How Can I Start My Own Business While on Welfare?

There are a number of different service based businesses you can start while on welfare to improve your financial situation. If you have skills that are in demand from individuals or businesses, you can start a small business from your home with little to no investment. You'll want access to a computer and Internet for advertising your business, but most service-based businesses can be started from home on a tight budget. Once you've established a profitable business, you may just be able to go off welfare and enjoy being a profitable business owner.

Instructions

1. Know your income limits for the various types of welfare you may be receiving (food stamps, state health plans, SNAP, Temporary Assistance for Needy Families, etc). Welfare programs are regulated by state governments, and each state has different income limitations for eligibility to the programs. If you're unsure what your income limitations are to continue receiving welfare, contact the local Human Service Department located in the government pages of the phone book. If your business exceeds the income limitations, you will need to stop receiving welfare benefits.

2. Consider your skills and experience. What can you offer individuals or business owners that they need? If you have experience with graphic design, writing or web design skills, you have an opportunity to start a business with very little or no investment.

3. Operate the business as a sole proprietor using your own legal name to begin with, since you can do so without filing paperwork in most states, and without paying to start a Limited Liability Company or a Corporation. If after you've been operating your business for awhile it becomes profitable, you might decide to set up a separate entity and file appropriate paperwork for an LLC or Corporation.

4. Maintain detailed and accurate financial records for your business. Record each payment received and all business-related expenses. When applying for welfare benefits or re-determining eligibility, you will need to show your business records to ensure you are still within the income limitations to remain eligible for your welfare benefits.

5. Set up a website to showcase your work examples. You can use free web design or blog tools until you've earned enough money from your business activities to have a more professional website designed.

6. Advertise your business. Word of mouth is the most effective form of advertising, and best of all, it's free. Provide a couple of businesses or individuals with your services at no charge in exchange for testimonials you can use in your marketing, and for samples for your website.

Tips & Warnings

• Keep track of your business expenses and income carefully. When you are earning enough to no longer qualify for welfare, make sure you contact the appropriate office to notify them that you no longer need benefits.

References

• Entrepreneur.com: Start a Business Without Going Broke
• Welfareinfo.org: Welfare Programs and Benefits

Resources

• Sba.gov: Small Business Association
• Welfareinfo.org: US Welfare System
• Weebly.com: Free Websites and Blogs