Apply Online The Internet EIN application is the preferred method for customers to apply for and obtain an EIN. Once the application is completed, the information is validated during the online session, and an EIN is issued immediately. The online application process is available for all entities whose principal business, office or agency, or legal residence (in the case of an individual), is located in the United States or U.S. Territories. The principal officer, general partner, grantor, owner, trustor etc. must have a valid Taxpayer Identification Number (Social Security Number, Employer Identification Number, or Individual Taxpayer Identification Number) in order to [...]
Sub-Chapter S Corporation First the organization must register with the Department of Revenue of the Secretary of the State or other agency identified within their state to file their Articles of Incorporation. Once they file these documents and receive verification back from the state, the business then files the IRS Form 2553 to elect the S Corporation status. S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their [...]
The federal and state and local governments have requirements and the regulations of doing business in the U.S. Obtaining the information and necessary rules is important to prevent the risk of penalties, interest and to reduce the risk of failure due to noncompliance. To start a business one only has to start doing business Under these terms the person would operate under their own social security number File a form schedule C (business tax return form) This schedule is then attached to the individual Federal Form 1040 The person will be responsible to pay what is called self-employment tax (SE) on [...]
How to save tax dollars by hiring family members Child employed by parents Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child. Refer to the “Covered services of a child” section below. Payments for the services of a child under age 21 who works for his or her parent in a trade or business are not subject [...]
How to write a Business Plan The new entrepreneur is more educated in all areas of business than ever before. The student understands marketing, finances, opportunities, timing and how to implement. Success today involves: Motivation Education Innovation Implementation The new entrepreneur has exchanged GUTS for BRAINS The collection of the ideas is materialized in the form of a Business Plan. The business plan takes the abstract and converts it to the concrete. It gives the developer a structure to understand the business, the industry, the market places, the opportunities, the threats, the barriers and the viability and sustainability, if any, of [...]
How to write a marketing plan In general, the Marketing Plan includes: Market Analysis Market Definition Customer Profile Competition Risk Sales Strategy Capital Requirements The Marketing Plan is the most important part of the business plan as it identifies if there is a need and if the entrepreneur wants to continue the business plan. It describes how a company will react and manage market conditions to generate sales. Its detail is: 1. The market definition and its opportunities Who are the customers What are the demographics and psychographics Prepare profiles of the potential customer Learn the lifestyle and priorities What is [...]
Employee or contractor? 20 Factor IRS Test The IRS uses a 20-factor test to determine whether a person is an employee. In connection with this test, the IRS has stated the following: . . . 20 factors have been identified that indicate whether sufficient control is present to establish an employer-employee relationship. The degree of importance of each factor varies depending upon the occupation and the context in which the services are performed. It does not matter that the employer allows the employee freedom of action, so long as the employer has the right to control both the method and the [...]
Small business does not have the resources that big business has so how do they operate? The owners of small businesses need to wear many hats and have multiple skill sets. From finance to accounting, from marketing to human resources, from operations to negotiations, the small business person needs to understand all the elements of doing business. This includes insurance needs and banking needs. Where and how does the small business person have the time to fulfill all these needs and functions?