The Small Business Tax Help Blog

Posts Tagged ‘llc’

The current downturn in the global economy has created an environment with an ever-increasing level of threats to all of us. These threats are often outside of your control and therefore, there is little or nothing that you can do to stop them affecting you. However, the degree to which these threats affect you can be limited by taking ownership over the factors that you can control.

First things first

The first thing that you can do is to act now and seek to protect yourself against the threat of redundancy. At present, there are policies available that can provide you with a replacement income in the event of involuntary unemployment. There are also products, such as mortgage repayment protection, that can cover your mortgage repayments in the event of redundancy. These products do not pay out indefinitely, but can help you to manage your way through a potential cash-flow crisis in the initial period after redundancy. Obviously, there is a cost involved in taking out one of these policies, so it is important to identify how this cost may affect your current cash-flow position. That said, this kind of protection can help you get through the initial stages of your redundancy and allow you the financial freedom to plan for the future. In turn, by limiting the immediate effects on your cash-flow, it can give you an opportunity to reassess your career path and may also allow you the opportunity to re-skill for an entirely new career.

Already Redundant?

If it’s too late to protect yourself against the threat and you are faced with the reality of redundancy, you need to understand all of the implications this has on your personal economy so that you can adequately plan the road ahead. The tax treatment of redundancy payment is the first area that you need to manage and control. There are a number of reliefs available to you on a redundancy payment that can help reduce your tax liability. The relief option you choose is not always a straight-forward case of selecting the largest relief, as in some cases you may be waiving your rights to a tax-free lump sum from your pension on retirement. So although you may receive more now, you may be forfeiting a lot more in the future. Therefore, selecting the appropriate relief is vital and it is important that you take independent advice to ensure that the right decision is made.

There is also a further relief called ‘Top Slice’ relief that is available to you in the year of redundancy. Many people tend to overlook this relief due to that fact that you can only claim it at the end of the tax year. In many cases, by not claiming Top Slice relief people can miss out on substantial tax rebates. This is valuable money needed to help you financially following a redundancy and could be lost if you do not know how to claim it back. Taking control of your pension fund is the next area that must be looked at in the event of redundancy.

If you have been in pensionable employment for a number of years, it is likely that you have built up a substantial pension fund within the company pension scheme. This is a valuable part of your personal economy and it is therefore vital that you make the right decision in relation to this. The event of redundancy can often resulting an opportunity for you to take ownership and control of your pension fund. In certain circumstances, it is now possible to take ownership of the fund that you have built up within the company pension.

Ownership in this case does not simply mean giving you the ability to choose where your money is invested pre-retirement, but also involves the ownership of the money post-retirement. In a typical company pension scheme, owning the pension fund post-retirement is not possible as in most cases, you will be forced to buy an annuity or income for life. This involves giving away the fund that you have built to an insurance company who will pay you a certain amount for as long as you live. The key unknown in this equation is how long you are going to live. If, by taking ownership of the pension fund, you can keep control of the total value of the fund, you now open up new possibilities post-retirement. It also means that you no longer have to give away your fund to a third party, but can now control and manage your asset in retirement. By taking ownership of your pension fund, you now have the ability to bring another part of your personal economy under tighter control and possibly open up options that would not have previously been available to you.

IRS finds preparer mistakes common

Most of us don’t do our own tax returns.My husband did ours for years. He finally surrendered

Timothy Geithner Scandal Widens: Obama’s Treasury Secretary Nominee is a Tax Dodger, Cheater

NaiKun Wind Releases Year-End Results, Marking Year of Major Milestones

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Jan. 11, 2010) – NaiKun Wind Energy Group Inc. (TSX VENTURE:NKW) has released its financial results for the year ended September 30, 2009, a period of major milestones in the development of Canada’s first offshore wind energy project, in British Columbia’s Hecate Strait. NaiKun Wind’s activities and accomplishments during the year include the following …

Mirkwood – The Leech (1973) Hard Prog Psych Music.

Question: how to receive revolving credit/credit cards under my corporation?

i know you have to build corporate credit first by establishing credit with trade lines. but wher ei get stuck is how do i receive credit cards under my corporation? what companies are willing to give credit to a new corporations just under my ein/corporation. I know my personal gurantee will come in when applying for loans but i knowyou can get credit cards but i don’t know which companies are willing to issue it.. ? does any expert entrepeneurs have the answer?

Answer: forget it, card companies want a person to gurarantee

Spelling bee makes for vocabulary workout

Several of my high school students asked why their vocabulary test was a little different this week.

Dimensions: New in layout 2.1

Question: How do I get a loan with My EIN Number for my LLC ?

Is the Employer Identification Number (EIN) like a SSN or how does it work?
Can I still get a loan if my personal credit is bad?
I just need to get a loan to buy my equipment for my company. Limited Liability Company (LLC)

Answer: since your company is probably new - the bank will look at the personal credit of the primary officers, who will have to be the guarantors on the loan.

TSX Venture Exchange Daily Bulletins for April 01, 2010

VANCOUVER, BRITISH COLUMBIA-- -

WDR TV Reportage - Ein Deutscher erobert Kurdistan 1/3

Question: Does a Nevada state business license required for a Nevada LLC that is formed to hold real estates?

I am forming a Nevada LLC to hold my real estates in Nevada, soldly for asset protection. Do I need to get a state business license ($100) as well as EIN? I understand I would need it if I was conducting an active business in Nevada, but real estate holding/asset protection is passive. Thanks in advance for your help.

Answer: If it is your personal residence than you should file for an EIN number but request to be a disregarded for tax purposes. By placing it directly into the LLC you could loss the capability of taking personal tax write offs if you do not elect for the entity to be disregarded for tax purposes. You should not need to obtain a business license. Also, be aware that if you have a mortgage on you personal residence and placed the property directly into the LLC you may be in breach of your mortgage contract and your mortgage company could request payment for the full amount owed.

If the property is an investment property that you plan to rent out, than you will need to obtain a business license, the state just increased the state license fee to $200.00. You will need to obtain and EIN number so that you can open a bank account for depositing rental income and filing taxes. Again, if the property is mortgaged you may be in breach of your mortgage contract.

Nevada LLC's are the absolute best possible entity for asset protection; however, when it comes to real property there can be complications when transferring the property into the LLC.

'New' Sierra Nevada building is actually big tent for Oktoberfest

CHICO — Travelers along Martin Luther King Jr. Parkway and East 20th Street this week are seeing the construction of a huge "building" at the edge of Sierra Nevada Brewing Co.

Nevada Tan - Ein Neuer Tag [Translation]