Tips to Make Extra Money at Home

Want to do what you love and make some extra money on the side? Money Girl has the trick to creating your own home business—and even launching a new career.

Laura Adams, MBA
5-minute read
Episode #265

How to Launch a Home Business

When you launch a business, it’s important to keep good records so you can claim a tax deduction for allowable business expenses, like equipment, computer software, auto expenses, and office furniture.

While you don’t have to have a separate business checking account right off the bat, it’s a good idea—especially if you’re not a great bookkeeper. But first, you generally have to file a fictitious name form with your state if the business will have a different name than yours. Just ask your bank what’s required.

You can operate your small businesses as a sole proprietor without having to complete any legal forms. However, being a sole proprietor means that if the business gets sued, so do you. To limit your liability and protect your personal assets you can incorporate, which means that a business lawsuit would only put the assets of the business in jeopardy.

You can learn more about the paperwork you need to incorporate at sites like Rocket Lawyer or LegalZoom or by consulting with an attorney. 

No matter if you enjoy working with technology or people, it’s a great time to start a business that helps you diversify your income, expand your career options, follow your dreams, and earn more money.

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More Articles & Resources You Might Like:

How to Find a Second Source of Income

From Employee to Self Employed

How to Save for Retirement Without a 401(k)

Taking Home Office Deductions

Start a Home Business With 6-Figure Potential – audio interview

Woman on Computer image from Shutterstock


About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlersbook is her newest title. Laura's previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.