Setting up Your Home Business: Sole Proprietorship, Partnership or Corporation?

If you are thinking of starting a home based business, first off, you’ll have to think about how you will set up your business.

There are three types of business structures:

• sole proprietorship
• partnership
• corporation

Sole proprietorship

Chances are if you are starting a home based business, you will want to go with the simplest kind of business structure -- a sole proprietorship. This is an unincorporated business that is owned by one person.

If you're a sole proprietor, you pay personal income tax on all revenue generated by your business and you assume all the risks of the business. Keep in mind that these risks extend to your personal property and assets.

A sole proprietorship is easy to set up. If you operate as an individual, all you need to do is bill your customers in your own name. Otherwise, you can operate under a registered business name and bill your customers in the business's name. Be sure and remember that you’ll need a separate bank account to process cheques payable to your business name.

How does a sole proprietor pay taxes?

As a sole proprietor, you pay taxes by reporting income (or loss) on a personal income tax and benefit return.

Partnership

A partnership involves two or more individuals, corporations, trusts, or partnerships that join together to carry on a trade or business.

Like a sole proprietorship, a partnership is easy to form. In fact, all you really need is a verbal agreement to form a partnership but it’s always a good idea to have an agreement in writing!

How does a partnership pay taxes?

A partnership by itself does not pay income tax on its operating results and does not file an annual income tax return. Instead, each partner includes a share of the partnership income (or loss) on a personal, corporate, or trust income tax return.

Corporation

A corporation is a separate legal entity that can enter into contracts and own property in its own name, separately and distinctly from its owners.

To set up a corporation, it’s a lot more complicated and costly. You need to complete articles of incorporation and file them with the appropriate provincial or federal authorities. As well, filing tax returns is mandatory and must include complete financial statements and schedules.

Work at Home Business Opportunity For Couples: A Recipe for Success or Separation?

Even for happy and compatible couples, maintaining a healthy relationship can be hard work at the best of times.

But if partnering to run a home business is added to the mix, is it likely to result in conflict?

That depends, say the experts, on a number of factors. Here are some tips for keeping harmony at home and in the home office:

Tips for Couples Considering a Work at Home Business Opportunity

Carefully define each partner's role

From the outset, sit down together and write out a business plan that includes clearly defined roles for each of you. Think about what each of you does best and then decide together who does what.

Think partner, not employee!

If one of you is used to being the boss at work, be careful this dominant role doesn't play out in your home business.unless that's how you both want it.

Respect each other's ways of doing things

While you may not like certain methods in the way your partner conducts business, unless it's a biggie, try not to inflict your business style or work habits on your spouse. Chances are you wouldn't do it to a coworker so don't do it to your soulmate who happens to be your workmate.

Have your own work stations

When it comes to personal space, we're all a bit territorial, and that includes where we work and how we organize our clutter. Even better, if possible, have separate offices. That way, when you're on the line with clients, background chatter doesn't make it sound like a call center!

Be careful to share household and family duties fairly

If in the past, while you were out taking care of business, your spouse looked after the home and family. Once you become workmates, however, sharing childcare and household responsibilities will be a necessity in order to keep harmony in the house.

Don't let work become the only thing you share

Business is about competing but a personal relationship is about love. Make sure you include "give a little love and affection" to that daily to-do list.

Just as not all relationships and marriages survive, the pressures of working and living together can sometimes spell trouble for couples. But, for every couple who decides against starting a business partnership, there is a happy pair successfully sharing a work at home business opportunity. Only you and your partner can decide if you have what it takes to find success together.

Together, you might just find the motivation to make it work!

Stress Breakers at Work

Picture this: You’re in your slippers, wearing your favourite comfy sweat pants, sitting in an ergonomically-correct desk in your fabulous new work at home office. What could be more relaxing, right?

Well, maybe not. That’s because no matter where you work, or how much you love your work at home business, it’s normal to face stress on the job.

It’s called work-related stress and it’s pretty much unavoidable – unless of course your name is Mr. Spock and you’re riding on the Starship U.S.S Enterprise!

Assuming you are of the human variety, undoubtedly you face feeling stressed out from time to time and can use some stress breakers at work.

Here are some proven ways that will help clear your mind, relax your body and rejuvenate your spirit:

Stress Breakers at Work:

1) Get up and Go: Exercise relieves stress

If you’re in the habit of spending long hours at your desk, no wonder you’re stressed out! Imagine the impact it has on your body holding itself in the same posture for hours at a time.

Give your muscles and joints a break! Take the time to stretch out and circulate oxygen-rich blood throughout your system.

And if your head feels as if it’s going to explode, chances are it’s time to step away from the pressures of work. No matter how comfortable your home office is, it’s a good idea to remove yourself for some fresh air and get a new perspective on things.

2) Take a Deep Breath and Stretch...

If you’re not really into working up a sweat, how about a relaxing and peaceful yoga class? Research shows that yoga is an effective way to lower blood pressure and reduce your heart rate. Yoga let’s you slow down, stretch out and unwind while you energize your mind, body and spirit.

