Outright.com founder covers the critical fundamentals of starting your own business including: What it means to be in business for yourself, Getting paid and paying others, Working with independent contractors, Bookkeeping – the simplified version, Handling the more confusing deductions, and Taxes: what and when you have to pay.

1. Managing Financial Transactions, Bookkeeping Basics and Small Business Tax Tips Kevin Reeth CEO and Co-Founder, Outright.com July 15, 2009

3. As a “Business Owner” you Must… Generate your own income Fund your expenses Contribute to Social Security and Medicare Track and report income and expenses Pay income taxes on your profit Pay taxes at least 4 times per year Track and report any payments to contractors

7. Key “Deductions” < $250,000 on equipment? Write it off Depreciation X Home office deduction (form 8829) % of square footage for office Household expenses (rent, insurance, Utilities, etc) Only 50% deductible Meals & Entertainment $.55 per mile Mileage Value of inventory on Jan 1 + $$ spent on new products - Value of inventory on Dec 31 Cost of Goods Sold

10. Resources http://bit.ly/Vn50B Nolo’s Small Business Taxes Online services http://www.irs.gov/pub/irs-pdf/f8829.pdf Home office (Form 8829) www.irs.gov/pub/irs-pdf/f1040sc.pdf Profit & Loss (Schedule C) Tax forms http://www.irs.gov/pub/irs-pdf/f1099msc.pdf 1099MISC www.outright.com http:// oe.quickbooks.com Online bookkeeping www.paypal.com Paypal www.freshbooks.com www.harvest.com www.blinksale.com Online invoicing and time tracking www.docstoc.com Sample independent contractor agreements