Money Smart: Max Your Tax Refund

Money Smart
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LOS ANGELES (KTLA) — When it comes to tax refunds many people pay bills or simply blow it when that big chunk of change comes in from Uncle Sam. But continuing in our “Max Your Tax Refund” Money Smart series, we have a way for you to take control of your financial future.

You have taken all the necessary steps to make sure you get a check from the IRS, so why not use that money to make more money? One idea…

“Why not take that refund and start that home-based business that you’ve always dreamt about,” suggested Nellie Akalp of CorpNet incorporation services.

Have you always wanted to be your own boss or have an idea for a home business start-up? Akalp says that tax season does not have to be a nightmare. In fact, your refund can actually make your dreams come true if you start planning now.

“People often think it’s so expensive and difficult to start a business, but the reality is, you can start it for as little as $49 plus state fees with our service,” Akalp said.

She gives five steps to help you say “you know what” to your boss and embark on the road to becoming an entrepreneur. Number one is all in the name.

“You want to make sure you get that business name selected and available. This is the most critical and often the most exciting step for entrepreneurs,” she said.

The next step on your way to work freedom is to make it official.

“Once you got that amazing name all squared away, you want to make sure you register it with the state or county that you’re going to do business in. Incorporating, forming an LLC, so that nobody else infringes upon your name,” Akalp said.

Number three, do not forget to get your digits from Uncle Sam.

“A federal tax ID number is basically the Social Security number for the company. You don’t want to be giving out your Social Security number,” she explained.

Number four is to do it legally.

“Make sure your specific business type doesn’t require a license or permit. For example, in California if you’re reselling products and services, you have to get a reseller’s permit. Get those business licenses and permits squared away at the start, so you don’t face any late payments, taxes or penalties down the road.”

Finally number five, seek a small business expert who can take your new vision to a money-making venture.

“If you have a business that you want to start, contact CorpNet and let us handle everything for you,”  Akalp suggested.

“Last year my hubby and I decided to come up with a side venture, where we used our refund from our returns to start it up. This goes to show that anybody can start a new business if you have that vision, that drive, that passion, go ahead and get that small biz started and you’ll love it,” one successful entrepreneur said.

Akalp says there are no ideas too small and your tax refund can really be seed money if you use it right.

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