The Small Business Tax Help Blog

Posts Tagged ‘small business tax breaks for 2009’

Question: Obama and the dems are for small businesses and tax breaks for them, why don’t tea parties endorse the dems?

the republicans if elected will lower taxes on large corporations and make them pay less than small businesses do and will make it even harder for them to compete. Also according to their website http://www.gop.gov/solutions/ they aren’t offering any tax breaks to small business owners. Why do these tea baggers vote against their own best interest.

Answer: The teabaggers are a sad, sad group.

They are united in nothing but opposition to Obama, that is all.

And I’m not saying they’re all outright racists, but you must see for yourselves people.

http://twitpic.com/11yovq

Tax battle will show if reform is still possible

Look at America and Europe and it’s clear Australia has benefited hugely – in a material sense, at any rate – from the painful micro-economic reforms of the 1980s and ’90s.

R&D Tax Credit and Small Businesses – 7

Question: Any benefits to registering a small business or DBA as opposed to selling cash under the table?

I make crafts and gifts and sell at flea markets, craft shows, etc for straight cash. I am wondering if there is any benefit to registering as a business and getting tax breaks or just sticking to the cash in hand

Answer: Their are several important benefits to creating an LLC (Limited Liability Corporation).

An LLC would most likely be your best alternative if you decided to go legit. It is perfect for individual owner-operators and does not require the creation of a board of directors as you would if you created the standard incorporation (a business name with 'inc.' on the end of it.)

An LLC protects your personal assets from any lawsuits to your business. Imagine if a craft item you sold had a small piece that a two-year-old child pulled off and tried to swallow. The child ends up in the hospital with brain damage from a lack of oxygen for too long before help could arrive. The parents hire a lawyer who will try his best to rake you over the coals. Even one lawsuit could completely bankrupt you and leave you homeless.

However, if you were protected by an LLC, the only assets that could be attached in a lawsuit are those of your business. You could live in a million dollar mansion in Manhattan and no lawyer or judge could touch it. Yes, it would most likely mean you lose your business, but better to lose that than everything else you own as well. It's much easier to start another business.

If you incorporate under an LLC and also set up a business bank account (it's important that you keep your personal banking separate from your business banking for tax purposes), you would be in position to apply for loans under your business, loans for expansion of your current business or for the creation of a completely new business at a different location. Small businesses cannot thrive without enough cashflow to handle the requirements of the business, employees, advertising, merchandise and materials, lighting, anything to do with your business.

And I have heard (don't know for sure) that your personal credit does not effect your business credit, which is an even bigger plus.

Experts: Tax breaks often not a major factor

Thomas F. Kirk, president and CEO of Hanger Orthopedic of Bethesda, in a statement this week thanked the state of Texas and the city of Austin for helping his company decide to move to Austin this year.

Tax breaks for small business...

Question: How do I change from a sole proprietership (tax breaks) to a stand alone business (longevity). Options?

Specifically looking for options that include estate planning, or just converting to a corp. Pros and cons?

Answer: From the article "Changing from Sole Proprietorship to a Corporation" http://www.powerhomebiz.com/guide/cases/jaychrissie.htm :

"A sole proprietorship is not a registered legal entity that is separate from its owner and therefore cannot technically be "changed" or converted to a corporation (or a limited liability company, for that matter)."

"Instead the sole proprietorship would cease to exist, and you would form a new corporation to conduct business. Corporations are formed at the state level by filing the Articles of Incorporation with your Secretary of State. The Articles of Incorporation (also referred to in some states as the "Certificate of Incorporation") is the document that serves as the charter of the corporation. It includes such details as the corporation's name, purpose of the corporation and stock structure, as well as other information as required by the laws of the state of incorporation. You may prepare and file the Articles of Incorporation yourself, or you may hire an attorney or incorporation services company to do this for you."

If you wish to change to a corporation, here are the advantages and disadvantages of corporations:

Advantages

- Stockholders have limited liability.
- Corporations can raise the most investment capital.
- Corporations have unlimited life.
- Ownership is easily transferable.
- Corporations utilize specialists.

Disadvantages

- Corporations are taxed twice.
- Corporations must pay capital stock tax.
- Starting a corporation is expensive.
- Corporations are closely regulated by government agencies.

If you are interested in forming a corporation, but hesitate to do so because of the double taxation, there is a way to avoid it. You can do this by making your business an S corporation. The Internal Revenue Service permits this type of corporation to be taxed as a partnership rather than a corporation. However, in order to qualify for S status, your business must meet the specific requirements set forth by the IRS. These include limits on (1) the number and type of shareholders in the business, (2) the stock that is issued, (3) the corporation's sources of revenues.

Or another way to do it is to form an LLC instead. Some states allow a one-member LLC, but not all. Check if your state allows a one-member LLC or if you have a partner in the business, then this would not be a problem.

Here is an article entitled "LLCs vs. Corporations" http://www.powerhomebiz.com/vol97/llcs.htm that can help you understand which legal structure is best for you and your business.

(AFX UK Focus) 2010-01-15 14:18 Morocco extends tax breaks for listed firms-official

CASABLANCA, Jan 15 (Reuters) - Morocco has extended tax cuts to firms listed on the Casablanca bourse for three years as part of incentives to expand the number of listed companies, the country's bourse chief said on Friday. "The government has renewed the tax incentives for listed companies for three years. As a result listed firms will pay up to 50 percent less in tax profit," Karim Hajji said ...

Drew Miles on Maximizing Business Tax Deductions and Tax Write-offs