Tag: series

There are 23 posts tagged as series.

The Prosperity Game-day 2

Well as suspected I didn’t get to the website to collect my money and go shopping. My time of sitting on the computer and playing around is very limited. I have just enough time to get on and handle my business. Not to mention, I’m not too fond of shopping anyway. Nevertheless, here 2 wks later, is the result of my second check.

This time around I realized that I often tell myself  “I have everything that I need” and “I don’t need to go shopping” because I DON’T like shopping.  This has lead me to buying “any ol’ thing” in a hurry. Or just avoiding the stores all together and making do with what I have.  I’ve always chalked this up to a great spiritual assessment that I’m not materialistic. And maybe that is true to some extent. But it also leaves me completely out of touch with what I like. Clothes and dressing has become more of a utilitarian experience. Whereas it use to be about expressing my unique style.  My creativity and passion of color is completely absent and I know that leaves me unbalanced in other areas! I need to go shopping just to stir up my creativity, passion and unique style again.

Here’s what I purchased with my $100 from the universe. Day 2 of the prosperity game

Click here for day 1 of my prosperity game experience.

The Prosperity Game

I just signed up to play the Prosperity Game at Choosing Prosperity.com.  The purpose is to stir up a feeling of prosperity in your energy field. So each day  you receive a virtual check from the Universe and then go on a virtual spending spree to make purchases that will bring you the most joy.

Right away I was given $100 from “the universe”. I have to admit, seeing my name on a $100 check felt good. I figured I would buy  a couple of tops and a pair of shoes. But when I went “shopping” at Wishpot.com I found a pair of shoes that cost $89. I wrestled with the idea of spending the entire $100 on a pair of shoes. Whenever I would remind myself that I’m going to get some more of these prosperity checks, my other mind would say,  “But yeah…you can’t trust that. Suppose you don’t get back to the website.”

Interesting.

Here are my Lizza Heel Jessica Simpson, honey colored pumps!

Jessica Simpson Lizza Heel pumps

My 1st check will go on a pair of these.

Incorporating-Making Your Home Business Legal

Here in part 3 of Making Your Home Business Legal I’ll explain the differences between a “S corporation” and a “C Corporation”. Make sure you check out  Part 1 to understand the many state & federal regulations for legalizing your business and Part 2 for the pros and cons of the different types of ownership.

If you decide to classify your home business as a corporation you can go the traditional route of a C corporation; or you can classify your home business as a S corporation. Small businesses usually chose the S corp.

Whats the difference between a S corporation and a C corp?

They are very similar except in the way of taxation. With the S corp the profits and losses are passed through the corporation onto you, the owner.   You in turn report the profits or losses on your income tax returns.

With the C corp the Corporation will pay taxes on its profits and then the owners or shareholders (you) will report money received from the corporation (in the form of salary or dividends) on your income tax returns.

So which is better for your home business, an S corp or a C corp?

That depends. Some states don’t recognize S corps and some states will tax an S corp just like a C corp. So you must do your homework.

And get advice from a business law attorney. And preferably one who has experience dealing with small businesses. (I always tell my clients to niche themselves and here is a perfect example beneficial that could be for you. People with a small niche seem to know more about their clients needs.)

In what state should you incorporate?

Since the 1920’s Delaware has been a popular state to incorporate.  I remember with my first incorporated business I choose Delaware.  I didn’t know why or how it benefited me. Duh! It didn’t. It’s best to incorporate your business in your home state.  The reason that Delaware has been so popular as an incorporating state is:

  • It often revises it’s corporate laws.
  • The legal system is very attentive to corporations. Delaware has a special court, called the Court of Chancery. On the benches sit judges who were former corporate lawyers. Their expertise tends to be beneficial for the corporations that find themselves in a lawsuit.
  • There is no income tax on corporations that are organized in Delaware but do business in another state.

All 3 of these points are advantageous for large corporations, not home business. Incorporate in your own state.

(Now Nevada and Wyoming are becoming popular places to incorporate because they have no corporate or personal income tax and they don’t share information with the IRS.)

Ownership-Making Your Home Business Legal

After operating your home base business for a period of time you have to decide how you’re going to make it legal.

Yes I meant that to be read exactly as I wrote it! Many people run a home business and never think to legalize it in terms of ownership. It is to your advantage to do so because the form of ownership you choose has important financial, tax and marketing propositions.

