Business Incorporation How To Move From The World Of Unlimited Liability To Limited Liability}

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Business Incorporation — How to Move from the World of Unlimited Liability to Limited Liability

by

Wayne M Davies

For the small business owner or self-employed person, both the sole proprietorship and the general partnership put you in the world of unlimited liability.

All your personal assets are at risk. A business-related accident or lawsuit could literally wipe you out.

How do you solve this problem? By forming a “C” Corporation, an “S” Corporation, or a Limited Liability Company (LLC).

Here’s a quick overview of the major characteristics of these three entities:

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C Corporation. The profit of a “C” Corporation is taxed twice — once to the corporation and a second time to the shareholders when distributed as dividends. (This is the dreaded “double taxation of corporate profits”). However, shareholders cannot deduct any losses of the Corporation. The “C” Corporation files Form 1120 to report its income and expenses to the IRS.

S Corporation. If your business qualifies, it can avoid double taxation by becoming an “S” Corporation. An “S” Corporation generally is exempt from federal income tax, but still must file an income tax return called Form 1120S. The income or loss of the “S” Corporation is transferred from the corporation to the individual shareholder’s personal income tax returns via Schedule K-1, which the corporation must give to each shareholder.

Limited Liability Company (LLC). This is the newest entity type. From a legal standpoint, the LLC is much like a corporation, offering limited liability to the owners (which are called “members”). From a tax standpoint, the LLC is like a chameleon — it can be taxed however it wants to be taxed, provided the proper paperwork is filed with the IRS. If there is only one owner/member, the LLC can be taxed like a sole proprietorship, a “C” Corporation, or an “S” Corporation. If there are two or more owners/members, the LLC can be taxed like a Partnership, a “C” Corporation, or an “S” Corporation.

Please note that I’m leaving the limited partnership out of this discussion. I’m assuming that you want a say in the day-to-day management of your business. If so, then both the general partnership and the limited partnership are not a good Choice of Entity for you. Why is that? Because if your business is a general partnership, then you automatically have unlimited liability. And if your business is a limited partnership and you want management control, then you’re going to have to be the general partner, and again, you’ll have unlimited liability.

There are certainly business situations for which the limited partnership is a “good fit” (for example, if real estate is involved). But that’s beyond the scope of this article.

So, back to my original question:

How do you avoid unlimited liability? By forming one of these entities: a “C” Corp, an “S” Corp, or a LLC.

Having made such a bold statement, let me also say this: when it comes to this choice of entity issue, one size does not fit all.

So let me add a strong disclaimer: there are situations where a “C” Corporation, an “S” Corporation, or a LLC is not appropriate.

But generally speaking, for many small business owners and self-employed people, one of these three entities is the best fit.

Remaining a sole proprietor or a general partnership doesn’t make much sense — you are putting yourself, your family, and all your personally owned assets at risk.

Wayne M. Davies is author of the 3-volume ebook on small business tax strategies —

The Ultimate Small Business Tax Reduction Guide

. For a free copy of his Special Report “How To Instantly Double Your Deductions”, visit

YouSaveOnTaxes.com

.

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Business Incorporation — How to Move from the World of Unlimited Liability to Limited Liability

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US lawmakers approve bill taxing executive bonuses
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US lawmakers approve bill taxing executive bonuses

Friday, March 20, 2009

The United States House of Representatives approved a measure on Thursday to impose a heavy tax on bonuses to executives from companies that have been bailed out by the government. The bill was passed by a margin of 328-93.

Under the bill, executives making over US$250,000 a year would be charged a 90% tax on bonuses. The tax would apply to firms that have been given at least $5 billion in aid from the government.

The move comes after recent outrage at American International Group (AIG), which gave out $165 million in bonuses to its top executives after receiving no more than $180 billion in government bailouts. AIG has said that the bonuses had to be given out, as the company was legally required by contract to do so.

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Nancy Pelosi, the Speaker of the House, said that the bill was necessary because of the bad judgment shown by firms who received bailouts from the government.

“We must stabilize the financial system in order to strengthen our economy and create jobs. We must also protect the American taxpayer from executives who would use their companies’ second chances as opportunities for private gain. Because they could not use sound judgment in the use of taxpayer funds, these AIG executives will pay the Treasury in the form of this tax,” said Pelosi to reporters following the House vote.

The Senate is expected to vote upon a similar version of the bill. If approved, the differences between the two versions would have to be bridged before it could be signed into law.

