Work from home business is a booming type of business today. Many companies are looking to lower their overhead while many people are looking to save money by telecommuting and saving money on childcare, gas, work clothes, etc. There is the fear that work from home businesses are scams.

Just searching the words “work from home” will bring many results and many of those will not be legitimate work from home businesses. Work from home businesses can be legitimate, but the search for the work from home businesses that aren’t scams will take work. There are websites for work at home and stay at home moms that have sections regarding which work at home businesses are scams and which are not. Typically, anything that requires a payment up front is a scam. Any business that is a legitimate business will not require any payment.

So work from home business are they scams? The answer is: not all of them. With most of the work from home businesses out there, typically there is a requirement to incorporate or at least get a Federal Employee I.D. number because people who work from home are not considered employees normally, they are contract labor. There are several reasons why the companies choose to not officially hire work at home employees: the businesses don’t have the liability of having employees that they cannot watch over, they also don’t have to deal with the tax issues that come with having employees. This can cause problems for the person working from home because they then have to worry about the federal tax issues and will need to make sure that they plan for the future and especially tax time by putting money aside in order to pay taxes from what is earned.

Other things to think about when investigating work at home business and if they are scams: -Investigate the company that is offering the position. Make sure that they have a physical address and phone number, check for negative reviews on different search engines to ensure that the company is legitimate. -Be leary of incredible claims, i.e. “I made $1000 in one week via X Company!” These are not real. Most legitimate work from home businesses will give estimated hourly wages or how much is earned for each item completed. -Be patient because many of the businesses that are legitimate are being inundated with applications. It can take anywhere from 4 to 6 weeks to have an application be accepted and begin whatever certification process that the company wants you to complete. -Check work at home forums to find out where people are having the most luck getting work and where they have had bad and good experiences.

When looking for a work from home business a good question to ask yourself is, “are they scams?” because the last thing a person who is looking for legitimate work needs is to be scammed out of money.
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