One of the biggest perks to running a business of your own is the ability to write off all of the different advertising, furniture and costs associated with the business.
It’s one thing to have a regular retail business, but in the world of online marketing the rules are still the same. The only thing that is different is the many options you have for tracking your costs, reporting taxes and knowing what you can write off.
With a brick and mortar business you would usually have rental costs, employees and products. Sometimes it’s the complete opposite with online businesses.
In this article we are going to cover some of the many different things you can write off when your business is nearly virtual. Let’s get started.
Domain Names – Every online business has a domain name associated with their site. If it’s a new domain name, the cost is around $10 a year. If you are purchasing a high end domain name, you could be paying several hundreds of thousands of dollars.
Web Hosting – Just like every web site needs a domain, it also needs a web hosting service. Most hosting packages start around $7 a month, but can go up to several thousands of dollars monthly.
Virtual Assistant – You may be working out of your house as an online business, but that doesn’t mean you have to do it alone. Many online companies hire virtual assistants to help with their business, while also seeing a fraction of the cost it would take to hire someone locally to work for your business. Some virtual assistants will start in the $300-$700 range per month.
Tech and Customer Support – Just like you can hire a virtual assistant, you can hire virtual customer and tech support as well. The more time you can focus on your business and the less on support, the better you will be off. Outsourcing of support can range from a few hundred dollars a month into the thousands.
P.O. Box and Home Office – If you are going to run the business out of your house, you may want to consider having an alternate address to receive checks and post your location online. When running the business out of your home, you may also be able to write off a portion of your home. (check with your accountant)
The list above is only scratching the surface for when it comes to what you can write off when you own your own business. If you are ordering any service, office furniture, shipping products and even placing advertising on other sites, it’s all possible for you to write off these costs in your business.
As always, check with your account and be sure to keep good records on all of your costs ad spending.