Republican leaders in US want more tax relief in economic stimulus
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Republican leaders in US want more tax relief in economic stimulus

Monday, January 26, 2009

As the newly inaugurated Barack Obama administration continues to push for a US$825 billion stimulus package to aid the struggling United States economy, some Republican legislators say they will not vote for such a plan without the inclusion of more tax cuts and less “unnecessary” spending.

Arizona Senator John McCain, Obama’s general election opponent and a leading voice within the Republican Party, says he would not vote for the American Recovery and Reinvestment Plan as it currently stands. Appearing on Fox News Sunday yesterday, McCain echoed his campaign platform in saying, “We need to make tax cuts permanent, and we need to make a commitment that there’ll be no new taxes.”

McCain and other Republicans say they are unhappy with the bill introduced in the House of Representatives, which combines roughly $550 billion in domestic spending with $275 billion in tax cuts. McCain believes not enough Republican proposals have been integrated into the plan, which he fears will result in the plan becoming “just another spending project” rather than a job creator.

“Republicans have not been brought in, to the degree that we should be in, to these negotiations and discussions. So far, as far as I can tell, no Republican proposal has been incorporated,” McCain said. “We’re losing sight of what the stimulus is all about, and that is job creation.”

The Arizona senator is known for his bipartisan efforts in Washington, D.C., but he defined his role in the new Senate as the “loyal opposition”, which does not mean “that I or my party will be a rubber stamp” for Obama, he said.

In his first weekly address since being sworn in, President Obama explained the stimulus plan in further detail, calling it a plan to “immediately jumpstart job creation as well as long-term economic growth.” He outlined several of the bill’s priorities, including the creation or salvation of up to four million jobs, as well as sweeping investments in health care, education, energy and infrastructure.

Among these investments are a new electricity grid with more than 3,000 miles of transmission lines, the weatherization of 2.5 million homes, health insurance protection for more than 8 million Americans, a renovation of over 10,000 schools, a project to repair thousands of miles of roadways, and an expansion of broadband Internet access.

Obama also laid out the rationale behind the stimulus, saying that “unprecedented action” is necessary in order to prevent further economic distress. “Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four,” Obama said. “In short, if we do not act boldly and swiftly, a bad situation could become dramatically worse.”

The president addressed the skepticism surrounding the stimulus package, pledging to “root out waste, inefficiency, and unnecessary spending”, while holding the government accountable for its actions. “We won’t just throw money at our problems,” Obama said. “We’ll invest in what works.”

Still, Republicans such as House Minority Leader John Boehner are skeptical of the plan’s effectiveness in rebuilding the economy. “I think a lot of Republicans will vote no because it’s a lot of wasteful Washington spending”, he commented on Meet the Press, repeating McCain’s call for less federal spending and more tax cuts.

Examples of “wasteful” spending cited by Republicans include millions of coupons to aid in the digital television transition, $200 million for new sod on the National Mall, and $360 million to fight sexually transmitted diseases, which includes funding for contraceptives. House Republicans have claimed it will take 10 years before the economy feels the effect of a stimulus, and that the combined spending of the stimulus and the financial bailouts of last year will leave future generations with over $2 trillion of debt.

In response to the stimulus plan being pushed through Congress, Boehner and Republican Whip Eric Cantor presented Obama with an alternative stimulus plan on Friday, one that relies exclusively on income and business tax cuts. “Our plan offers fast-acting tax relief, not slow-moving and wasteful government spending,” Boehner said. The counterproposal includes an income tax reduction that would save families an estimated $3,200 a year.

Despite this opposition, the stimulus bill is expected to pass through Congress by mid-February, as the Republican minority does not have enough votes to stop its approval. Senate Minority Leader Mitch McConnell expressed a general support of the plan at a White House meeting with Obama and other congressional leaders. “I do think we’ll be able to meet the president’s deadline of getting the package to him by mid-February,” McConnell said. The bill is expected to go before Congress for a vote on Monday, February 2.

Obama’s top economic adviser Lawrence Summers defended the stimulus plan while on Meet the Press. He said the bill was intended to balance the long-term initiatives mentioned above with the tax cuts desired by Republicans. He also said Obama was committed to spending three quarters of the stimulus money within 18 months.

Why You Need A Portable Hard Surface Steam Cleaner}

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Why You Need a Portable Hard Surface Steam Cleaner

by

Jenn Quilter

Do you have a hard time cleaning hard surfaces in your home, for example, the spaces between tiles? This is exactly why you need a portable hard surface steam cleaner.

