You’re here because you are looking for home business ideas for lower taxes, right?
You’re on the right page.
Starting a home-based business is beneficial in many ways.
First, it’s a great way to make extra income.
Secondly, you can enjoy great tax deductions.
However, the challenge is in determining what home business ideas for lower taxes you can start.
That’s why we have crafted a list of 6 home business ideas for lower taxes.
Let’s get started.
Home Business Ideas for Lower Taxes
Here is a list of business ideas you can start at home that don’t have too many taxes.
1. Service-Based Businesses
Service-based businesses are one of the best home business ideas for lower taxes.
Some good examples of home business ideas include freelance writing, editing, graphic design, programming, etc.
The good thing about these types of service-based business ideas is that their demand continues to increase significantly as the job market shifts from in-office to remote working.
According to a 2022 Owl Labs survey, 42% of workers choose to work remotely:
Image via Owl Labs
If you have any of these business skills, you can make money online from the comfort of your home.
Plus, starting any or all of these types of businesses offers you a great level of flexibility.
You can choose what projects/clients to handle when to work, etc. Besides, there are plenty of freelance writing platforms such as Upwork, ProBlogger, Fiverr, and many others where you can join and start applying for jobs.
2. Retail Arbitrage
Retail arbitrage is one of the other popular home business ideas for lower taxes.
In this type of business, you buy items in bulk from popular marketplaces and online stores like eBay, Alibaba, Amazon, and Walmart at lower prices and sell them online at higher prices.
The best thing about this business is that you don’t need to set up a physical shop to get started.
All you need is a good laptop, an internet connection, and some online marketing skills.
Besides, there are many product research tools out there that can help you determine what products to purchase and how to price them for a profit.
With this kind of business, you can avoid a lot of expenses and taxes that come with shipping items, purchasing them, renting storage space, etc.
3. Flipping Secondhand Items
Flipping secondhand items is also a great business idea for lower taxes especially if you don’t have the time to start a retail arbitrage business.
The good thing about this type of business is that there are many secondhand items out there.
You can even start by flipping items from your closet or finding them on online marketplaces.
Wondering what secondhand items to start flipping?
Here are a few:
- Household appliances like freezers, air conditioners, water heaters, microwave ovens, kitchen stoves, etc.
- Clothing both for young and older people.
- Designer bags.
- Furniture.
- Tech gadgets like smartphones, tablets, etc.
You can start selling these items on marketplaces like eBay, Facebook, and other platforms.
4. Consulting
Do you have expertise in a certain field or experience in a particular subject?
If so, then you can start a consulting business that you can do from the comfort of your home.
For instance, let’s say you have expertise in a business-related field. You can provide consulting services to people wanting to invest in that type of business.
There are plenty of people out there wanting to start businesses but they aren’t sure where to begin.
When you start a consulting service, you will be able to avoid taxes associated with rent, computer expenses, and more.
That said, you’d still have to establish yourself as a legal business entity. You can do so with an LLC formation service like Inc Authority. Here’s an Inc Authority review by GovDocFilling to help you figure out if you should form your business using their services.
5. Internet Business
As of January 2022, there were over 4.9 billion internet users:
Image via Hootsuite
What’s more?
The retail e-commerce revenue in the United States is estimated to exceed $1.2 trillion by 2024:
Image via Statista
What does this mean?
There is no better time to start an Internet business than now.
The good news?
Starting an internet business isn’t a tough task. Plus, you can create a dedicated business space inside your house and start selling online.
Besides, there are many different types of Internet businesses out there including:
- Dropshipping
- Affiliate marketing
- Blogging
- And more.
With an internet business, you qualify for deductions such as domain name registrations, graphic design, web hosting, etc.
6. Coaching, Training, and Tutoring
Online training, coaching, and tutoring are also great examples of home business ideas for lower taxes.
If you have valuable skills or specialized experiences, you can start any or all of the following home-based businesses:
- Academic tutoring
- Life Coaching
- Online tutoring
- Music teaching
- Nutrition or culinary instruction
Online tutors in the United States make an average of $42,421 per year according to Glassdoor.
Image via Glassdoor
Conclusion
If you’re looking to start a business but are afraid of paying hefty taxes, then we hope you will find our list of home business ideas for lower taxes helpful.
Note that while most of these business ideas are easy to start and run, you need some level of experience and specific skills to get started.
Thus, we recommend deciding the type of business you want to start and then finding an online course that can equip you with the experience and skills required before you get started.