Monthly Archives: March 2011

Last Minute Tax Tips

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If you’re a procrastinator like me, then you’re just starting to prepare for the upcoming tax due date. As it turns out, you’re not alone. Many firms responsible for sending out tax information to the taxpayers don’t even deliver the information until February or March, making it very difficult for those taxpayers to get their tax returns done on time. In fact, over 40% of Americans file after the beginning of April. If you fall into this category, don’t be discouraged and give up on your tax returns! There is still plenty of time to get it all done! Here are some useful tips to getting your tax return filed properly in the next two weeks.

File Online. One of the best moves during this tax season is for you to file online. A great (and surprising!) thing about filing online is that there have not been very many computer problems, and the IRS is only working to make it better by improving the process. Over two-thirds of people filed online last year, and that number will only be increasing. The updated and improved website will help guarantee few problems. However, it is always advisable to not wait to file online until the night before taxes are due as websites and the internet in general can be very unpredictable when too many people are using them.

Use a Tax Preparer. If you’re having a problem figuring out your taxes, it may be time to bring in a professional. There are a variety of ways to get your taxes done right though, even if you’re having problems figuring out the labyrinth of rules and regulations that is the tax code. A certified public accountant (“CPA”) can be hired to file your taxes, or a specialized tax preparer can do the same thing. Since this is the busiest time for these professions, the earlier you get your information in, the better. Another option is a place like H&R Block. H&R Block will help you through the tax process and explain any aspects that are confusing or unclear. H&R Block also offers representation in the event of an audit. For a more do-it-yourself option that offers guidance and major assistance, TurboTax and H&R Block Home are software you can use at home to calculate your taxes. The program will aid you in finding applicable deductions, credits, and exemptions for your taxes. Finally, there are numerous free e-filing options on the IRS website that supply interactive forms and calculators. There are many options for help in preparing your taxes, from someone to take over the process for you to calculators that help you figure out final numbers after you’ve done all the work yourself. Pick the system that works best for you and your life and get a move on!

Apply For a Tax Deadline Extension. Last but not least, if you feel that you cannot get your taxes completed and submitted on time, file Form 4868 as soon as possible. This will extend your tax deadline by six months, allowing you to complete your taxes correctly. You can file this form online as well, so it is a simple way to avoid running into problems with the IRS. Don’t let this be an excuse to wait though! An important point to note, this form does not extend the time to pay taxes and you must make a payment of your estimated taxes by the regular due date. Failure to do this may result in interest or penalties.

Regardless of how you get your taxes done or whether you file for an extension, the most important thing is to actually file your taxes. The IRS has estimated that it has over $1 million in unclaimed refunds, some of which could be yours! By filing a tax return, you are saving yourself a lot of time and hassle down the road and protecting yourself from the ire of the IRS.

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The 5 W’s of Business Blogging

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We all read blogs to get a sense of what is going on with the world. We read informational blogs, entertainment blogs, and solely news related blogs. Never has it been easier for an individual to have his or her voice published. The same opportunity is available for small businesses, but should you join the blogging community? ABSOLUTELY! Blogs provide a platform for you business to send a clear message to your customers. Below are the 5 W’s regarding blogging and why you should jump on board.

Who?
Yes, your business is the obvious who. However, make sure you address who specifically will be in charge of your blog. Often, small businesses hire a marketing intern for this job. This is a great idea. First, make sure that the blog author is aware of a few important things. The blogger should have a clear understanding of the purpose and mission statement behind your business. Tailor blog content not only to issues surrounding your business, but expand your articles to include different types of customers. You want your blog to be a clear representation of what your business is all about while appealing to a wide audience.

What?
What should you blog about? If you are a new start-up you could blog about the issues you faced- create a trouble shooting entry. Think about your community as a whole and blog about your industry. Do you know of other products, applications or ideas that will help your community? For example, if you are a bakery and recently changed the type of eggs you buy due to how it affects your product, blog about that experience. Offer relevant advice. Go nuts! One word of caution- If you’re going to pump out regular content that is meaningful, you obviously need to blog about a topic in which you’re knowledgeable, thoughtful and passionate. Without these three things your content may be ill received, if read at all.

