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Another Great online check ordering Article
Business Success Checklist
How do you start to plan your business? What is required?
What should you research? Where do you start? Use the
checklist below to guide you as you build a strong, solid
business foundation.
Check your Personal Foundation. Make sure you are ready
mentally, emotionally and financially to begin your new
venture.
-- Make the time.
-- Budget your income.
-- Create balance in your life.
-- Know your strengths, weaknesses, top 5 values and needs.
-- Order a copy of your credit report.
-- Choose your ideal business.
Get organized. Any new business venture will go more
smoothly if you know right from the start what you have to
offer, who you want to offer it to, and how you want your
business to be organized.
-- Read a few books on business start-ups and marketing
http://www.coachmaria.com/businessbooks.html.
-- Check the need for your services.
-- Prepare a business plan and ideal client profile.
-- Price your service or product.
-- Develop a customer service policy.
-- Create an Operations Manual.
-- Plan for your office - location, supplies, utilities, and
set-up fees.
Develop a strong network and referral base. From support to
legal advice, starting your own business is never something
you do all by yourself.
-- Look for assistance: employee, independent contractor.
-- Legal: licensing, business type, contracts, trademarks,
copyrights, patent, service marks.
-- Build support: family, friends, business coach, consultant,
advisors, business and social networking.
-- Insurance: health, home, car, income, liability, risk,
disability, loss of pay.
-- Money: taxes, accounting, banking, billing, cash flow,
loans.
-- Marketing: copywriter, proofreaders, website designer,
graphic designer, an assistant, Toastmasters, etc.
Create a Marketing Plan. A new business often doesn't have a
huge budget for marketing and a plan you help you save
money.
-- Design your marketing plan with your integrity in mind.
-- Develop print media (business cards, stationary, forms,
advertisements, newsletter, etc.).
-- Decide if online marketing will be part of your plan
(website, newsletter, ad's, etc.).
-- Practice describing the benefits of what you do in 30
seconds and 2 minutes (called verbal logo, USP, elevator
speech).
-- Re-evaluate your plan every 3 months.
Start your research with the business, marketing and
personal development articles at
http://www.coachmaria.com/articles.html.
Copyright 2001 All Rights Reserved. Maria Marsala, Business & Life
Coach-Consultant. Maria works with individuals as they design, start
and grow their businesses or careers around what they love to
do. Visit www.CoachMaria.com to subscribe to "Growing You and Your
Business" a free weekly online newsletter.
Business Tax Loophole: Leasing Assets To Your Corporation.
By Alex Goumakos
While there are many equally valid reasons to incorporate, saving money on taxes is a consideration that can yield relatively immediate results. Leasing assets to your corporation is a tax strategy you should absolutely consider if you already have a corporation or are thinking about forming one. Here's how it works.
Just because you incorporate doesn't mean that the corporation must own all of the assets it uses. In fact there are many legal, tax and financial considerations for NOT having your corporation own its own assets.
Leasing assets to your corporation is a perfectly legal and advantageous way to reduce your overall tax liability. When you lease assets to your corporation, the business pays a lease or rental payment and you in turn claim the lease or rental income. By doing this, you as the lessor get to deduct items such as acquisition interest, depreciation, repairs and maintenance, insurance and administrative costs.
When interest and depreciation deductions are exhausted you can then transfer the assets to a family member in a lower tax bracket or you can sell the assets to the corporation. A sale to the corporation would give it a higher tax basis (cost) than it had in the hands of the lessor (you). This would increase the corporation's depreciation deductions, thereby reducing its tax liability.
If you haven't noticed already, leasing assets to your corporation is a fabulous way to pull money out of the business instead of through payroll. When you take a paycheck, you've got payroll deductions to consider. Not so when you take a rent check.
Another reason to lease assets to your corporation has to do with double taxation. If your corporation sells appreciable assets for a big gain, and you try and take the money out of the company, you will get clobbered with taxestwice. This will not be the case if you lease the asset to the corporation. Under this scenario, you will only be taxed once.
From a legal standpoint, it's also better to have your corporation own as little assets as possible if you are in a high risk industry subject to lawsuits. If you lease assets to your corporation and your corporation gets sued, it's tough for a hostile party to seize the assets if they are in your name and NOT the corporation's.
You may rent almost any asset to your corporation. Examples include, office space, machinery and equipment, vehicles, computers and peripherals and real estate.
Besides renting the assets personally, you may use a multiple entity arrangement such as partnerships, S corporations or limited-liability-companies to rent the assets to a corporation. However, you shouldn't use another regular corporation because it may be deemed a personal holding company (where most of its income is from passive income such as rents and royalties, etc.). Personal holding companies are subject to a penalty that would defeat any tax savings rental strategy.
The requirements for leasing assets to your corporation are as follows:
* You must draw up a formal and bona fide lease agreement. You should treat the leasing agreement just like you would if you were dealing with an unrelated party.
* The rental amount you establish must be fair. In other words, you can't charge anything you want. It has to be reasonable and in line with what's being charged for rental of similar assets in your area.
So there you have it, more good reasons to operate your business as a corporation. My final piece of advice is this: Make sure you consult with your attorney and tax advisor before making any important legal or financial decision. As with most things legal or tax-related, there are many exceptions and special rules that apply. Your attorney or tax advisor will be able to advise you correctly based on your own unique circumstances and objectives.
---------------------------------------------------------------- Alex Goumakos is a CPA, business advisor and guest consultant of Active Filings LLC, a professional incorporating company that provides services in all US. (http://www.activefilings.com). Alex can be reached by email at mailto:alex@activefilings.com ----------------------------------------------------------------
You have permission to publish this article electronically or in print, free of charge, as long as the resource box at bottom is included.
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