Planets in Retrograde -- The Basics
By
Rebecca Brents
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I would like to offer my appreciation for the amount and quality of the work you produce.
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Thank you, Rebecca! I just love these "meaty" readings to chew on.
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Journey from Anxiety to Freedom: Moving Beyond Panic and Phobias and Learning to Trust Yourself
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What You Need To Know About Incorporating Your Business
by Diane Hughes
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Most US-based small businesses are getting eaten alive in taxes! That statement has proven itself true over and over again. However, while small business owners want to save money, many are literally afraid of incorporating their companies.
The paperwork, the additional reports, having a set payroll amount each month, and other visions swirl around their heads. Those visions could be costing you a ton!
Let me take a few minutes to explain what you need to know about incorporating your business. While it certainly isn't a move every business will want to make, there are definitely some large benefits associated with incorporation.
MYTH
Incorporating means I can't take money whenever I want it.
TRUTH
Yes you can! This is a MYTH that holds a lot of small business owners back from incorporating. If you set a payroll amount for yourself, then decide you want/need more money, you simply write yourself another check and call it an "owner distribution" or a "draw."
MYTH
There's too much paperwork involved once you incorporate. I don't have the time.
TRUTH
There are some additional forms you have to complete. There are some additional taxes you have to pay. HOWEVER... read this carefully... for the three or four extra forms and the cost of the additional taxes, most businesses will still save when compared to counting every dollar you make toward personal income.
MYTH
The only good reason to incorporate is for personal protection. The difference in taxes isn't that much.
TRUTH
While incorporating your business will help protect you from lawsuits and from having your personal property seized, there are more benefits than that. The tax savings can be quite significant.
MYTH
With the attorney's fees, the CPA's fees, the additional income tax returns, and the forms I have to file quarterly, it's just not worth it. I won't really save any money.
TRUTH
Every case is different; however, most small businesses will more than make up the $1500 - $2000 it costs to incorporate within the first six months to one year. Also, most small businesses will save about 50% on taxes after they incorporate. (A qualified CPA will be able to look at your books and give you a more accurate figure.)
MYTH
I'll have to hold meetings and keep lots of records that I don't have time to keep.
TRUTH
Not if you register as a "closed" S-Corporation. This means you have waived the requirement to hold all those meetings and keep all those records.
How Do You Get Specific Details?
Contact a qualified CPA in your local area. He or she can give you detailed information on how much it will cost to set everything up, and - most importantly - how much you will save in taxes.
Incorporation is not something to be afraid of. In fact, if you're one of the many who will save 50% off your taxes in the next year, it's something to go after with a vengeance!
© 2003 Diane Hughes
Diane Hughes is an accomplished Internet entrepreneur and editor of the popular ProBizTips Newsletter. Subscribe to her newsletter for more tips, tricks, and secrets of the trade -- plus get HUNDREDS of eBooks, software and tools just for subscribing!
http://www.ProBizTips.com
Are you looking for more information on Career, Professional Issues, Reputation, Organizational Leadership, Political Postures, Honor, Fame, and Prestige?
Capricorn is the astrology sign that deals specifically with Career, Professional Issues, Reputation, Organizational Leadership, Political Postures, Honor, Fame, and Prestige. Learn more about Capricorn.
The information here tells all about Capricorn Astrology.
Capricorn Horoscope
And above all things, never think that you're not good enough yourself.
A man should never think that.
My belief is that in life people will take you at your own reckoning.
~ Anthony Trollope ~
Born April 24, 1815
Featured In the Spotlight Article: From the In the Spotlight Archives: In the Spotlight Articles for the Current Sign: |
| Ways to Avoid or Overcome Career Burnout | In the Spotlight for Capricorn Contents | My Career Is In The Doldrums |
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| Enchanted Spirit is a non-denominational spiritual center of healing, support, self-improvement, personal guidance, education and writing. We publish multi-media works of New Age thought and information to encourage serenity and growth in individual life choices, advance the universal search for life's meaning, and promote tolerance for positive ideas from all philosophies and religious traditions, believing as we do that truth is where you find it. |
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Last updated May 23rd, 2004
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