Given the current economic climate around the world, finding a legitimate home based business to build a secondary income is more important now than ever before. Part of the reason for them becoming popular is because they are thousands of business opportunities to make money, while enjoying the flexibility, convenience and relaxation that comes from working at home. So what are some areas that you need to keep in mind when first getting started?Before getting carried away with launching your business and the enthusiasm that comes with a new venture, it is important to ensure that yours is a legitimate home based business. For this, it is necessary that undertake all legal responsibilities and complete all the official paperwork before you actually begin working. Putting off these processes can cause a lot of problems later and can cause great damage to your finances if your business runs into trouble with the tax authorities.Tax related concerns are of primary importance when it comes to running a business. The governments of almost all countries around the world offer a number of benefits to those individuals who choose to establish a business. Home based businesses are classified under the same category as those of small scale indigenous industries and most governments introduce special packages to encourage the growth of more such establishments. Hence, if you complete the legal paperwork appropriately and fulfill all legal requirements, you are eligible to apply for a number of useful schemes and tax cuts from the government.Many people starting a home based business are of the opinion that they do have to maintain their finance books meticulously if the income generated does not qualify under even the minimum bracket. This misconception is known to create a variety of problems later in the period of your business if the government comes calling. It is very important to document and provide your income statement when filing your yearly income tax. One suggestion is to use the variety of online available software like Quick Tax that can help you keep track year around of your books.Many companies face issues regarding liability and copyright infringements and as a result, can prove to be extremely problematic. To prevent against these, it is important to create a legally recognized identity for your business opportunity. Whether you register your venture as a corporation or a LLC depends on your situation, but registering the business early on is a must in order to safeguard your interests. At some point, your may need to seek the professional services of a professional accountant.Different states require different categories of licenses or certificates that authorize their legally approved right to conduct business and sell goods and/or services to others. As these laws vary from state to state, it is the business owner’s responsibility to find out whether the state requires a business license or a reseller’s certificate. For any of these documents, you need to apply to the government and the details regarding the same can be found out through researching online, visiting a government office or enlisting the help of a local business agency.After you find a legitimate home based business, ensure that you are aware of any local and federal tax laws that may impinge your home business. After that, I have found that most state and federal tax laws usually work to your advantage with the numerous tax deductions by having a home based business. In reality, the backbone of the economy is usually the small businesses of many countries.