Tag Archives: tax

Own Business Taxes

September 22, 2011

own business taxes

Some Business Tax Tips For 2010

Keep in mind that I am not a CPA nor am I a tax professional but I am, like many business owner, facing a lot of confusion in this arena; especially given the last two plus years of financial distress in the country and the constant changes to the tax code to generate more state and federal income.

Properly managing for taxes can really help a business survive from one year to the next. Don’t get blindsided by your tax obligations and fatally hurt your business.

First things first: Understand how your form of business organization will be taxed. Some forms of organization are pass-through entities where all business income flows through to the individual owners’ personal tax returns (regardless if actual cash makes it into personal bank accounts) like partnerships, S Corporations and sole proprietorships while others are taxed as if they are separate, individual entities like C corporations.

Also, while not covered here, business owners must also understand their state tax requirements. Some states have similar tax policies to that of the federal income tax, some states only tax certain income like capital gains from the sale of assets and some have completely different tax regulations where they only tax business asset values – but not income. Thus, know your state.

The first thing a business should do is attempt to reduce its taxable income. This can come in the form of taking additional depreciation on business assets – look into the expanded Section 179 Deduction – or from charitable contributions (make sure that the net effect benefits the business) or even from just realizing all business expenses that can be taken prior to the year’s end or the filing deadline (if permitted).

The following are some of the top issues businesses will face this tax year:

Employees vs. Contractors. One of the biggest issues that businesses face is determining if a person is an employee and subject to taxes via the business or is an independent contractor responsible for their own taxes. The IRS provides detailed information on this subject. But, as a business owner, you do not want to have to make up for all the payroll taxes of a person who you thought was an independent contractor but the IRS deemed an employee simply by how that person was treated in the business.

Schedule K-1s – those, like LLCs and some partnerships and many S Corporations must provide accurate Schedule K-1 to the IRS. The main issue here is to match those schedules to what partners, members and owners show on their individual tax returns.

W-2s – it is the employer’s responsibility to file W-2s with the social security administration showing total wages paid to employees. Further, those businesses with more than 250 employees MUST file their W-2s electronically.

Smaller business owners, earning less than $48,800 may qualify for the Earned Income Tax Credit (EITC).

Spouses. Many small businesses are operated by husband and wife teams and the IRS, depending on how each spouse is treated in the business, may tax these spouses differently. Some will be treated as partners or owners while other can be treated as employees (requiring the business to account for and pay Social Security and Medicare on their behalf via their payroll – regardless if your business generates payroll or not).

Lastly, regardless if you can pay your tax obligation or not, you should always file your business tax returns. This will go a long way in ensuring that these taxing entities will work with you not against you; especially if they think you are trying to avoid paying your taxes.

Some Helpful Resources:

Score offices, SBA offices and Small Business Development Centers – all of which are free to use and offer classes and seminars conducted by local tax professionals.

The IRS website which provides useful information for nearly every business tax issue as well as offers webinars that cover some of the most common tax issues for businesses.

Local state sponsored resources. The IRS and many states have local offices in and around major cities in every state. These offices can be visited in person or via the phone and internet.

Lastly, the IRS, via its website, offers numerous ways to file for free should your business not be too complicated. Visit the IRS’s website and look for the Free File Logo.

Day 24 – Personal Financial Management with Sandy Botkin

own business taxes

own business taxes
I am thinking of Starting My Own Business, what kind of taxes will I need to account for?

I will be starting this business in Ohio.

you should find correct and complete answers on this site :

http://us.smetoolkit.org/us/en/content/en/2198/Payroll

good luck

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Should I Start A Business

May 17, 2011

should i start a business

Ways To Start A Business With No Money

The question of how to start up a business without any money is becoming a lot more prevalent these days.   As financial conditions have become more difficult, a lot of people are considering ways to either make additional money or break free from the uncertainties of the job market completely.    Regrettably, these same financial difficulties have left them with little disposable income to work with as they start their business enterprise.

It is my hope to give you some ideas of how to begin a business without any money.  When attempting to start a business with limited resources, it is crucial to honestly evaluate the question of what you have available to work with.   This is not merely a financial question, but it also looks at the other resources available in your life.  This would include things like time, skills, talents, networking connections, etc….    When money is limited, these other resources will generally be the pool you draw from to build your business.

