"For many, business ownership has become a path to financial freedom," according to the Alabama-based Ask Tax Guys. They point out that home-based business owners can deduct things like a home office, telephone, Internet service and office supplies. "When you start a business, the initial deductions may offer tax refunds, and as the business begins to make money, the continuing deductions provide financial freedom." Tax accountant Sandy Botkin says that having a home-based business can bring you around $3,000 to $9,000 in tax savings [source: Ask Tax Guys].
If you've ever thought about starting a business in the hours around your regular job, or you're a stay-at-home-parent with a great idea, starting a home-based business can make a lot of fiscal sense. The equipment you use for your business, and portions of the facilities and utilities, may be deductible. And you'll (hopefully) be making money, too!