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You simply fill the product with water, let it heat up, run it along the surface you want clean, wipe it down with a dry cloth, and your surfaces are clean. This is definitely preferable to the large amount of time and effort you’ll spend scrubbing these surfaces with just your arm and some cleaning chemicals.

If you plan on cleaning your house you’ll need to carry around a selection of various cleaning chemicals and tools, unless you have a steam cleaner for hard surfaces, then you just need the tool and a cloth. It might seem like you wouldn’t be able to get your house clean with just water, but the hot steam is very effective and gets into places you’re unlikely to get to on your own.

There are a variety of accessories that hook onto the end of the product that make cleaning various surfaces a lot easier, for instance most come with a squeegee for mirrors, hoses, and detail brushes among other tools.

Not only is this effective and easy, but the lack of chemicals has other bonuses for you. while you’ll have to buy the product upfront, over time you’ll make your money back and then some since you won’t be spending your money on cleaning solutions. And since you aren’t pouring chemicals down the drain this is a more environmentally friendly option as well. If being both wallet and environmentally friendly wasn’t enough of a bonus you also don’t have to worry about abrasive chemicals ruining your nice surfaces like hardwood floors, beautiful tile work, or expensive appliances.

Hard surface steam cleaners are both easy on the surfaces you care about, and effective at cleaning hard to clean places. These appliances are easy to use, effective, and don’t use expensive and environmentally damaging chemicals to get the job done.

Cleaning doesn’t have to be an all day chore. Visit my site to learn about using a

steam cleaner for hard surfaces

, choosing the right one for you, and

tips for buying a hard surface steam cleaner

.

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Why You Need a Portable Hard Surface Steam Cleaner

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Romania, 14th most attractive country for business relocation
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Romania, 14th most attractive country for business relocation

Tuesday, February 8, 2005

Bucharest, Romania – According to the Economist Intelligence Unit, Romania was the 14th most preferred country in the world for foreign companies looking to relocate their activities. This confirms Romania’s growing attractiveness for foreign investment.

The study examined the conditions in sixty countries, and took into account nine categories of indices: geographical proximity, political and security risks, economic stability, legislation, taxation, labour costs and skills level, and infrastructure. The scores given to the countries ranged from 1 to 10, 10 being the highest. The final composite score was calculated as a weighted average of the scores of the nine indicators. Some indicators, such as labour costs, had more weight than others.

Romania’s final score was 7.08 points, edged out in Europe by only Bulgaria (7.08 points), Slovakia (7.12 points) and Czechia (7.26 points). Romania’s strengths lay in the workforce cost category, where it received a score of 9.49, and in the geographical proximity chapter, where is received 8.35 points. It also scored well in the categories of economic stability and political and security risks, with 7.2 points each. The country’s weaknesses were mainly in the infrastrucutre chapter, where it received just 4.6 points.

Romania is further expected to improve its score in the coming years, as the effects of its new 16% flat tax rate on personal income and corporate profit come into effect, and as the country joins the European Union in 2007.

The worldwide leader in attractiveness for business relocation was India, with 7.76 points, due mainly to very low labour costs, high skill levels and a stable legal system. India edged out China by a considerable margin, with China being ranked second, with 7.34 points. China lags behind India mainly due to its lack of a well-developed legislative system.

Surprisingly, wealthy countries such as Japan, Norway and Denmark ranked very low, mainly due to their very high cost of labour.

How Cz Jewelry Is Made}

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Submitted by: Sara Berkley

Gold jewelry and silver jewelry have always enthralled people for ages. This even goes back to the time when the ancients first discovered gold and silver nuggets and personally hand-crafted precious bodily ornamentations. That was a very far away past. Nevertheless, we still have that miniscule space (well, not that miniscule, actually) in our hearts for gemstones and precious minerals set on the finest gold or sterling silver jewelry. For not too long now, jewelry makers have been making a killing selling cubic zirconia jewelry. In fact, we can now see a lot of cubic zirconia or cz jewelry like cz rings, necklaces, earrings, and the like at the jewelry stores. Along with that, cz jewelry can often be seen being worn by people on a daily basis. Although they are very commonly seen, they still have some sort of rare elegance to them.

A couple of questions that some people might wonder is what really is this cubic zirconia and how exactly is it made?

