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Some persons resist
idea of incorporating themselves because
tax savings may not justify
added costs of incorporation, annual minutes, and extra tax returns. However, incorporation gives advantages that go far beyond tax savings.
Insurance may give you some protection against loss. However, you may suffer business losses and lawsuits that may not be covered. For extra protection, consider incorporating yourself. The limited liability of your own corporation alone may justify
additional cost and complexity.
Corporations may also be used for income-splitting with your family, as well as estate planning and retirement planning objectives. Additionally, corporations lend some credibility to smaller businesses and may enhance your image and prestige in
eyes of clients or suppliers.
Lower corporate tax rates will generally apply on small business income. Even in loss years, wages can be paid by
corporation to you so that you may utilize personal tax credits available. If unincorporated, these credits might be lost forever. The now larger corporate losses can be carried forward to future (hopefully more profitable) years.
A full analysis of
advantages and disadvantages of incorporation is beyond
scope of this report. However, being incorporated may give you more flexibility and advantages than you originally anticipated. Certainly, it is not prudent to reject it as an option simply because it is more complicated and costly. In fact, it may be one of
best investments you ever made.
Popular Misconception #4: ------------------------- "I really need an office out. ----------------------------- Being home-based makes me look amateur!" ---------------------------------------- Is A Home Office REALLY Professional? -------------------------------------
Many times small business persons make
mistake of generating unnecessary overhead in order to impress clients and prospects. Often this attitude leads to escalating debt and business failure. One such example is getting an impressive, but expensive, commercial office space.
Customers aren't stupid. They can see when such outside space is necessary or advantageous for them. They can also see when it is a waste of money and designed to fuel your ego. What matters most to clients is whether they are getting cost-effective results or not. If your product or service delivers such excellent value, your customers will be impressed and come back. In contrast, if one allows his ego to get in
way of satisfying
customers' needs, they will go elsewhere.
With
move to telecommuting, downsizing, networked communications, and home-based businesses, operating from your home office is actually smart and trendy. Can you think of a more appropriate location for a consulting firm specializing in home-based businesses? They of all businesses should set
example in cutting unnecessary expenses and operating efficiently.
This is not to say that there aren't any disadvantages to being home-based. One certainly must be well organized, disciplined, and willing to follow good time management principles. This alone could mark you as more professional than other businesses, home-based or not.
Expensive office space is not
answer to reflecting a professional image. If you are truly concerned about your image, offer quality service. Make sure that all your corporate communications (telephone, websites, printed materials, et cetera) reflect
professional nature of your business.

J. Stephen Pope, President of Pope Consulting Inc., http://www.popeconsultinginc.com/ has been helping clients to earn maximum business profits for over twenty years.
For more valuable Work at Home Business Ideas, visit: http://www.yenommarketinginc.com/