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The Tax Benefits of Starting Your Network Marketing Business

The Tax Benefits of Starting Your Network Marketing Business

Making money in network marketing may seem difficult in the beginning, but it can be done.  Most enter the profession thinking of it the same way as a job – trade your time and get paid by the hour.  Keep in mind when you trade your time for dollars you are renting your time and not building any equity in a business or a job.  Most people fall into the employee mindset and have a difficult time working for anyone or anything without being paid by the hour.  You are also taxed on every dollar you make immediately as an employee whereas a business owner you are taxed on only the money that is left over after all of your expenses.  So the quickest way to make money in network marketing is to do it through taxation if you have a job and are already having taxes pulled out of your paycheck.  You now have the opportunity to write off everything you use for business – cell phone, business cards, transportation, gas, home office, meals, product, advertising, etc…  Get in the habit of keeping all of your receipts and change your filing status with your HR Department at your job and add a few more dependents and you will get an instant pay raise from The Federal Government.  This will immediately put a few extra bucks into your pocket every month.  I am not an accountant, so if you have one you may want to check with them, but most are familiar with the tax laws in our country and how they usually benefit the self-employed and having a home-based business would put you into this category.  One of my first mentors in the network marketing profession who had made millions would require every new person he sponsored to open up a tax file and begin saving all of their receipts.  Even if you don’t sponsor anyone, but actually put in the time to build your business and show the government that you are making an attempt to make money you will still benefit greatly from having a home-based business.  but actually put in the time to build your business and show the government that you are making an attempt to make money with your business you will still benefit greatly from having a home-based business.  My fiance who has been with the same company for 16 years was advised by her own accountant to start a

One of my first mentors in the network marketing profession who had made millions would require every new person he sponsored to open up a tax file and begin saving all of their receipts.  Even if you don’t sponsor anyone, but actually put in the time to build your business and show the government that you are making an attempt to make money you will still benefit greatly from having a home-based business.  My fiance who has been with the same company for 16 years was advised by her own accountant to start a home-based business to help with her tax burden.  So whether it be network marketing or landscaping, everyone should have a part-time home based business in my opinion.  It just makes perfect sense and will save you money on the money you pay in taxes, plus put a few extra bucks into your pocket each and every month with minimal effort.

If you don’t have a full-time or part-time job like 80% of the people entering our profession than you are either self-employed, retired, or unemployed.  Either way, you will still want to keep receipts for everything pertaining to your business.  This is by far the quickest way to put money into your pocket in network marketing.  All your expenses will go against any of the income you generate with your network marketing business and other income streams.

To learn more about the tax benefits of network marketing click here to watch an overview by Sandy Botkin CPA a seasoned tax accountant, former legal specialist with The Internal Revenue Service, and author of The Best Selling Book, “Lower Your Taxes BIG TIME”.

In closing, it is hard to say anything positive about paying taxes. It always hurts but we all have to do it. The good news is that by joining any network marketing company there are tax deductions that you would not have been able to deduct if you did not have a home-based business.

Always consult with a tax professional. We cannot provide any warranty about the information above.

More Resources For You:

Best Ways To Make Money From Home

How To Build A Successful Network Marketing Business Online