Cubic zirconia was first discovered in the year 1892. However despite this, it was not commercially produced until 1976 in the then USSR. Originally named, Fianit, cubic zirconia with a single crystal growth was created in this exact manner:

First, molten zirconia was poured into a thin shell of still-solid zirconia mineral encasement. After this, it was then cooled to form a solid single crystal growth. This singular process has remained virtually unchanged over the many years. However, there are efforts now that are being geared to improve on the inherent qualities of the cubic zirconia.

Because CZ jewelry is primarily engineered to look like diamonds, new methods like chemical vapor deposition is becoming more and more popular. This basically coats the CZ in a diamond-like carbon film. With this film, the so-called diamond effect ends up looking convincingly better. The process is not only beneficial to the look. This process also makes the material harder, more refractive, and even more lustrous.

Vacuum sputtering gold onto the cz finish is also an innovation of the times. This ingenious process creates an iridescent effect on the cz, making it somewhat less translucent. Now, if this seems a bit strange to you, you probably are not alone. However, of course, there is actually some logic behind this process. You see, naturally or geologically made diamonds are rarely deemed as translucent. Even some of the most expensive diamonds have a bit of opaqueness to it. They even comprise of a few occasional hints of impurities. The goal of the makers with this unique process is to make the cz as convincingly real compared to the elegantly known diamonds.

However, as the creation of just the cz is one thing, the creation of cz jewelry is a whole different story. Skilled jewelry makers and designers can create the most exquisite and enduring pieces of cz jewelry. And more often than not, the value of the cz rises because of the jewelry makers craftsmanship.

About the Author: Sara’s company, GonnaLuvIt.com, is a

cz jewelry

superstore. They have over 20,000 items in stock. She specializes in

silver jewelry

and

gold jewelry

including a large assortment of

cz rings

.

Source:

isnare.com

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isnare.com/?aid=254167&ca=Arts+and+Crafts }

The Aviator and Vera Drake scoop top prizes at the 2005 Orange BAFTA Film Awards
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The Aviator and Vera Drake scoop top prizes at the 2005 Orange BAFTA Film Awards

Sunday, February 13, 2005

LONDON – The big-budget Hollywood movie The Aviator and the low-budget Brit flick Vera Drake have scooped the main prizes at the 2005 Orange BAFTA Film Awards. Four gongs went to The Aviator with the top ones being Best Film and Cate Blanchett for Best Supporting Actress. Vera Drake got three gongs with Best Director, Best Actress & Costume Design. Jamie Foxx got Best Actor with Ray and Clive Owen got Best Supporting Actor with Closer.

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Miner dies after being struck with hose in Central Western NSW
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Miner dies after being struck with hose in Central Western NSW

Thursday, July 27, 2006

A 39 year-old man working at a coal mine at Lidsdale, near Lithgow in the Central West of New South Wales, Australia was found dead on Wednesday. It is believed he was struck by a ruptured hydraulic hose.

The man was discovered by a colleague at around 4:30PM and was around 8 kilometres underground from the mine’s entrance. According to police, the man was collecting oil samples when the accident occurred.

Police and the NSW Department of Primary Industries are conducting an investigation into the incident and will prepare a report for the coroner.

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UK PM addresses joint sitting of Australian Parliament
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UK PM addresses joint sitting of Australian Parliament

Monday, March 27, 2006

The Prime Minister of the United Kingdom Tony Blair addressed a special joint sitting of the Australian Parliament March 27, 2006. After introductory speeches by both the Prime Minister of Australia John Howard and the Leader of the Opposition Kim Beazley, Blair spoke on globalisation and trade, security, terrorism, and the war in Iraq and Afghanistan. He also touched on the Middle East and climate change.

Mr Blair started by reminiscing about his childhood, when he lived from the age of two until five in Adelaide, South Australia. “I remember returning from the hospital where my sister Sarah had just been born, looking at her in the back of the old Austin that we drove; running errands for our neighbour, Mr Trederay; taking showers under the garden hose in the heat on the lawn; visiting friends up-country in the Adelaide Hills; and being chased by magpies as I ran across the open ground near our home.”

He talked about the inevitability of Globalisation, but warned that it should be tempered by social justice. “Globalisation is a fact, but the values that govern it are a choice. We know the values we believe in: democracy and the rule of law, but also justice, the simple conviction that, given a fair go, human beings can better themselves and the world around them.” He later linked security with justice, saying “there is no prosperity without security and no security without justice. That is the consequence of an interconnected world.”