When?
How often should I blog? This can be a difficult question to answer. Professional bloggers often update daily, sometimes twice a day. This is not recommended for small businesses. A few times a week, at most once a day, is a good schedule. Although you do not want huge lag time between entries, it can be beneficial to let your entry ‘simmer’ for a few days to gain attention. Also- most online blog traffic occurs between 9a.m. and 2p.m EST. Therefore, post your blog in the early afternoon.

Where?
Where do I publish my blog? Several publication options exist. Check out sites such as WordPress.com, blogspot.com and Tumblr.com. These sites will walk you through the steps to creating your blog including your background colors, linking it to other sites and actually publishing. If your business has a website, and it absolutely should, it is often smart to provide a link to your blog on your site. Often, customers cannot get a sense of ‘who you are’ by solely looking at your website. Also, posting a link to your blog on Facebook or Twitter can also increase traffic. Your blog can be your voice. Connect with the customer and let them know what you are all about.

Why?
Spread the news about your small business! If you care about accessing customers, reaching an audience, communicating your vision, influencing people in your industry, marketing your services or just plain engaging in a dialog with others in your industry a blog is a great way to achieve this.

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Comparing Business Structures

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One of the most difficult steps in the start-up process is deciding which business structure fits your business idea best. There aren’t that many options, but the distinctions between the types of entities can be overwhelming. A lawyer can help you make the decision but with a little research, you may be able to choose yourself. Here are some pros and cons of the major business structures you can choose from.

Sole Proprietorship. A sole proprietorship is the default business structure if you don’t file anything with the Secretary of State. This isn’t always the best choice for everyone, as it can result in a higher frequency of audits and it doesn’t provide protection for your personal assets and you can be personally liable for business debts. However, it is simpler to get started and the profits or losses can be reported on your personal tax return, without filing separately.

Limited Partnership. A limited partnership offers protection for the personal assets of the limited partners, however the partners who are actively involved in management do not have any protection. This is a nice option for many companies that focus on investing in real estate as it allows money to be raised for the business without involving outside people in the management of the business. This type of structure requires a filing with the Secretary of State.

Limited Liability Company (LLC). The Limited Liability Company, commonly known as an LLC, is one of the most popular entity structures among businesses right now. It’s a relatively new structure that combines the benefits of the corporation structures but eliminates some of the negative aspects. Specifically, the LLC protects everyone in the company from personal liability for business debts and allows losses to be “passed-through” to the people involved in the company. This “pass-through” option is a huge benefit to the LLC because it means that the people involved in the company can claim the losses of the company on their personal tax returns. In an LLC, you can take on passive investors to raise financing and corporation maintenance is fairly easy.

C-Corporation. A C-Corporation is the most general type of corporation you can have. The owners of a C-Corporation are mostly protected from personal liability for business debts, although if the corporation doesn’t follow the formalities of a corporation, there can be problems with personal liability. As a result, the formalities such as filing annual reports, maintaining separate bank accounts, keeping track of meeting minutes, and holding shareholders meetings are very important. A benefit of operation a C-Corporation is that the owners can share corporate profits with the corporation, lowering the overall tax rate. A C-Corporation can also have unlimited number of shareholders. A third benefit of C-Corporations is that if you wish to take your company public (selling shares over a public trade, i.e. NASDAQ or NYSE), you will need to be in a C-Corporation so starting out that way saves trouble down the road.

S-Corporation. An S-Corporation is a C-Corporation that has specially elected to be treated as an S-Corporation. It has the same personal liabilities protections and potential issues although it has significantly more stringent formalities. An S-Corporation can only have a certain amount of shareholders and the shareholders must meet specific requirements. An S-Corporation also allows for corporate profit sharing, but the allocations must be done in accordance with the shares each owner owns. A benefit is that owners can use any losses of the corporation on their personal income tax returns, reducing personal tax liability in many instances.

Another thing to consider when choosing a business structure is that your state may have some restrictions regarding the types of businesses that can operate in each structure. The Secretary of State for your state may be able to provide some guidance about this or an online filing service can as well while they’re filing your paperwork, if you choose to use them.

