Once you onboard you will be so busy taking pictures, hanging up items, taking inventory etc. You need to be ready before you onboard. Have you thought about how you are going to keep track of everything for tax purposes? I'm not a tax expert but my tax guy told me a few things I will share with you. I knew about most of what my tax guy told me but a few things I didn't know about so I thought I would share some of the important things he said here.
1. Have a LuLaRoe Consultant Bank Account, separate from your other accounts. It looks really bad if you transfer money a lot between accounts. You can even go to jail for money laundering. Look it up, he told me a story of an elderly couple who were just transferring money between their regular accounts and got arrested and sent to jail for money laundering. Crazy huh? ☺ I haven't had time to look it up since he told me this but he scared me enough to make me realize I need a separate account from my regular bill paying and my regular personal account.
2. Keep track of your vehicle receipts for everything like gas, oil changes etc and track your mileage. Google maps is helpful for mileage tracking. Your tax person will help you decide at the end of the year which is a better deduction, mileage or the vehicle expenses.
3.Keep track of your receipts for refreshments (for your open house launch and your in home Boutique pop ups). But it's easier for your tax person if you don't buy the refreshments when you buy your regular groceries. Maybe do two transactions at the store? Just keep track of anything for your business even things like serving food and drinks to guests.
4. Keep track of what you buy for inventory and what you still have at the end of the year. If you bought 58 Julia's with your initial order and you still have 15 of them at the end of the year, you cannot put down the amount of purchasing and selling all 58 on your tax form. You will have to figure out how to keep track. If you sold all those Julia's and have more in stock then make sure you have those accounted for and discuss them with your tax person. Some people use a numbering or bar code scanning system, others use Audrey to track inventory sales or another way of keeping track.
5. You can deduct the space in your home that you use for your LuLaRoe Room or Boutique. It's the percentage of the space in your home. If you use 15% of your 1500sq ft home for LuLaRoe then you can take a deduction of 15% of your utilities on your tax return. Redecorating that LuLaRoe space is also deductible if it was done for your business.
6 If you need internet to run your business then that is deductible too. Your phone bill and any office expenses you need.
7 All supplies like your racks, and shelving are deductible if they are only used for your LuLaRoe. Your office supplies, shipping, picture taking etc supplies are also deductible.
I think this is enough info to get you thinking about tracking your expenses and how you are going to do it. You can use apps that scan receipts, scanning the receipts with a scanner, a spreadsheet, etc. You just need to keep everything and then discuss it with your tax professional at the end of the year or each quarter if you choose to file quarterly.
I was told to hold back 35% for our tax bracket but you will need to ask about your tax bracket and how much you should hold back. You might not need to hold back 35% but it's better to have too much saved for taxes than not enough.
Please consult your tax professional for information regarding your taxes.
It's soo exciting knowing you are joining the world of LuLaRoe and it's hard to wait for your name to come up in the queue. But having soo much to do to prepare makes the time go by soo much faster.
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