Being a B-ad entrepreneur makes sense!

A couple of weeks ago, Seattle Simplicity commented on one of my earlier posts - and I had a followup on that comment. However, one part stuck in my mind :

However, not all of us are cut out to be entrepreneurs.

Most of us, when we think “entrepreneur” translate that mentally as “run a business that makes money”. It seems almost foolish to think of running any business if it doesn’t earn / make a profit. And if you doubt your ability to start and run a business successfully, the choice overwhelmingly is to be an employee, and not have to worry.

But what if that doesn’t matter? If you don’t have to worry about making money, making a profit, or scouting for business - or even investing in it?

Look at the typical pf blogger. Most are employees, earning reasonable amounts, paying taxes, and trying to maximise what is saved. And we blog.

Add this recipe :

Make your blog your business - consult your tax advisor for how best to structure it, but most situations doing it as a sole proprietorship seems to be appropriate. In some places, it’s called “doing business as”. Make sure that you can offset any losses from your income, for tax purposes.
In reality, you aren’t making losses - because you aren’t going to spend any more than you are already doing today. But by running it as a business, you’re allowed to deduct relevant expenses. Internet access, books, software, computers - maybe even part of your rental? Each person’s situation would be different, so that’s where the tax advisor would come in.
(Hmmm - could I consider travelling to meet with another business-person aka blogger as a deductible? If so, then I just plan my holiday - and meet a blogger while I’m about it?
So if you’re currently spending around $200 a month on expenses that you could deduct, and assuming minimal income (you might need to sign up for Adsense or some other such program to justify the “business”, but it doesn’t matter if you’re earning or not) - that’s a “loss” of $2,400 over a year. If you’re at the 40% tax bracket, that’s $960 saved on taxes.
And if you could deduct more, why not? You don’t need to pad it up or spend anything extra - just make sure that whatever you claim conforms to tax law

Now here’s a question to all pf bloggers.
How many of you are b-ad entrepreneurs? (Blog - Ad - entrepreneur running at a tax loss>)

And if not, why not?

Written by 2cworth on May 25th, 2006 with no comments.
Read more articles on Internet Business and Useful tips and Opinions.