As you can see, there are numerous advantages and disadvantages to each type of business structure. Depending on the type of business you are starting, some of these disadvantages may not affect you as much as others. The only thing is to make sure that the business structure works best for you, and you are familiar with the applicable requirements. Let MyCorporation help you get started! Learn more HERE!

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The Five Second Rule

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No, we aren’t talking about the food rule- we are talking about advertising. The number one complaint of many advertisers is they’re receiving anywhere from a mediocre to lukewarm reception of their ads. It’s a real possibility that some of these ads fail due to the fact that they’re not built for today’s environment. As you look at your marketing, keep in mind that the world of communication is moving at a mind-numbing pace. The strategy of sending out pawns first while venturing into a slow, laborious spiel no longer works. On the contrary, it is absolutely critical to unleash your very best at the outset.

Five seconds is the maximum amount of time given to make this initial impact. Think of it as your first impression. If you can keep your audience past the first five seconds, it is likely the will focus on the rest of your ad. Think of the five second rule in the following ways:

Outdoor Advertising
Short. Eye catching. Unique. Think of these words when creating your advertising scheme. You only have a few brief moments to make a large impact. Consider using color, but do it sparingly. Make sure your ad doesn’t look like a highlighter commercial, (unless that’s what you are advertising!). A pop of color and a brief, bold statement will ensure your ads are not only seen but make a lasting impact.

Television and Radio
Remember that viewers/listeners are constantly tuning in and out. In addition, they’re spot-hopping with the latest DVR technology (this is now true for radio). Consider using humor, or an educational fact to begin your ad. Mention specials, offers and give aways at the beginning. You could also start with a jingle. Start your ad strong in order to capture the attention of your audience.

Direct Mail Piece
Unlike other media, direct mail is tangible – a major plus. However, this does not guarantee success. Make sure your mail is not tossed into the junk mail pile. Feature a coupon on the outside of the envelope. Create a piece with uncommon dimensions. Use heavy or patterned paper for impact. Go a step further and present your best offer while avoiding junk mail-status.

Email Marketing
The email marketing world is a volatile place; even the most prestigious of companies can sometimes find themselves being ignored or worse – sentenced to the spam folder. Carefully consider your approach. Make the subject line informative, bold and brief. Before sending your email, run it through a spam checker. Finally, avoid too many images. Loading time may cause people to exit the email before reading it.

Consider these tips next time to visit your advertising scheme. Informative, bold, eye catching advertising will do wonders for your businesses marketing campaign. Above all, remember that the five second rule doesn’t only apply to food- it is the key to successful advertising.

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Financing Made Simple

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Financing a start up is daunting for many entrepreneurs. While hunting for cash, many find themselves sucked into flashy gimmicks promising “Free Money!” and “Fast Cash Now!” from websites and hiring consultants. Unfortunately, most of these promises are empty, leaving many small business owners searching for cash.

As difficult as it may seem, small business funding is available. For qualifying businesses, there really are opportunities to land free money from state, county and city governments, as well as private foundations and corporations.

Technology startups traditionally have the best chance of getting grant funding, often through the federal government’s Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs. These programs are lucrative, awarding more than $2 billion each year, but both require a tight match with exacting requirements.

Finding grant money for non-tech businesses is a little tougher. The first step: Figure out if you qualify for any special small business certifications. Some of these special certifications include women or veteran owned businesses. Federal and state governments sometimes give priority for grants to these types of business owners.

Utilize the internet to connect with your local government. Check their websites to find the economic development agency or equivalent in your area. These agencies often offer government sponsored grants in an effort to attract new businesses. Grants are also offered in order to encourage business owners to make their business economically friendly. Unfortunately, in the current economic state, government funding is difficult to secure. However, patients and perseverance can pay off.
Another way to generate cash flow is to find partners or investors. Finding a few partners and/or investors that share your interests and you get along with can be the key to successful financing. Not only do partners and investors give money, finding a couple of partners or investors can make you money in two other ways. First, they involve themselves in the business and have a vested interest in the business doing well. They may bring other types of experience to the business and this is helpful for getting your start-up going in the best possible direction. The second way partners or investors help make the company money is that many other financing entities (including banks, grants, trade associations, and venture capitalists) feel more comfortable giving money to a business that has partners and investors. Getting involved with trade associations that apply to you, attending conferences that invite people who share your interests or expertise, and subscribing to industry journals are three great ways to finding compatible partners and/or investors.