3) Lie Down and Get Naked

For a professional massage, that is. A therapeutic body massage is a sure way to detangle your tension and release your anxiety. Book one today and you’ll be sure to make it a regular part of your stress breakers at work strategy.

4) Change Your Environment – It’s good for you!

Probably even more important than the cardiovascular exercise you get from a brisk walk around the block at lunchtime, is the change of scenery you will benefit from by leaving your home office for a bit of midday exercise or any other activity for that matter. It’s true, change is good!

5) Eat Well and Stay Rested

Garbage in, garbage out is the old adage and it’s true when it comes to your diet. A healthy, balanced, nutritional diet can help keep your head clear while you focus on your work at home business.

Last but not Least: Get Organized

Probably the biggest cause of work-related stress -- other than having a boss from hell -- is the feeling that you’re falling behind in your work. Focus on improving your project list-making and prioritization skills and it will relieve some of the pressure that’s getting to you.

As you can see, the best stress breakers at work are simpler than you might have expected. Once you are re-energized, you can get back to your cozy work at home office and expect the best from your work at home business.

Scams - Work at Home

The typical pattern of the scheme is that the consumer or applicant receives information either by wa y of a classified ad in the newspaper or from a flyer through the mail offering them huge earnings with no experience necessary by working out of their homes.

There are primarily two types of work at home schemes - stuffing envelopes and assembling products. There are also directories available that the consumer may purchase which contain a list of companies offering such schemes under the guise of legitimate business. All work at home schemes have one thing in common - they all require an upfront fee.

Consumers should be realistic when considering the likelihood of such an offer. For example, have you ever had to pay money to a company in the past to receive employment? In the province of Alberta, it is against the law to charge a fee for hiring.

In terms of stuffing envelope schemes, there are machines that can stuff up to 10,000 envelopes per hour when a person can only stuff a maximum of 300 per hour. Therefore, why would somebody pay a person to do a job that can be done more efficiently by a machine? Better Business Bureau experience has revealed that after responding to a stuffing envelope scheme, one of two things will happen. The consumer either receives no reply from the company, or the consumer receives information instructing them to place an ad similar to the one that they had responded to. The respondants then earn their money by requesting that others send them money for information on how to stuff envelopes at home, as they had initially done. Recruiting others to send money for no exchange of a product or service is known as a pyramid scheme. Pyramid schemes are a direct violation of The Competition Act and therefore, are illegal.

Assembling product schemes also require the consumer to send an upfront fee to purchase materials. Our experience has shown that in many cases the instructions for assembling the products are very difficult to understand and the company may overestimate the potential earnings while underestimating the time requirements. In the end the company reserves the right to reject the items due to poor workmanship. Therefore, the consumer may end up keeping the products, and, of course, fail to make any money.

Ultimately consumers should exercise extreme caution when sending money in advance or when disclosing personal information to an unknown source. When searching through the classified section for employment opportunities be suspicious when an ad offers unrealistic earnings with no experience necessary. If it sounds too good to be true it usually is.

Source:
Canadian Council of Better Business Bureaus
Click Here

Separate Work from Home

To successfully manage a home and a business some people find it helpful to implement effective separation strategies, especially if your business is home based. You can define your work hours and your home hours and try to keep to these times as much as possible. That means that you don’t even think about the dishes, washing, unmade beds or ironing during your work hours – unless the place resembles a pigsty and a client is due any minute. If the business telephone is ringing during home hours on a Sunday morning, decide whether you really need to answer it or if it is acceptable to let it go through to the answering machine. It helps also if you have a defined work area, preferably a room with a door, or a separate shed or garage. This way you can close the door and ‘go home’ at the end of your working day.


That is the easy bit. The hard part is trying to get it through to others – friends, family and customers – that you have work time and home time and never the two shall meet. Don’t feel bad for not spending all day sitting on the telephone chatting with friends. If you have trouble ending the call, just be honest with them. Tell them that you would love to talk but you have a tonne of work to get through today, or an important deadline to meet. Can you call them back this evening or at the weekend? If you make a time to call them, don’t forget. If you don’t call back when you say you will you are only encouraging them to telephone when you are trying to work.

Alternatively, if you don’t really want or need to speak with someone, consider sending an email. This is not to suggest email messages should entirely take the place of voice conversations, but in many cases such as quick questions or general “hello’s” they can save a lot of time. If you have a piece of news you would like to share with a number of people, you can send one message to everyone. This can save heaps of money on telephone calls, too.


While these simple strategies are a Godsend for many people, others find it easier to blend work and family life as necessary on a day-to-day basis. This is often better-suited to people who are reasonably well disciplined and able to prioritise tasks. The main thing is for you to try both methods to discover which one works best FOR YOU.


Transforming from Home to Business


Many businesses today can be successfully operated from home. This may be a suitable option for you, and it will help reduce expenses in the early days of your business. But remember, it takes a special person to be able to work from home – successfully.


Are you disciplined enough to work from home? Do you have the necessary space? What about your family? If your partner is a shift worker, they may not appreciate the telephone ringing all day. Will you have staff or customers visiting your home? If so, is your home likely to always be presentable to clients and associates?


