Category Archives: Self Employed

Ask SCORE: How can I win in the gig economy?

The “gig economy” — the market for individuals providing services or working on projects on a freelance on-demand or short-term contract basis — has been a growing trend. While there are no official gig economy statistics available to measure its prominence, we can make some assumptions about its increasing popularity based on other available data.

According to information reported by the United States Census Bureau, the number of non-employer businesses, the group of individuals most likely to work on gig basis,  was 24,331,403 in 2015. That’s 10% more than the 22,110,628 non-employer businesses in 2010.

And opportunity abounds for independent professionals who take on gig assignments. Many businesses outsource work to independent contractors and freelancers when their staffs are overwhelmed and to avoid the costs of benefits and ongoing payroll that come with hiring new employees.   Continue reading

Advertisements

Zero cost federal tax deduction — business use of your home.

by Joe Heinrich, Certified SCORE Mentor

Nirvana would be that a small business owner could generate a deduction from her/his business’s taxable income at no cost. Well, that situation is available for many small business owners: the business use of the home deduction. However, not all of small business owners are taking advantage of this deduction due to not knowing about it or fearing that taking the deduction will trigger an IRS audit.

First, the facts. IRS regulations allow a business owner to take a deduction for the business use of the home, provided that the space is used “exclusively and regularly” for business purposes. The space can either be a room, a part of a room, a closet, the basement or garage, or a separate building on the home’s lot.  Continue reading