The Benefits Of Incorporating Your Business
What do General Motors, Microsoft, AT&T and many other major businesses in America have in common? They're corporations. A corporation is a separate legal entity that functions separate and apart from its shareholders or owners. You can incorporate on your own without an attorney, although it wouldn't hurt to seek legal advice. And you can incorporate in your home state or any other state of your choosing. More than half a million business entities have their legal home in business-friendly Delaware, including more than 50 percent of all U.S.
publicly-traded companies and 58 percent of the Fortune 500. Nevada, New York, California, Arizona and Florida are also magnets for businesses wanting to incorporate. Protection Against Personal Liability Incorporating offers a variety of legal and tax advantages. For one, it's one of the best ways a business owner can protect his or her personal assets. As a separate legal entity, a corporation is responsible for its own debts.
Shareholders of a corporation are generally not liable for the obligations of the corporation. Therefore, creditors of a corporation can seek payment from the assets of a corporation, but not the assets of its shareholders. This means that business owners can conduct business without risking their homes or other personal property.Tax AdvantagesMany businesses choose to incorporate for tax advantages. Corporate profits aren't subject to Social Security, Medicare, workers compensation and other taxes, which adds up to 15.3 percent in taxes. An individual proprietor would need to pay all of these taxes, commonly referred to as "self-employment taxes" on all income earned by the business.
But with a corporation, only salaries are subject to these taxes.C-corporations provide even greater tax flexibility when it comes to profits. By simply dividing income between the corporation and the shareholders, businesses can save thousands of dollars each year on taxes. With a C-corporation, the first $50,000 in profits is taxed at only 15 percent -- plus, there are no Social Security or Medicare taxes. If you incorporate in a tax-free state like Nevada or Delaware, there are no state income taxes. Therefore, if you're in the 28-percent tax bracket and shift $50,000 of your personal income into a corporation, you could save about $14,000 per year.
(This figure includes the money saved by not paying social security and Medicare taxes).Corporations also enjoy the ability to deduct business operating losses. In fact, they have very few restrictions on operating and capital losses. You can generally carry losses back three years forward for 15 years. But sole proprietorships have stricter rules. They're also subject to a higher probability of a tax audit if there are losses.Speaking of audits, that brings us to another benefit of incorporating.
Corporate returns have fewer "red flags" than individual returns. Consequently, the IRS conducts fewer audits on corporations than individuals. Fringe Benefits and Other Deductions Corporations also enjoy a variety of fringe benefits and other deductions. A corporation can set up a 401(k), for example, that would allow you to exclude a higher amount of income than a regular IRA. And employee savings may also be doubled with a corporate matching program.
Corporations also can deduct 100 percent of the health insurance premiums paid on behalf of an owner-employee. Additionally, a corporation can deduct other expenses like automobile insurance, education benefits and life insurance. But for sole proprietors, these expenses are subject to strict limitations (if deductible at all) and can be "red flags" that trigger an audit..
Kate SmalleyConnecticut SecretarySpecializing in Transcription Serviceskms@connecticutsecretary.com http://www.connecticutsecretary.comBusiness Entities ? What Are The Choices?
When you decide to start your own business, one of the most important decisions you will make is determining which business entity is right for your business. This decision will have a huge impact on how the business is operated, how taxes are paid, and your personal liability. Different types of entities have different advantages and disadvantages that must be taken into consideration, but you should start with an understanding of exactly what each type of business entity is.The sole proprietorship is the choice for most business startups, but it isn't necessarily the best choice. What makes this type of business structure attractive is that it is the easiest and fastest way to set up a business. All that is required for a sole proprietorship is a business license, which can be obtained in about an hour by visiting your local court house, paying the fee and filling out a short form.A partnership is just like a sole proprietorship, except that there is more than one owner.
Again,...
Business Entities ? What Are The Choices?
Incorporate > Business Entities ? What Are The Choices?
