Do you hope to work from home some day? Many others have the same goal and, in fact, the work at home workforce has grown more than 800% in the last decade. Forming an LLC at home has become a legitimate and profitable way to earn a full time income but it isn’t for everybody. Possibly the most dangerous part of the work at home sector is the fact that it is sometimes difficult to know if working at home is a good fit for you and once you find out, it may be too late. Here are four red flags to avoid when forming a home based LLC.
Little Work, Big Money
A recent inquiry in to the many work at home opportunities found that only about 10% of the advertised opportunities were legitimate. Often, the illegitimate offers play on the reader’s emotions by claiming things like, “earn a full time income working only part time.” Others might read, “Solve all of your money problems” and they have pictures of money, luxury cars, and beachfront condos. Experts say that the best way to avoid these too good to be true scams are to use common sense. There doesn’t exist any opportunities where you can not work and make money.
If you’re looking for a legitimate opportunity, there are online brokers who match legitimate people to legitimate opportunities.
You Have to Pay
The only thing you should pay for are personal items related to your home office. Furniture, pens, staples, paper and other items that you would need as an independent employee. If a work at home opportunity tells you that you have to pay for training, buy manuals, or attend classes specifically related to their product at your own expense, it’s almost certainly a scam. Did you have to pay for job related supplies at any other job you held?
It’s Outside of Your Expertise
A large portion of successful people who work at home are in a business related to a traditional job that they once held. That’s not the case for everybody but you have a much higher chance of success if you’re doing something where you already have knowledge and experience. If you once worked for a brokerage firm, starting a home based financial advising business makes a lot of sense. If you were once in sales and you became an Avon distributor, that has a higher probability of success as well.
You’re Doing it for More Time
Many people have the mistaken idea that working from home offers more flexibility and it some cases it does. If you’re working at home to avoid paying a babysitter or to work less hours, that is most likely not going to be the case. Most successful full time home based workers still hire a babysitter and their time isn’t more flexible because starting and growing a business is much more than a 40 hour a week endeavor.
And Don’t Forget…
Any business, home based or traditional, should be registered as an LLC or other business entity in order to shield your family assets from business assets. This is easily accomplished using a business registration service. This relatively low cost step could save you a lot of money should you be sued or audited.
Remember that a home based business is identical to a business away from your home. If you’re going to be an Internet marketer you should have marketing skills and experience. If you’re going to start a writing business, you should be an exceptional writer, and if the business you want to start was advertised as little work with a lot of reward, it’s most likely a scam. Home based businesses are just as difficult and take just as much time as any other.
They are also very rewarding to those who are disciplined and hard working enough to work without supervision.