He described the two perspectives on trade as “open or closed”, meaning those who support free trade and reduction of tarrifs, and those who are more protectionist. Mr Blair was firmly in the “open” camp, but he warned that poverty must also be tackled. “Everywhere you look today, the tide of protectionist sentiment is flowing. In this World Trade Round we have the opportunity to make it ebb. At stake, obviously, is our commitment on world poverty and development.” According to Blair, rich western nations have a long way to go before their markets can be considered open. “Europe’s agricultural protection is a policy born of another age and it is time to end it. But change in Europe alone is not the answer. America must open up; Japan, too.”

He also linked trade to development, saying that the connection was a matter “of justice, because the poorest nations need to be able to stand on their own two feet and trade in our markets.”

He warned of the immediate threat of “Islamist extremism”, but argued that terrorism did not begin with the September 11 attacks in the United States, but rather had a much longer history. “It simply came to our notice then. Its victims are to be found in the recent history of many lands, from Russia and India but also Algeria, Pakistan, Libya, Saudi Arabia, Yemen, Indonesia, Kenya and countless more.”

He acknowledged that the decision to invade Iraq was as divisive in Britain as in Australia, but sought to justify military action, saying “for almost three years now we have been in Iraq with full United Nations support. From the outset our forces in Afghanistan have been there with UN authority. In both cases, there is the full support of democratically elected governments.” He also spoke of the gains made by both Iraq and Afghanistan. “In each case, the people have, for the first time, been offered a chance to vote. In each case, they have seized it, despite obstacles we can scarcely imagine.”

He spoke in support of the US Alliance, but said that maintaining some independence was important. “I do not always agree with the United States. Sometimes they can be difficult friends to have.”

Mr Blair called on the United States to work for security in the Middle East, and especially for a two state solution. “once the Israeli election has taken place, we must redouble our efforts to find a way to the only solution that works—a secure state of Israel and a viable, independent Palestinian state.”

Mr Blair emphasised the need to focus on climate change, and said that it was even more important now with the crisis over oil prices. He noted the differences between the Australian and British approaches to climate change, and argued that co-operation was needed. “At some point we must bring it all together. There will be no agreement worth having that does not involve the United States, China and India, as well as the rest of us.”

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John Mc Lemore’s “Dadgum That’s Good!”}

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John McLemore’s “Dadgum That’s Good!”

by

potholecountry

Ever since the backyard barbecue crowd discovered the turkey fryer and got hooked on it’s ability to produce a juicy tender turkey in 45 minutes or less, they have longed for a turkey fryer that could be safely used indoors. Their dreams were answered when the McLemore family teamed up with one of the best known turkey producers, Butterball, and produced the now famous Masterbuilt 20010109 Butterball Professional Series Indoor Electric Turkey Fryer.

With the enclosed burner and absence of open flame this fryer is ready to go to work for you indoors. It even has a filter to help eliminate odors. This electric fryer is not only convenient and clean when used indoors but it actually uses up to 30% less oil. The thermostatically controlled electric heat source keeps the oil at the proper temperature without constant monitoring. Capable of handling up to a 14 pound turkey this fryer will also allow the home cook to serve up such tasty treats such as fried potatoes, fried sausage, seafood including shrimp and lobster and other easily prepared treats.

With the included cooking basket you will find your family demanding more of your homemade doughnuts, onion rings, french fries and other foods that will keep the kids at home for meals and not down at the local fast food store.

The fryer is has a stainless steel outside shell and a porcelain-coated fry pot. A combination of red and green “power on” and “ready” lights along with a simple thermostat control knob make this appliance simple to use and safe for use in your kitchen or enclosed sun room. Bring the fryer where the company is and you won’t have to spend hours toiling away in the kitchen while everybody else is enjoying the company.

To get you quickly on the right path to perfection with this appliance, John McLemore whose family manufacturers all the Masterbuilt products has written the, “Dadgum That’s Good!”, cook book that describes over 125 recipes including smoking, grilling, frying, boiling and steaming. John’s appearance on the popular Mike Huckabee Saturday night show wowed the audience when he produced a fully fried turkey, new potatoes, sausage, shrimp, vegetables and even fried Oreo cookies all during the one hour show.

If your not sure you are ready for your own electric or gas turkey fryer perhaps getting a copy of John’s book, “Dadgum That’s Good!” will help you make a decision. Even with out the turkey fryer you could put the recipes in his book to good use especially during the upcoming holiday season.

Find more tips and suggestions for your turkey preparation here:

“Dadgum That’s Good!”

and here

Outdoor Turkey Fryer

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John McLemore’s “Dadgum That’s Good!”

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