What is the need for a legitimate home based business? Is not all businesses legitimate? Usually all businesses that the average indiNeed For Legitimate Home Based Businessvidual starts are legitimate.
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But here, when we speak of a legitimate home based business we mean a business where all the necessary paper work is perfectly maintained.
When we say paper work, we mean getting the necessary licenses (if required) and having them renewed at the proper intervals, maintaining a proper balance sheet of income and expenses and paying your taxes in time, even if the profits of the business are well below the minimum taxable income.
Coming back to the question - why the necessity of a legitimate home based business with all the paper work and documentation? The answer is that as your business grows, it might reach a point that you might want to diversify and expand your business and you might want some capital to do so.
If your business was a legitimate home based business you can walk into any bank and ask for a loan and you will have all the necessary documents to make the process of processing your loan application a lot easier.
Or you may be running a legitimate home based business involved in the manufacturing of some artifact. You may need credit to get the raw materials to produce these items. If you had all the documents to prove the legitimacy of your business, the acquisition of raw materials should not be a problem. The Creditor or the supplier will gladly extend the required credit or the goods on credit. You will also have a good credit rating.
By browsing over the Internet, you can come across a lot of home based business opportunities and it is up to you to filter out the fraudulent ones from the genuine and legitimate home based business, separate the chaff from the grain, so to say. An example of an illegitimate home based business would be the sort of appear-and-disappear multi-level marketing (MLM) enterprise. They collect the dough and vanish into thin air.
Some legitimate home based business would be:
- Insurance Agency of a number of Insurance Companies and get a legitimate commission,
- An Affiliate Program is also a legitimate home based business which can reap in a substantial rightful profit.
These are examples of businesses that give you remuneration that is accounted in the books of your principals and necessarily have to be accounted in yours also.
A legitimate home based business will keep the hounds from the IRS away from your heels.
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