Fulfill your own potential, and save money by doing it the right way.

Welcome to America-the land of opportunity! An awakened entrepreneurial spirit can be the greatest asset in your pursuit of happiness. Start a home-based business, and unlock benefits of both the obvious and hidden varieties.

You're the CEO

The biggest reason to be your own boss is that, well, you're your own boss. You won't be a corporate slave under someone else's whip and whims, and you're free to take the business in whatever direction that makes sense to you. Add in the 30-second commute from the kitchen to your office, gas savings, and avoiding rush hour traffic, and it's already a pretty sweet deal.

These are the most obvious positives. There are serious tax savings in a home business, too. That's why it's well worth the time and effort to do your homework and get everything set up properly.

Basic home office needs

First, allocate a room to be your place of business. (A computer in the bedroom won't do.) Tax laws (and your own sanity) require a dedicated space somewhere in your residence, separated from the hustle and bustle of your household. It doesn't matter whether it's a whole room to yourself, a loft space tucked away at the top of the stairs, or just a desk behind a simple screen in your family room, as long as it works for you. Then you can deduct a percentage of your rent or mortgage interest from your taxes for that space.

Medical expenses for you and your spouse are 100 percent deductible under the business, and you can "hire" your kids to get the same treatment for them, if they're at least seven years old and can help out in some way.

Respecting your space

Make sure that your family understands that you're working, even if you're right there at home. Set up business hours and stick to them, complete with lunch break and a vacation schedule. Being available for the odd household chore or pet-emergency cleanup might be nice for your spouse and kids, but it isn't very productive, and hardly a professional way to run a business. Uncle Sam might not mind, but your profits will suffer.

The separation between business and family should be easy to maintain. Just make sure that it's a good fit for the home-based business model, and that your local laws and regulations allow it. Some communities don't like customers streaming though their gates, for example.

Final tips

Get set up to accept credit card payments through a local bank, or one of the many online providers. Open a separate bank account and credit card for your little company to make it easier to report income and expenses come tax time, and to better run the business.

Once you're all set up, enjoy the fact that no matter what happens, you're the boss!