There are three basic areas a person might explore as they consider starting a business without any money.   The first option is to create a business for yourself based around a skill or service that you could make available to others.   It is from this concept that many lawn care, custodial, house cleaning and other such services come about.   Other outflows of this possibility would include such things as freelance writing, photography or other contract services.   The primary advantage of this type of business is the fact the person providing the service is the recipient of all income generated from that business.    The primary disadvantage is that their is a high degree of sweat equity involved in getting a business of this type up and running.   Since there is no established presence these businesses are often started through the door to door distribution of fliers or through the existing network of contacts that an individual already has.

Another commonly used approach to answer the question of how to start a business with no money is affiliate marketing.   Affiliate marketing involves the marketing of products or services on behalf of another.   In recent years many larger corporations have moved to an affiliate marketing model as a major piece of their overall marketing strategy.   In this type of business there is typically no cost for becoming an affiliate of the vendor and compensation is earned on a commission basis as the affiliate produces sales volume.   This type of business is commonly seen online and has been successfully utilized by thousands of people.   The advantage of this type of business is the low start up cost and the broad market potential when this type of business is undertaken online.   Some of the disadvantages include the fact that income is based on the personal sales of the individual.   Another disadvantage is the sheer number of competing affiliates and the necessity to set yourself apart from other affiliates.

Network marketing is another option that many look to when looking at how to start a business with no money.   Like affiliate marketing, network marketing involves the sales of a vendor’s product through individual marketing efforts, most specifically the personal networks of an individual.   Start up costs on a network marketing business traditionally run between ten and five hundred dollars.   The long term success of a network marketing business will depend upon the individual’s ability to develop a personal sales team of their own.   The advantages of this type of business are the marketing systems that most companies will generally have in place for their distributors, the personal development training offered by these companies and the opportunity to earn income off of the efforts of others.   The disadvantages are the high degree of interpersonal contact required to be effective and the need to create a unique identity apart from the other distributors who are marketing the same type of business.   As a side note there are some compensation plans that are more conducive to creating income in a shorter period of time.

If you are considering how to start a business with no money, these are just a few suggestions.  It is important to note that some of the greatest businesses in existence came from ideas generated in times of scarcity in the entrepreneurs life.

DJ Divine: “How Do I Start DJing?” Q&A

should i start a business

should i start a business
How can I be so rich business woman;without taking any help of my parent?What kind of business should I start?

I’m 24y of unemployed lady.I want to start a business,without taking my parent’s money or help,whatever.I don’t understand,what kind of business I start! & how can I start it independentlly.
I want to start a business,which is given me a money,becouse I just want to show my parent’s that I also doing business without taking any help.
My friends of yahoo,will you help me,from getting me out from this problem?can I get any loan bank?If so!How can I be?
please help me & give me some good advise.

+ Start out really small with something very simple that makes cash money while you are still at home and can save up a little for your real investments(your company). The chances of a bank loan or any loan are kind of slim. For the most part, (in my experience) banks don’t want to loan you money until you no longer need it. I have been in business for 6 years Changing Air-conitioner and heater filters and I have no bank loans. Now all of a sudden they want to loan me money and I can just pay cash and they get no interest so why should I bother. All it cost me was about $150 for brochures, a couple of boxes of the most popular filters, a screw driver, a pad of paper to write down what sizes to order every year, and list the customers that I personnally visited to start my business and the date that I changed the filter so I could come back the next year.

There are some business that require little to start. A photo business (if you have a camera), a cleaning business (if you have a bucket of cleaning stuff), a personal at the customers home or work car cleaning business, shovelling snow, raking leaves, cleaning windows.

If you can take a picture of your work at each location so that you have a history, as the key will be repeat business. If you are successful you could sell the business and the contacts to someone else that wants to start something in a year and then you have your seed capitol, or sell all but 10 or 20% of the business and let them pay your on time and when it is all paid off they can give you that (that you still own) percentage on a monthly or annual basis as a part owner for as long as the business continues to exist or if they want to sell it, you could continue as a part owner and collect your percentage in full at the time of the sale, but they all take time and continuous effort and there are very few that can come into big money fast and easy and not owe either big favors that you may regret, or substantial sums of money that you may not wish to repay.