Top 7 Small Business Tax Tips
Top 7 Small Business Tax Tips by Here are seven ways for owners of small businesses to save money on their taxes.1. Incorporate Yourself: If you're still a proprietor or partner of a business, it's time to incorporate yourself. Not only will you limit your liability, but you may enjoy lower tax rates on small business income and other tax advantages as well. 2. Be Home Based: If possible, continue (or switch to) being a home based business.
Not only will you keep your overhead down, but you will be able to write-off (or deduct) the business use of your home.3. Income Split: Pay reasonable wages to your spouse and children. In this way, you can legally divert income taxed at your higher rate to your family members that are in a lower tax bracket.4. Rearrange Your Affairs For Maximum Tax Savings: Can you make some changes to turn your hobby into a moneymaking business? Can you use that extra room in your house as a home office for your business? Can you arrange to use your car more...
Top 7 Small Business Tax Tips
Incorporate > Top 7 Small Business Tax Tips
WestHost Launches New Personal and Business Web Hosting Plans
Providence, Utah (ContentDesk) March 20, 2006 -- WestHost Inc., a leading web hosting provider (http://www.westhost.com), recently announced the release of completely new personal and business hosting plans. While few shared hosting companies have created an offering tailored specifically to individual or business needs, even fewer are bundling comparable applications without increasing costs.WestHosts new Personal Plans are lower priced, offer a large amount of disk space and bandwidth, and include features geared towards individuals, such as blogging, photo albums, and forums/message boards. Business Plans also come with a generous amount of space and bandwidth, yet incorporate business-specific features like shopping carts, search engine submission tools, advertising credit, SSL security, multiple domain support, and added e-mail.Over two years ago, WestHost shocked the industry by offering Virtual Private Server (VPS Hosting...
WestHost Launches New Personal and Business Web Hosting Plans
Incorporate > WestHost Launches New Personal and Business Web Hosting Plans
Copywriting Tips for Sales-generating Brochures
Copywriting Tips for Sales-generating Brochuresby
? 2003http://www.copywritingcourse.comBrochures have held an important place in marketing plans for longer than most of us can remember. There is no doubt that they have the ability to generate sales and increase revenues. Why then do so many of them fail?There are several aspects of copywriting for brochures that amateur writers don't consider. It's those things that make or break the success of your efforts.For the sake of generalization, let's think about creating a six-panel brochure. (Also called a tri-fold brochure among other things.) This is created from an 8.5" x 11" sheet of paper that is then folded twice.
There are three panels on the front and three on the backside of the original sheet.The CoverAs if it wasn't obvious, the cover is the most important panel in your brochure. Both the images and words need to grab the reader's attention and pull him or her in. It has to be compelling enough to (a) strike an...
Copywriting Tips for Sales-generating Brochures
Incorporate > Copywriting Tips for Sales-generating Brochures
Copywriting Tips for Sales-generating Brochures
Copywriting Tips for Sales-generating Brochuresby
? 2003http://www.copywritingcourse.comBrochures have held an important place in marketing plans for longer than most of us can remember. There is no doubt that they have the ability to generate sales and increase revenues. Why then do so many of them fail?There are several aspects of copywriting for brochures that amateur writers don't consider. It's those things that make or break the success of your efforts.For the sake of generalization, let's think about creating a six-panel brochure. (Also called a tri-fold brochure among other things.) This is created from an 8.5" x 11" sheet of paper that is then folded twice.
There are three panels on the front and three on the backside of the original sheet.The CoverAs if it wasn't obvious, the cover is the most important panel in your brochure. Both the images and words need to grab the reader's attention and pull him or her in. It has to be compelling enough to (a) strike an...
