Military Business Idea – After Divorce
After Divorce: Is it time to start your own small business?
If you have just singed your divorce decree or you have a pending military divorce, you might think it’s outrageous that we suggest you might begin making a list of military small business ideas.
But — this might be the time to do it.
Consider life’s major turning points where we tend to refocus and set up new goals:
- New Years Eve
- Marriage
- New Baby
- Children off to College
- Military Divorce
If you’ve had an entrepreneurship desire inside you, divorce might be just the motivator you need to get your small business started. Most likely, your income and financial savings have just been split. If you are the military spouse, it’s possible you have NO income.
By starting your own business, you can take advantage of some tax benefits which can immediately set off some of your expenses.
Here’s an example:
If you have no home business, you living expense (rent or mortgage) is 100% expense. Suppose your rent is $2,000 per month. Suppose you begin a home business and set up that extra room in your house as a home office. Let’s say that room is 10% of the square footage of your entire house so the business expense is $200 per month. Now your rent is essentially $1,800 because of the tax write off. That’s $2,400 a year ($200 x12) in your pocket.
How Military members Start their Own Small Business
We’ve already talked about a Veteran Owned Business and there’s no reason to stop there. Spouses can own businesses too.
The first decision to make would be the type of business you wish to own.
Do you want a retail store? Corporation? Sell on the Internet? Do you have a great idea for a new product or invention?
If you don’t already have a dream, try making a list of your passions, your experiences, your knowledge skills, things that frustrate you, and your fears. Look for a common thread in all of them. Look for solutions. The Military Spouse Business Association is another place to browse for ideas and tips.
For 2013, we’re going to share some stories of military servicemembers and spouses in business to give all our readers ideas and inspirations to paths you might take after divorce. These ideas can apply to both parties: servicemembers and military spouses; anyone who might be interested in some extra cash.
The initial focus will be on Internet home business opportunities because of their advantages:
- Set Your Own Schedule: With an Internet business you can set your own schedule
- Tax Write-offs: Owning your own business opens the opportunities for more deductions on your tax returns (which results in more money in your own pocket).
- Social Media Marketing: Using the Internet, you can quickly take advantage of social media networking
- Low Start-up Costs: You won’t need a loan to begin which is critical to divorcees looking to start anew
Get creative and put your passion to work.
While you ponder starting a business, you might try some books for ideas and inspiration:
Know a Veteran or Military Spouse with a Small Business?
Do you have a Veteran or Military Spouse small business owner success story? Post it in the comments below ~
Join our Military Spouse Business Group for entrepreneur news and ideas on part-time income.
Further Reading:
Military Spouse Business Academy
Good idea — the former spouses have to do something with all the unearned cash they get every month
I agree with “USFSPA Survivor”. Promulgating misleading and absolutely wrong information – like terming military retired pay as a “pension” – does nothing more than build a house of playing cards which will be completely collapsed with a fresh spring breeze of truthful facts, leaving just a useless pile of vitreol and egotistical selfishness !
Your “Example” (top of page) is misleading.
Granted, you can “write-off” proportional home business expenses on your tax return, however, that does NOT reduce their contractual cost to the provider which must be paid in full. “Writing-off” a deductible business expense ONLY removes your tax liability on that amount – it does NOT lower the amount due to the product/service provider !
In the example, the business should be writing a check to the contractual provider so you’re shifting your expenses, and your personal savings is $200 a month. Veterans and military spouses should consider owning their own business, no matter how small a company it is.
OK, in your terms, so write the Rent Check for $ 1800., instead of $ 2,000 – see what your landlord says ! – DUH !
They will tell you your Rent check is SHORT $ 200. ! ! !
Again, you are NOT “saving” $ 200./month – you are ONLY SAVING the TAX LIABILITY AMOUNT on that $ 200. – perhaps about $25.00, depending on your taxable income bracket !!!
Check with a RELIABLE ACCOUNTANT or TAX SERVICE ! ! !
You would give your landlord/mortgage company 2 checks, one written from your personal account and one from the business account summing together $2,000.
I agree with you that there is tax liability savings, but you can also shift your expenses from personal to business.
The main point of this post was “life after divorce” and the possibility for the service members and military spouses to explore the idea of beginning their own small business. (It wasn’t intended to be a tax-post, but to use the home office write-off as a simple example of a benefit.)
Those interested in taxes might look at Deduct it. It’s roughly 40% off today, Jan 16, 2013.
So, now you’re writing 2 checks, totaling $ 2,000 –
Where’s the $ 200.oo month “savings” you featured ?
If you’re the business owner, it’s still costs $ 2,000 ! ! !
Audit class “Life Skills” filling up fast ! Few seats left !
If your viewpoint is the business (Sole proprietor, LLC, or Corporation) and individual are the same entity, then the savings is only the tax liability.
If you view them as separate, any time you can shift personal expenses to business expenses, the result will be “personal” savings.
Cloudy semantics !