If working from home is an option for you, you should ask yourself the following questions:

• Do the terms of my tenancy agreement or mortgage allow me to operate this business from home?
• Will my local council permit me to operate this business from home?
• Is my home easily accessible, and is there sufficient parking and facilities such as toilets and washbasins for my customers and staff?
• What modifications will be required?
• Will I be employing staff, and if so, will Health and Safety regulations and council permit this?
• Will I need to store any valuable or dangerous goods or chemicals?
• How will my present insurance policies be affected?
• Will my business cause excessive noise, dirt or smell?
• Is operating this business from my home likely to upset any of my neighbours?
• Can my storage and waste disposal requirements be met?

When you operate your business from home, some people may expect service 24 hours a day, 7 days a week. Ensure you have clear signs stating your hours of operation – and stick to them. Similarly, friends and family may call or drop in anytime. You should be strict with them – and yourself – and explain that you must continue working.


Isolation can also be a challenge. To overcome this, try to network with other business people as often as you can. This is also a great way to promote your business.


Additionally, try to break the isolation by getting outside at least once a day, even if only to take the kids to and from school, go for a walk, check the post box or do the banking.


There is much to consider, but a home-based business can work if operated properly.



Some golden rules to remember include:

• Endeavour to have a real office and / or work area, not just part of the dining table and the kitchen bench.
• Always sound and look professional.
• To help avoid procrastination keep focusing on your goals. Creating deadlines for those tasks that don’t currently have deadlines can also help, as can keeping copies of bills on your notice board!

Home Careers: Ideal for Seniors and Older Workers

We’ve all heard the expression, ‘over the hill’. Kind of funny, unless of course it’s you who’s reached mid-life and just got passed over for that job you’d been hoping for!

It’s called ageism – society’s prejudice against older adults – and it’s the sad reality faced by people even as young as forty. Yes folks, youth is what our culture seems to value most, not the experience and wisdom that a mature worker can offer.

Work at Home Careers Can Mean Equal Opportunity

Rather than face the frustration and rejection of job-hunting when you’re of a ‘certain age’, why not consider one of the many work at home careers? Here are some reasons:

• Time is precious – why waste it doing something you don’t love?
• No more exhausting daily commutes in heavy traffic
• No more job interviews that feel like cattle calls where you’re left to feel like the old grey mare!
• Why waste your time trying to convince someone half your age that you can do the job when you know darn well he’s made up his mind you’re too old.
• Are you tired of co-workers and bosses dismissing your ideas because they think you’re ‘old fashioned’ or ‘out of touch’ with popular culture?

Once you make the commitment to work at home, the number of careers that open up to you are almost limitless. The key is doing the research and finding one that works for you and your lifestyle.

Certainly some work at home careers are better suited than others to the older worker. Consider business opportunities that offer the following:

• Online or telephone sales or customer service
• No needless and tiring commutes to far away business locations
• Flexible hours so that you can take care of ageing parents or even a spouse
• no heavy lifting, packing or shipping
• Some companies may offer health and drug plans

After you’ve chosen a business that is a good match for you and the wealth of knowledge you can offer, then it will be about who you are, not how old you are.

Satisfied clients will always appreciate the wealth of experience and knowledge that mature adults can bring to their work at home careers.

Buying Computer Desks for a Home Office

Having a comfortable, well-designed workstation is a must for any work at home business. When comparing computer desks for a home office, here are the important features to look for:

• plenty of flat work surfaces
• a large slider tray for keyboard and mouse
• a durable, moisture and heat-resistant surface
• levellers to balance the desk if floor is uneven

Avoid Injury – Make sure it’s ergonomically correct

Ask anyone who has injured themselves at a desk job. Computer desks for a home office need to be ergonomically correct – basically that means maintaining proper body positioning during an activity -- otherwise you run the risk of painful musculoskeletal injuries such as back, neck, shoulder, hand and wrist problems.

The Business and Institutional Furniture Manufacturer’s Association says you should always be able to fit your legs and feet easily under the desk -- without any obstructions -- otherwise your body is vulnerable to injury.

Sharing Space with Your Home Office

If you don’t have a separate room for your home office, don’t be discouraged – you’re not alone. According to Equifax, nearly 75 percent of computer owners don't operate their computers out of a designated home office.

If this is the case for you, consider buying an armoire-style unit when comparing computer desks for a home office. These smartly designed units include a place for everything including a printer, CPU shelves, mouse pad and a keyboard tray – and let you close shutter-style doors to keep the computer out of sight when you’re not at work.

Armoire Desk Creates Privacy Around You

If you prefer a more enclosed space while you work but don’t have the luxury of a separate office, try keeping the armoire desk’s shutters wide open, creating a cubicle effect that blocks out distractions. Then when you’re ready for a break, just shut the armoire doors -- and call it a day.

Choosing the right computer desks for a home office is one of the most important purchases you will make so shop around. Staying organized at a comfortable workstation will not only make you productive, your body will thank you for it!

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