Thankfully, the economy is improving. Credit is coming back to midsize and larger companies faster than small businesses. That’s because small businesses are riskier. Small businesses should benefit from general economic conditions improving and, as that happens, lenders should feel comfortable taking on more risk and making more small-business loans.

Learn more about financing your small business HERE!

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Take Your Business to the Next Level: Apply for a Trademark!

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After starting your business and establishing your initial customers to reach out to, it may seem like there isn’t much to do except wait for the customers to come rolling in. On the contrary, this is the perfect time to start your business down the course for success! One of the most important (and easiest) ways to do this is to register for a trademark for you business name, product name, logo, or company slogan. In comparison to the number of people who open up businesses each year, not many people take advantage of this step but it can really save you in the end. The benefits of registering a trademark for your company name and/or product are twofold: protection of your business and brand recognition.

First, trademark registration provides protection to the company you have worked so hard to create. All the time and energy spent making sure that you are the best can be wasted if a similarly named company moves into your neighborhood and starts operating poorly. Consumers may then start confusing your company with theirs which is great for them, bad for you. Registering a trademark protects you from this scenario by deterring other entrepreneurs from using your company name and also provides a method of legal recourse for those situations when another company starts using your name anyway.

The second benefit of registering a trademark is to promote brand recognition. If you think of all the products and company names you encounter every day, many of those products are registered trademarks. “Branding” is vital to a company, especially for advertising and consumer recognition. Registered trademarks provide a national, and even sometimes international, license for use of your company and/or product name. This allows for uniform advertising on a national level that promotes name recognition anywhere you advertise. Consumers from California to New York that search for your product online or hear about your company will associate that name with your company only; a very valuable tool for increasing your company’s business.

After you’ve worked to bring your business idea to life, protecting it becomes important. One way to do that is through the use of trademarks. Companies with similar names or offering similar products can steal customers away or negatively impact your reputation. Registering your business name and product protects against this scenario and allows you to be a unique company, saving you from consumer confusion and promoting your brand wherever you want to operate.

Ready to apply for a trademark? Let MyCorporation help! Learn more HERE.

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Maintain Positive Cash Flow in a Tough Economy

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Staying out of the red in this economy can be difficult. Many small business owners feel the pinch each month, barely making ends meet. Yet despite these troubled times, profit is possible! The key to ensuring a positive financial future is creating a plan. Instead of simply letting cash flow just happen, it should be actively monitored and managed. Here are a few tips for maintaining positive cash flow:

1. Create a Plan
While this tip sounds like common sense, many small business owners do not have a concrete financial plan in place. This plan can make or break your business. After running your business for a few months, look back through your records and look at your expenses. Learn how your business works and what things are vital to your survival. You need to create a roadmap- what you think will happen in the coming months. Look at your history and create a plan- the more detailed the better. The more you can predict what you will spend vs. what you can cut out, the more secure your financial future will be.

2. Manage Your Cost Structure
Fixed costs should be addressed every few months. What you need currently may not make sense in the future. For example- make sure that your salaried employees are vital to your business. We are not suggesting that you fire people; rather make sure the money spent is vital toward your business. Clearly part time or flexible employees are less expensive. Figure out what is best for your businesses bottom line. Also look at your rent and utilities cost. If you are experiencing a money crunch, talk to your landlord or utility company and see if they can help reduce payments for that month. Being proactive about your situation may help you reduce costs thus keeping you out of debt.

