For most people, the dream of becoming a model or a social influencer doesn’t move much past that. A dream. And this is reasonable, given that it is no easy becoming either of these things. However, if you are insistent that you are the next big thing to hit the social media scene then below are some tips to help create a serious business and take advantage of tax deductions.
Register Your Business
The first step that you need to take towards getting serious is to get serious! This means that you should register yourself as either a business or a private contractor. Either of these registrations is the first step towards taking your hobby into a career. Once you have completed all of the required paperwork and paid the necessary fees, it’s time to move forward.
Save your Receipts
During your forays into the social media world, you are going to come up against a number of expenses. While there will obviously be expenses which you can’t claim against your new business, there are expenses which you may, such as:
- Hair Care products
- Hair Styling Products
- Makeup Remover
- Internet Access (apportioned)
- Computer/Laptop (apportioned)
The last two are apportioned, which means that as you aren’t likely to use them entirely or your business, you can’t claim their entire expense, and much instead apportion them out between the time you spend working using the equipment and the time that the equipment can be considered a personal item.
While there may not be many opportunities when you are just starting out, as you begin to amass followers there will be times where you will have the opportunity to travel and take advantage of sites like the Groupon Coupons page for the Best Of Orlando to keep you entertained you travel.
In addition to the flights and accommodation which you will need to pay, there may be another deduction which you can include on your tax return, such as any dinner and entertainment costs should be meeting with clients or potential companies which you hope to work with.
When the time finally comes, be sure to have all of your receipts organized and ready for any audits which may take place. To make it easy, look for systems which can help you keep your receipts in similar items to make it easier for anybody who needs to see your files.
While the above information can all seem too good to be true, with the thought that you won’t ever have to pay for makeup again, it’s important to remember that you still need to run a business. This means that you will need to put time and effort towards your production and not just upload silly videos of yourself to your Instagram account. If you are claiming deductions, be sure that you are running a legitimate business, even in the early stages and now just doing it for fun.