Shelter from the Inevitable Tax Increases Is Also Best Hedge Against Unemployment
by Ed. on Aug.04, 2009, under eCommerce
Many Americans are rightly expecting taxes to go up soon. What else could happen with a $1.8 trillion annual deficit so far for 2009 and US tax revenues down over 18% for 2009(the largest revenue decline since the Great Depression)?
“Gibbs: No way, no how, no chance are we raising taxes on the middle class.” Update: 54% think tax hikes hurt the economy. And here. Only the extremely credulous would accept that statement at face value.
And they would be correct: tax hikes will hurt an economy already hurting from record unemployment.
So it’s obvious: tax increases are coming, and they’re coming soon. But as recent news about the economy being twice as bad as originally reported, so are the prospects of unemployment.
So unless you have a huge bank balance to tide you through unemployment, what is the best strategy to prepare for possible unemployment? Opinions differ, but many pundits recommend starting a small business now in order to provide some level of income if unemployment strikes your household; and to provide tax breaks now in order to shelter your income from taxes. Whether at current tax rates or from increased tax rates in the future.
You might say, “But it’s expensive to start a business!” I have to get a business license, incorporate, and upgrade my wardrobe so I can go seek some venture capital!
It turns out that this does not have to be the case at all. Can you afford $20 per month to be in business? If that’s too high, how about $13 per month? And a one time cost of $17 to publish a DBA notice in the local paper (at least that is the case here in California where government regulation is the least friendly of the 50 states)? You can leave the much more expensive incorporation and fundraising for much later when you are making some money. Besides, it’s much easier to raise funds or borrow later if you can point to an operation (your web site or blog) that already has some sales traction.
Of course, we are going to talk about an online business because you can create one now and genuinely, literally be in business before you go to bed tonight.
All it takes to ‘be in business’ is to put something like this on your web site or blog:
Buy My Video:
try it, you can really purchase from the above control, but of course it goes to a demo shopping cart.
You can have your own secure, advanced shopping cart that does the same thing as above in only 9 minutes.
Then to expand your new business, all you have to do is add more products or services at your earliest opportunity (like tomorrow).
Another idea with small business potential: drop shipping – where you never inventory or store the products you sell, but have the products shipped to your customer directly from the warehouse.
