More than ever before, people are beginning side hustles and home businesses to make ends meet in these awful economic times. But there are some success stories. But before you can succeed, you need to make your home business legit to attract customers and avoid penalties.
A Legitimate Address
When working from home at your own business, it can be off-putting to use your home address for business. And in some cases, such as renting, this is illegal. Further, some clients won’t work with businesses that provide a PO Box because they cannot be looked up. However, you can use a virtual address. This is when, for example, you associate your business with a legitimate office address in a city, which then forwards all correspondence to you at your home office.
Tax Documentation, Of Course
Taxes are the big one. If you don’t register to pay taxes as a business, you can end up with hefty fines and even jail time. Even if you don’t earn enough to pay taxes from your side hustle, you still need to report the income. But you cannot do this without official tax registration and documents. In countries like the UK, you sign up online via the HMRC website. Official tax sites have all the info you need. However, it is often much harder to do if you don’t have a passport.
Make Your Home Business Legit with a Business Account
One of the first things you need to do for good business alone is to have a separate account for reliable business finances. This helps avoid a ton of mistakes and money mismanagement. But it also looks more genuine to customers. A business bank account is easy to obtain from your current banking provider, and some may even offer benefits for opening one. However, like anything, always shop around since some banks are better than others for business rates.
Genuine Company Registration
You can make your business look even more official by registering with your local and national commercial services. In the UK, this is done when you sign up for your tax number as a sole trader or other business type. But you can further solidify a business through Companies House. In the US, you can do this through your county office and when you register for an EIN number. Most countries have an official registration service that clients will often check.
A Solid Business Plan
Of course, your business is only as successful as you plan it to be. Without a solid plan, you are firing in the dark. Even the smallest business needs direction, structure, and creative ways to attain customers. Social media and other forms of digital marketing are very easy methods of doing this. But a business plan should also include costs, the best audience for your niche, and plans for future expansion. If nothing else, a plan will help you stay focused on what you need.
You can make your home business legit as a way of attracting more customers. Easy methods include using a virtual address, opening a business bank account, and sticking to your plan.