Copywriting Tips for Sales-generating Brochures
Incorporate > Copywriting Tips for Sales-generating Brochures
Business Phones Keep Up With Changes In Technology
The basic premise that defines a business phone has been simple and well stated for many years. Business phones, unlike home telephones, need to be able to handle a large call volume and provide functionality that is useful to the end user. This usually includes the ability to field several calls at the same time, put people on hold when necessary, and direct phone traffic to wherever it needs to go. Business phones have accomplished these tasks with flying colors going all the way back the earliest models. Even more impressive, however, is the ability business phone manufacturers have shown to incorporate new and expanding technologies into their products.
Technology has grown by leaps and bounds, especially in the last two decades.
From faxes to cellular phones and the dawning of the computer age, changes that have affected phones in general, but particularly business phones, have been varying and abundant. Looking at other industries where technology has influenced...
Business Phones Keep Up With Changes In Technology
Incorporate > Business Phones Keep Up With Changes In Technology
Golf Exercise And Stretch Program For Total Golf Performance
Golf exercise and stretch.
This is a combination I use in all of my golf fitness programs both online and with my personal golf clients.
It's the ultimate combination to improve the golfers swing quickly and efficiently.A fitness program for golfers that does not incorporate a golf exercise and stretch is doing more harm than good.
Golfers need that blend of dynamic strength specific to the golf swing and the range of motion to hold it for 18 holes.So many times I hear a golfer mention stretching only.
This is a big mistake!
Stretching without strengthening does not equal permanent range of motion improvements.
An over-stretched muscle that doesn't have strength opens up the possibilities for injury.That is why golf exercise and stretch is the key.
For every golf exercise, there is an appropriate stretch.
Taking this approach will create a powerful swing with less tension and stress put on the body.An example of golf...
Incorporate > Golf Exercise And Stretch Program For Total Golf Performance
The Benefits Of Incorporating Your Business
What do General Motors, Microsoft, AT&T and many other major businesses in America have in common? They're corporations. A corporation is a separate legal entity that functions separate and apart from its shareholders or owners. You can incorporate on your own without an attorney, although it wouldn't hurt to seek legal advice. And you can incorporate in your home state or any other state of your choosing. More than half a million business entities have their legal home in business-friendly Delaware, including more than 50 percent of all U.S.
publicly-traded companies and 58 percent of the Fortune 500. Nevada, New York, California, Arizona and Florida are also magnets for businesses wanting to incorporate. Protection Against Personal Liability Incorporating offers a variety of legal and tax advantages. For one, it's one of the best ways a business owner can protect his or her personal assets. As a separate legal entity, a corporation is responsible for its own debts.
Shareholders...
The Benefits Of Incorporating Your Business
Incorporate > The Benefits Of Incorporating Your Business
Save Money with Cheap Long Distance Plans
There are many different cheap long distance plans to choose from, in fact it can be a little overwhelming with all the choices you have for cheap long distance and unlimited long distance plans. Most cheap long distance plans offer an unlimited long distance plans that turns out to be cheaper compared to regular a plan that waivers in fees each month. We hope this article will help make choosing a new cheap long distance and unlimited long distance plan easier for you!Tip One:When changing phone...
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Incorporate > Save Money with Cheap Long Distance Plans
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Understanding The Dreaded Income Tax Laws
Every year in April, Americans are faced with an imposing deadline ? tax day. Throughout the year, income is earned and then taxed. Depending on the way in which dependants are claimed and deductibles used, a person would then be entitled to money back come income tax time or they would have to pay taxes. In either case, dealing with income tax forms and laws can be a disturbing prospect.
Keep in mind that the United States lives on a budget just as regular families do. Their...
Incorporate > Understanding The Dreaded Income Tax Laws
Mortgage Calculators
A mortgage calculator is a simple form that uses basic details of your mortgage loan to calculate what you expect to be paying for your home loan each month. You can use it to see what loans may cost at different interest rates, thus helping you calculate the right mortgage loan for your home.
The primary factor that the mortgage calculator generally asks you for is the amount of money you have to borrow from the bank, in other words, the loan amount. It also asks the interest rate...
Incorporate > Mortgage Calculators
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