Best Practices for January - Understanding Taxes Concerning Your Business

We can all think of many great reasons for becoming an IBO. There many wonderful benefits to talk about with prospects who are considering their own business with the IBO Compensation Plan Powered by Amway. Our Best Practices specify that while we can share many benefits as motivation for becoming IBOs, we cannot encourage people to start their own business purely for tax benefits.

The IBO Compensation Plan (Plan) powered by Amway offers a great opportunity to make money, own a business, meet new people and use and merchandise premium products.

The Plan is not meant to be a source of tax benefits or relief, and it should not be confused with unscrupulous tax avoidance promotions. It is a violation of Amway Rules of Conduct to promote tax benefits to prospects as a principal reason for becoming and IBO.

While there are provisions in tax laws that assist small business owners, no one should encourage a prospect to start a business in order to be able to deduct various personal living and travel expenses from their income. The tax laws are in place to help those who operate their businesses with the honest objective of earning a profit. With proper record-keeping, IBOs can deduct most ordinary and necessary expenses incurred in the operation of their businesses. The IBOAI website contains some resources that IBOs may find helpful in this regard. We do, though, recommend that in addition to the advice available from the IBOAI and Joe DePetris and his "Bookkeeping 101", that you contact a qualified tax advisor for specific guidance about your personal situation.

We know that all of you are following the above practices and we applaud you for building a profitable and balanced business!