Keep your long term goals in mind, and follow a dream of something that you really love to do as most likely you will do it with all your heart and be the best you can at it. If you start a cleaning company and sold it to someone while retaining partial ownership you could have them as a subcontractor of yours at a considerable discount later. (think about it and where you want to finally get to)
I like your initiave
Good Luck

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What I Need To Start A Business

May 2, 2011

what i need to start a business

FACT: TV Ads Bring in Customers!

When it comes to advertising your business, you cannot find a better medium to do so than television. Television commercials do reach large numbers but it is not a guarantee they will all be interested. When you target your advertising to certain stations, the number of potential customers you can reach increases dramatically. There is little chance someone watching basketball on the sports channel will also be interested in a cleaning supplies commercial but place the same ad on a housekeeping channel and your luck might just turn around. Go to this site for further information on tv advertising.

 

Although it is pretty pricey a TV advert can be just what your business needs to get a leg up. Granted, sometimes cost is the deciding factor, but if your business can afford television advertising, oftentimes it will pay for itself in new customers quickly. The actual television advert cost is not the only thing to worry about as price of making video adverts along with airing frequency and timing also deserve some attention.

 

People are attracted to TV advertising because nothing creates a bigger impact than a video of something. People enjoy watching the actions and seeing the colors and hearing the sounds on TV. Great TV adverts easily turn into cash cows so they are definitely worth the effort and expense. Products advertised on TV are exciting since there is color and movement to them unlike a regular black and white print advertisement.

 

It is not that hard then to grasp the concept of TV advertising being beneficial. You will gain a deeper understanding about tv advertising price by checking out that resource.

 

1. Targeting viewers of certain programs on particular networks for your ad will get you more potential customers. 2. Active adverts almost always trump their static counterparts. 3. Television shows run all day so there is always someone who will be able to catch your ad aired.

 

Part of effective business promotion is advertising on the boob tube. Dig deeper to learn if advertising on TV is a suitable option for your business.

How To Start An ATM Business? Want High Profit? A Business Idea For You…

what i need to start a business

what i need to start a business
What do I need to start teaching Business classes?

I have my Bachelor’s degree in Business Administration with a concentration in Marketing and I would love to get into teaching. I have always had a passion for teaching others and would love to use my degree to get into that. Do I need credentials to get into teaching business or what options do I have without having to go through the credential process? It doesn’t need to be formal classes, just a way that I can help others.

There aren’t a lot of high schools which offer marketing classes, I’m afraid. Accounting and Economics are pretty common, but not Marketing. If you were to get an MBA you could teach part time at a community college, but probably not until you had a few years of professional experience as well, since Marketing is a particularly professional subject matter and you would lack credibility unless you had done it for a living.

If you really want to do this full time, you might think about going on for a Ph.D. You would probably be expected to do research, not just teaching, but there are great opportunities right now for marketing professors.

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Forms For Starting A Business

April 4, 2011

forms for starting a business

Start Up Business Loans – Start Up Your Dream Business With Start Up Business Loans

Most of the people aspire to become rich men and they know the only solution to become rich is through business. It is because business leads to big friend circle and the network of friendship has no end. You can spread your business not only in your locality but also outside or even overseas. But the only concern of these types of people is the insufficient cash. Due to lack of money they stop dreaming to become rich. At this point of time you can seek start up business loans from various online web portals. These types of loans are quite famous in assisting finance when you require Starting Up A Business.

You have to go through a very simple and delicate formula to obtain the cash for your business purpose. Fill the online form and submit it giving all the pertaining details. The submitted application form will go through a verification process by the lenders. In case you are suffering from bad credit record status (arrears, insolvency, default, CCJ, IVA, missed payment, skipped payment and late payment), still your form for loans will be having no problem. You will be sent a secret PIN code as soon as the verification process is over. Using the particular secret code you can ask for loans according to your requirement.

These types of loans are available in secured and unsecured way. If you want to have huge money, then choose secured loan service as you will be pledging some of your important assets as collateral against the loans. The collateral could be your house, car, bike, gold and other valuable properties. Apart from that since you are pledging something for the loans, you will be charged with very reasonable rate of interest. You will not face any kind of impediment while repaying the entire loan amount along with the rate of interest.

On the other hand, unsecured loans allow you to go for the loans without any kind of collateral. This particular feature attracts the borrowers to always choose unsecured plan. But one thing that you have to keep in mind that in unsecured plan you will be charged with little bit high interest rate. But that will not affect much on your status.

