lose sight of obvious fact that as long as you have more steps forward than backward you will eventually get ahead!