3. Work Together
If your business can help promote another business- do it. Working together with other small business can save costs as a whole. Try to create agreements promoting other businesses or directing your customers toward them to secure their services in lieu of payment. If your client needs a CPA- find CPAs in your area to whom you can refer your customers. In return, ask if the CPA can help you come tax season. Use social media sites such as Facebook and Twitter to promote your business, and other small businesses in the area. Helping the small business community as a whole will strengthen business around you, in turn strengthening yours.

Create a financial plan and consider your businesses bottom line. Utilize money saving tips that you use in your personal life in your business life. Saving money and making a profit is harder now than ever. However reaching out to other small businesses and working together can help strengthen the entire small business community! Learn other ways to manage your business HERE.

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Small Business Trends in the Month of March

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Welcome to March, the month of… nothing really. The year always starts out with so much promise, so much enthusiasm! Then fast forward three months and you’re missing the holidays already and summer just can’t come fast enough. In case this has been your attitude lately, cheer up! The truth is that the economy is looking better and better as the days pass and consumer spending is increasing as a result. This means that businesses of all kinds are finding themselves with more customers and more profit. Many businesses aren’t necessarily feeling the improvements yet but 2011 is predicted to be one step further on the road to economic recovery. Here are some forecasts that economists and analysts alike are making about the economy and finances in 2011. Also included are some tips on how to make the improvements we are seeing work for you.

1. Credit is Becoming More Accessible. One of the biggest improvements in the economy for small businesses has been the increasing availability of credit to business owners. The National Federation of Independent Business recently published a report on small business economic trends stating that 92% of small business owners surveyed said that their credit needs were met or they weren’t seeking credit. Another report by the National Federation of Independent Business said that 60% of businesses that sought credit last year received all or most of what they asked for. The most cited reasons for a business not getting the credit it wanted was when the business wanted to “prop-up cash flows” or when the credit application listed a variety of uses for the money. One of the ways to avoid this problem and get the credit you’re seeking is to make a specific plan for the use of the loan money and clearly convey that to the loan officers without making it seem like you just need the money because your profit is down in this economy. Banks are unwilling to loan money to a business that isn’t putting the money towards making more money because loaning money to pay off back loans is only a temporary fix. Another way to improve your chances of being approved for credit is have your financial books audited by a certified public accountant. Finances that have been scrutinized are more appealing to banks offering loans because it alleviates some of the fears the bank has about the viability of the business.
*Aside from credit: venture capitalists are behind more initial public offerings this year than they have been since 2000, indicating an increasing willingness to financially support small businesses.

2. More People are Getting Jobs. The unemployment rate hasn’t shifted this year as much as expected but there are indications that more small businesses than not are looking to hire sometime this year, although this may come towards the end of the year. In addition, people are still going in to business for themselves, increasing the opportunities for people to find work, both as business owners and as employees. Women and minorities are especially taking advantage of this shift in the economic structure to go into business for themselves, although senior citizens and veterans are close behind. The best thing about these groups of people creating their own businesses is that the members of the groups aren’t necessarily centered around youth. In fact, many of the new business owners in today’s world are actually experienced professionals in a variety of fields. This tends to make the businesses more stable from the start and to offer more potential for the business to be enduring and successful. Marketing yourself for a new job under any economic conditions has a lot to do with persistence, but there are some new trends in the field of employment to work with as well. One big thing is that more and more, hiring businesses are looking at your past-work experiences and internet “footprint.” The increasing use of technology in the work place has made it a lot easier for a future boss to contact your previous bosses and fellow employees, as well as check you out on social networking sites such as LinkedIn or Facebook. Fully disclosing any prior work problems can really help your future boss prepare for speaking with an old boss, plus it gives you an opportunity to shade any negative information in the best possible light for yourself. In addition, carefully monitoring any social network sites you belong to is key to managing your online image, especially with future employers in mind.

While it’s nowhere near as bad as it was a few years ago, the road to recovery and boom is long and difficult. Hopefully these two tips have brightened up your outlook for 2011 and given you some good ideas to turn an average situation into a great one! Remember, there are always ways to improve your business, many of them are inexpensive or even free. Building a customer base and marketing yourself appropriately are key ways to handle any downturns your business may face, don’t let yourself be discouraged! Just come up with a new tactic!

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