So, why are thinking so much? Stop pondering over such matter and get hold of Start up business loans and make your dream come true.

Starting a Handbag Business : Starting a Handbag Business: Order Forms

forms for starting a business

forms for starting a business
Are these all the forms I need for starting my online business?

I’m starting an online business and am going to form a single-person LLC. I’ve read around the Indiana state’s website a bunch and I believe these are the only forms I need:

–LLC formation form (http://www.in.gov/icpr/webfile/formsdiv/49459.pdf)
–IRS website to get Employer ID Number (Federal Tax ID number to collect sales tax for in-state sales, http://www.irs.gov/businesses/small/article/0,,id=102767,00.html)
–BT-1 Application for a Resale/Retail Merchant Certificate (so items can be bought from wholesellers tax-exempt, http://www.irs.gov/businesses/small/article/0,,id=102767,00.html)

Can anyone think of any other documents I might need to fill out? I know Yahoo answers doesn’t substitute for legal advice but I’m hoping someone out there has formed an LLC before and might be familiar with the process.

I recently filled out forms for a 1 person LLC in Ohio. I needed 3 forms: Name Registration; Organization_Registration of Limited Liability Company; and an Employer Identification Number.
The first two are on your state’s website. The EIN is on www.irs.gov.
Jennifer
The Business Assistant, LLC
www.businessassistant.org

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Why Own Your Own Business

March 22, 2011

why own your own business

Home Based Internet Businesses – What Choices Do You Have?

Network marketing internet businesses are extremely attractive businesses to have. They are low cost to build and are therefore low risk for the entrepreneur. Low capital invested means less money to risk. And whereas most home entrepreneurs set up one business, entrepreneurs who work via the internet generally have many home based internet businesses. That’s because home based internet businesses are simple to begin together with cheap to set up. Home based internet businesses run themselves and so once you have a good one going it’s time to move on to the future one.

Home based internet businesses are often very low key under this radar type businesses. Now of course if you want to concentrate on one major business you may do so on the net as well. But that takes quite some skill and commitment and lots of people who are new to making money on the net tend to concentrate on setting up quite a few small home based internet businesses rather than one big one.

There are numerous advantages of lots of small homebased internet businesses. It isn’t hard to build small home based internet businesses and so it can be done rapidly. Many people who want to work from home in more traditional businesses know that it takes forever to set the business up, as well as costing (and therefore risking) a bunch of money. However most home based internet businesses can be set up in less than a week or two once you know what you are doing.

And having many home based internet businesses means you can spread the risk. That’s not the financial risk because, as we’ve recently said, the financial risk of setting up a string of home based internet businesses is exceedingly low. But there is always the risk on the internet that i really enjoy seeing out of your control your small internet business will disappear off the radar screen and the volume of visitors it get drops right off. As more visitors equals more profits, and less visitors equals less income, you don’t want your visitors to help disappear. But if you have many small home based internet businesses as an alternative to one big one then if one falls over you have more going that’ll push on.

And most small home based internet businesses don’t earn a ton of money. Most good regular businesses earn a full time living from that just one business. That’s not so easy on the net. It’s much easier to build a small internet business that brings in maybe $2 to $5 daily. That doesn’t sound like much but if you can set up one that adheres to that in, say, a week, then just allow it to run on autopilot and move on to the next one.

Once you have, say, 20 small home based internet businesses that adheres to that then you’re starting to earn money! And if you have 20 then there is absolutely no reason why, if you keep working at it, you can’t have 50, or 50, or 60. And each one of these small home based internet businesses keeps working away available for you 24/7/365. While you sleep, or go on holidays.

Are small home based internet businesses noticed that you sound attractive to you now? If so you would be joining a growing band of those who find themselves discovering the joys of making a living online with small home structured internet businesses. Give it a go, it works.

Follow Your Dreams (Best Business Motivational Video)

why own your own business

why own your own business
what is the best part of starting and building your own business and why.

Well, I think the best part is the thrill of an adventure of the unknown. Being able to include my family and my children. Giving the kids a few “jobs” so they feel important and a part of the family business. As far the best part of building it as each step of building a successful business the income increases and continues to do so. The family as a whole feeling the accomplishments achieved and doing it together is the best part I believe.

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