MLM and Network Marketing People - You Need to Know By Jane Quade At Isnare.com Ezine Articles

If you're running your own business out of your home which includes MLM companies, Network Marketing companies, Direct Sales companies or any type of employment where you are deemed self- employed, then it is your duty to be current on Internal Revenue Service, IRS, rules and codes that apply to the self employed.

This is not an area that you should rely on others knowing what to do. You are taking control of your business so be certain that includes taking control of your taxes. The small business laws set out by the IRS are there to protect you and your business. They also give you all the best tax advantages, especially when your business is fairly new.

The following is a brief summary of what you should know and what you really need to know regarding the IRS and how it views the MLM - Network Marketing – Direct Sales industry.

Network Marketing has long been recognized as an extremely important industry by the IRS. In the year 1982, the IRS specifically recognized the independent contractor status of direct sellers. Subsequently, the IRS issued a number of materials addressing the issues of self-employment workers and home-based businesses. The IRS specifically addresses the issues of network marketers in IRS Publications 911. Please refer to the Tax Guide for MLM and Direct Selling

MLM Reps, Network Marketing Associates and Direct Sales Distributors: Here are some very interesting facts that will give you a much more broad perspective on this industry.

1. One in ten thousand households in the United States has a direct seller.
2. There are approximately ten million network marketers in the United States alone.
3. Sales of the Network Marketing industry in the United States are in the $20 billion range.
4. About sixty-five percent of direct sellers area female and thirty-five percent are male
5. For most people, Network Marketing is only a part-time activity.
6. Approximately 80 percent of networkers work part-time, less than 30 hours a week earning less than $500 per month
7. Network Marketing opens doors for everyone, regardless of his or her socio-economic background
8. About five percent of Network Marketers are senior citizens
9. Approximately 8 percent of Network Marketers have physical disabilities
10. Thirteen percent of Network Marketers are African-American
11. Five percent of Network Marketers are Hispanic, and lastly,
12. One percent of Network Marketers are Asian.

Here are the top five reasons that people join MLM - network marketing companies:

1. I like and believe in the product and or services offered by the company (90 percent)
2. I enjoy being my own boss and not relying on corporate America for my future (73 percent)
3. I like working at home and having complete control of my schedule and my life (64 percent)
4. The harder I work, the more time I put into my business, the more money I make (54 percent)
5. I enjoy selling the product or services offered by my company (49 percent).

In summary, be certain to hire a tax preparer or accountant that is well versed in the updated rules and codes of the IRS that are related to Direct Selling which includes most MLM and Network Marketing Companies.

If you are serious about growing your home based business, and are serious about securing a future for both you and your family, check out some more great free information at Free MLM Success Report

Thank You for taking the time to read this article.

Jane Quade
Home Business Specialist

Published At: Isnare Free Articles Directory http://www.isnare.com
Permanent Link: http://www.isnare.com/?aid=355986&ca=Marketing

Important Notice DISCLAIMER: All information, content, and data in this article are sole opinions and/or findings of the individual user or organization that registered and submitted this article at Isnare.com without any fee. The article is strictly for educational or entertainment purposes only and should not be used in any way, implemented or applied without consultation from a professional. We at Isnare.com do not, in anyway, contribute or include our own findings, facts and opinions in any articles presented in this site. Publishing this article does not constitute Isnare.com's support or sponsorship for this article. Isnare.com is an article publishing service. Please read our Terms of Service for more information.