There are several forms of ownership:

  • sole proprietorship-you are the only owner
  • partnership-2 or more parties-there are 3 classifications: general partnership, limited partnership, limited liability partnership
  • corporation -a legal “person”, separate from the individuals who own the corporation-there are 3 classifications: S corporations, C corporations, LLC

Which one should you choose? Well as I explained in part 1 of this Making Your Business Legal Series, I’m not an accountant nor an attorney. You’ll have to talk that over with one of them but here is some simple information that will help you get a grip on the TONS of information out there.

Sole proprietorship

pros

  • the easiest to set up & run
  • you don’t have to maintain a separate bank acct, just keep accurate records
  • you don’t have to pay employment or unemployment taxes for yourself
  • less paperwork and fewer regulations to comply with

cons

  • you are 100% responsible for all business debts & actions
  • You could lose your personal assets if the biz gets sued or goes bankrupt
  • financing your business may be more difficult-banks don’t like to lend to sole prorietorships
  • your fringe benefits are limited-for instance the amount of tax-free money that you can put in your pension plan is limited

Partenership

pros

  • it lets you pool resources with others to build a larger, more profitable business
  • the partnership can be formed for a specific project and then dissolved
  • you many have lower costs & fewer legal regulations than you would running as a corporation
  • all profits (& losses) get passed along to the individual partners

cons

  • partners don’t always get along
  • each partner is legally responsible for the actions of the others
  • you need to have an attorney draw up a legal agreement and this could be costly
  • like sole proprietorship, your fringe benefits are limited

Corporation

pros

  • your corporation is a legal personality and can enter into contracts, own property, lend or borrow money etc.
  • under some circumstances your tax rate may be lower
  • it’s easier to transfer ownership
  • you may be able to raise capital more easily
  • incorporation will protect your personal assets
  • HUGE fringe benefits like the deduction of education costs, vehicles, employee insurance

cons

  • your cost of doing business usually increases because of added fees
  • lots of paperwork
  • the IRS could limit your salary as an employee of your own corporation
  • your personal finances MUST be kept separate
  • you are subject to double taxation-the profits of the corporation are taxed as well as your dividends  on the profits. But for a small home business you’re usually won’t have that problem.

In part 3 of this Making Your Home Business Legal series I’ll break down the categories of corporations to help you decide which is right for your home business

Making Your Home Business Legal

You are honest and report all of your income from your home business so you feel safe from the government right?

NOPE!

No matter how small your little home business is it is governed by a tangled web of local, state and federal laws. Some laws were created to protect your clients, employees, creditors and suppliers. Others are to protect you from competitors and your clients. And then there are other laws that exist just because “that’s they way it’s done.”

All you want to do is make a couple of thousand dollars a month so that you can take your babies on nice vacations without tapping into mortgage money;  yet you have to untangle, decipher and interpret  crazy legal laws!!

I know it sucks, right?

So in this series  of Making Your Home Business Legal, I’ll give you some simple info. But you must remember I’m NOT an attorney or accountant and some laws vary from state to state.  I’ll keep it general and make it painless but for goodness sake don’t live off of these blog posts! I’m a mom with 5 kids who researches info so that I can help my clients, but even they are still responsible for gathering their own information because they all come from different states.

In general, if you are a business with no employees you will need to follow some (if not all) of these steps to make your home business legal in your state.

  • register your business name and get a certificate of doing business under an assumed name
  • meet specific bonding or insurance regulations that your state has authorized for your type of business
  • obtain required permits & licenses
  • comply with zoning regulations, regulations regarding signs on your business property, licensing laws etc.
  • keep accurate income & expense records
  • report your income to the IRS and state tax authorities
  • pay owed income taxes and self-employment tax quarterly
  • collect state sales tax if you sell taxable products or services

Depending on the type of business you may have to observe noise codes and sanitation regulations.

To find out about the state and federal laws that affect your business talk to someone in the Small business Administration (SBA),  the Service Corps of Retired Executives (SCORE) or Small Business Development Centers (SBDC).  You can also call a college or university in your area that have small business or entrepreneurial majors.

To find out about zoning laws look in the phone book (remember those things?) under government listings or city zoning board. And of course you can always Google “city zoning laws your town“.

Tomorrow I’ll talk about the 3 forms of ownership options for your business.

Have you found it easy or difficult to keep up with your state regulations?