The “New” Business Owner
Prior to the Industrial Age, being a business owner was commonplace. With the dawn of the industrial age, millions moved to the cities for the promise of a decent wage and job security. For decades it was possible to get a good job with good pay and a pension at retirement time. Employees felt a sense of loyalty to their employer. Most workers spent their entire career working for the same company. But in the wake of plant closings, huge layoffs, insolvent pensions and a failure of the promises Corporate America made to it’s workers, that is no longer true.
The Entrepreneurial Generation
In a 2014 survey of Millennials, only 13% of respondents said their career goal was to climb the corporate ladder, while 67% said their goal was to start their own business.
Business Ownership Advantages
Sure, when you own your own business, you run the risk of failure, but for those with an entrepreneurial spirit, the rewards outweigh the risks. You control your own destiny. You’ll work hard, but you will reap the benefits of your success. You can do what you are passionate about. And as an added bonus, business owners enjoy a number of tax advantages over employees.
The cost of producing revenue is deducted as a business expense: IRS Deductible Business Expenses
As a commuter, the money you spend to get to work is not deductible. As a business owner, the IRS allows a deduction of 57.5 cents for each business mile driven: IRS Standard Mileage Deductions Rates
As an employee, contributions to your retirement plan are limited to $18,000 per year. As a business owner, you can contribute 25% of your net income, up to $53,000 annually: IRS Retirement Plan Contribution Limits
As an employee, you can only deduct the portion of health insurance premiums that exceed 10% of your income. As a business owner, it is a deductible business expense: IRS Rules for Self Employed Health Insurance
If you have been dreaming of starting your own business, the time is now. With proper planning you can succeed.