As 2005 dawns on earth I am quite thoughtful. Many persons started their business in 2004. Some succeeded and some left disappointed.

This New Year would bring many new home entrepreneurs to net. How many of them would continue with what they started? How many would leave disappointed and disgruntled? How many of them would become a source of inspiration for others in waiting? How many would detest many others just because they failed.

I hear crackers bursting as people welcome New Year with full celebrations.

For those who have left, I feel sorry. They have left a road to wealth, richness and freedom from daily grind.

For those who are about to begin, I extend my welcome. 2005 is predicted to be best year till date for home business. Equally for those who are making millions right now or just starting.

Whatever kind of business you are in, wherever you are from, home business will make you rich.

The reason many people do not start a home business is because they think they can’t do it. The reason why people leave it is because they expect instant results.

Every body knows good fruits take time to yield. It is same with your home business.

Whether you plan to sell your own products or join affiliate programmes, patience and perseverance is name of game. You must maintain your efforts. Give your business time to mature. Otherwise one falls into traps of frustration and frustrated man cannot think clearly.

Clarity of thought is must for success.

If you're a sole proprietor, perhaps you've considered incorporating your small business or self-employment activity.

And so maybe you've been wondering, "When is best time to incorporate?"

From a legal standpoint, any time is best time. The sooner you incorporate, sooner you make move from world of unlimited liability to world of limited liability.

From a tax savings standpoint, any time is best time. The sooner you incorporate, sooner you will start putting more money in your own pocket and less in Uncle Sam's.

(For more about potential tax savings of a corporation, see second article in this series -- "Tax Trap #2: Double Taxation -- Isn't Once Enough?" http://www.YouSaveOnTaxes.com/tax-trap-2.html)

But from a **tax reporting** standpoint, there is one time of year that stands out as best: January 1st.

Why is that?

Assuming you have a sole proprietorship (or other entity, such as a partnership) that is up and running as of January 1, and assuming you then incorporate that existing entity on any date other than January 1, you face possibility of filing not one but two business income tax returns for that year.

Here's an example to clarify this important point . . .