10 tips for starting a home business

You will need to pay estimated federal taxes on business income each quarter, instead of once a year on April 15. Depending on the location of your business, you may be required to pay state

and local income and business taxes, too. Go to the IRS Self-Employed Individual Tax Center to learn how to pay the federal taxes. You may also want to consult with your accountant. 4. SET

ASIDE A PRECISE PLACE FOR WORK You should be able to take a tax deduction for 100 percent of costs directly related to your home office, such as the purchase of a work computer or printer

toner. The other kind of tax-deductible home office expenses are “indirect” ones that are prorated, based on the size of your home and office. These are things like your mortgage or rent,

insurance and utility bills. Many people with home offices skip the tax break because they’re concerned the write-offs will trigger a tax audit. That’s unlikely. In general, to get the

deduction, the area must be used for work _exclusively_ and on a regular basis, either as your main place of business or a location to meet with clients or to do paperwork, such as billing

and ordering supplies. That means your kids can’t play games on your work computer when you’re away, and your spouse can’t set up the new elliptical machine in the home office space. To get

the deduction, you must file Form 8829, "Expenses for Business Use of Your Home." For full details, go to IRS Publication 587. Generally speaking, if the square footage of your

home office equals 10 percent of your home's total, you can claim 10 percent of its expenses. The IRS also has a “simplified option” rule, which allows you to deduct $5 per square foot

of your home office on your return, with a maximum write-off of $1,500 (based on a maximum of 300 square feet). It’s a good idea to take a picture of the space so that you have a record, in

case the IRS does scrutinize your return. 5. ESTABLISH A WORK SCHEDULE It’s easy to get drawn into work filling every waking hour. You must be disciplined, manage your time well and be a

self-starter. Set daily work hours and do your best to adhere to them. That’s easier said than done, but burnout will do nothing to boost your business. 6. FIND A MENTOR Working solo can be

isolating. Sometimes you’ll need a professional to tap for some advice. Look for a mentor among your industry connections. This relationship can take time to build, but it’s worth it.

Another option is to find a virtual colleague. PivotPlanet, an online mentoring service, lets you connect with its expert advisers via one-on-one video and phone conferences. It’s designed

to help shape a relationship that can evolve over a series of sessions at regular intervals or on an as-needed basis. These meetings are billed hourly at rates of $40 to $125.