What is a Small Business?
A Small Businessis classified as a commercial endeavor that is operated on a smaller scale than its commercial counterparts. Although there does not exist a definitive parameter with which to qualify a business as a Small Business, a
Small Business will typically retain an employee base ranging from 1 to 15 individuals; furthermore, a Small Business will typically report lower amounts of revenue in contrast with larger businesses and corporations – with regard to the classification of commercial activity as a Small Business, the following are common examples of Small Businesses:
A Home business can be classified as a small business; a home business operating as a Small business typically involves the formulation and accomplishment of a multitude of tasks taking place within the home of the founder
An Internet business can be classified as a Small Business; due to the fact that maintenance of an online-based commercial endeavor can be conducted through the Internet, offices and large employee numbers are not always required
What is an Online Small Business?
Since the development – and subsequent advancements latent within Internet-based commercial activitytaking place through the internet marketplace – of ‘E-Commerce, or electronic commerce, Small Business opportunities can includethe provision of products and services available purchase and delivery through online-based commerce; the following are some examples of the most common types of online-based Small Business activities:
Web design, domain management, online consultation, and marketing development
The production of freelance media; this can include editing, writing, proofreading and research conducted on a ‘per-project’ basis
The manufacture, production, sale , and management of products or services; in many cases, this type of vendor-based Small Business will act as a third-party between buyers and sellers
Types of Small Businesses
A Small Businesscan include the provision of products or services conducted using one’s home or residence as a base of operations or an ad-hoc office. Individuals who engage in starting a Small Business may utilize their homes in order to eliminate start-up costs with regard to commercial activity and business endeavors; the following are some common types of products and services offered by in-house Small Businesses:
Consultation services, event planning, analysis, and project management
The provision of educational workshops, classes, lessons, and instruction; these may be conducted from one’s home
Home-based product assembly, manufacturing, and management
Retail-based commercial activity; this includes, vending, resale, wholesale, and consignment
Small Business Taxation
A Small Businessis subject to any and all pertinent taxation requirements; a Small Business that maintains employees, provide benefits, and possess liabilities must satisfy applicable tax documentation:
IRS Form 8829: This form is used in order to claim any expenses that are incurred as a result of operating a self-employed, online-based Small Business conducted from one’s home or residence
IRS Form 1040: This form is a standard form used for filing taxes; line 30 on this particular form entitled ‘Schedule C’ allows the owner of an internet-based smallbusiness to substantiate profits or losses as a result of operating an online-based small business within the realm of self-employment
Schedule C – EZ: This form is designated for a Small Business operating from a home or residential base of operation(s) that reports business expenses not exceeding $50,000
