Many full time employees start their own home business on the side as a tax benefit. This is perhaps the most compelling of the 5 benefits of owning a home business. In the first two years of any business the chances of turning a profit are almost nil. These first two years the business loss, and the right to claim home office tax deductions, can lower a tax bill considerably. It can even mean the difference between owing the IRS and getting a refund.

Hundreds in the US alone have started their own business in the last two years, as the economic downturn left them without job prospects. Their entrepreneurship did not guarantee the income and steady paychecks of the jobs from which they were laid off, of course. For many, however, it was an opportunity to fulfill a life long dream. For others it offered a way to bolster their resume with new skills and management-level experience.

Working at home, whether at a home business or as a virtual employee for someone else, saves money. It eliminates the costly daily commute, fees for parking or mass transportation, money spent on business wardrobe and dry cleaning, and doctor bills and unpaid sick time off when co-workers bring their germs to the office. However, you need to make sure that your work place at home is conducive to work wherein you’ll be more productive by staying at home rather than it hurting your business. Setting up a home office is one way, especially if you have a segregated desk, computer, desktop business card holders and some business card examples.

A home business environment is a time saver and a productivity boost Time not spent on a long commute can be spent in producing more, selling more and making more money. These then, are the five benefits of owning a home business: Realizing tax benefits; fulfilling a dream; bolstering a resume; saving money; increasing income.