Tax Tips For Network Marketing Professionals
Before I dig into any tips, understand that you should always consult with a professional accountant / tax professional. I have found the following tips to be beneficial and sound but offer them up soley as educational tips, not formal advice. 😉
Tip 1: Form a formal business entity (LLC, S-corp etc…) for tax benefits
There are pretty awesome advantages and reward set up for those who are contributing to society through a business. Formalizing your business will allow you to take full advantage of those advantages.
The next obvious question is ‘at what stage of building my business should I do this?’ Well my advice is to do it from the very beginning when you start your business! There’s something powerful about not just becoming a rep for a company, but legitimately starting your own business. It’s going to put you in a totally different mindset and up your commitment level. =)
Tip 2: If possible convert your network marketing distributorship to a business account
Some companies allow you to transfer your account to be under your business entity name. You might need to fill our some kind of business addendum for this. Check with your company.
Tip 3: Separate your business from your personal life
I highly recommend that you set up a separate bank account for your business as well as grab checks and a separate credit card for your business.
This is going to empower you to keep things separate and allow for easier accounting at the end of the year.
Tip 4: Track your business expenses
One of those awesome advantages that I talked about before is the ability to write off different business expenses from your taxable income. You might be able to write off a percentage if not all of your cell phone, computers, gas mileage, part of your home, courses, trainings etc…
This is something you’ll want to work directly with your tax advisor on. 😉
Use an app like Expensify to track your expenses on a day to day basis. It will make your life SO much easier come tax time.
(comment below this post if you have any other app suggestion that you like!)
BONUS: The health insurance option we use as Network Marketers
If you’re a full time entrepreneur and looking for a good alternative health insurance option you may consider Christian Healthcare Ministries.
They are a unique alternative to the typical health insurance. You pay a really reasonable monthly fee and have a per incident deductable of $500.
If you’re interested in learning more reach out to me and i’ll give you more of the details. They also offer a referral program so if you refer someone else you get a month free so if you use our referral link, thanks! Seriously let me know if you have questions =) We have LOVED CHM. It’s a great option health insurance option for the home based entrepreneur.
Our referral link:
Have an awesome day!
PS I also mentioned the www.OnlineNetworkMarketingMastery.com community. Check it out if you’re looking to learn more about building your network marketing business online! I have a free tutorial every single month on topics ranging from webinars to funnels and ads!