Business Basics: End of the Year Prep

The end of the year is right around the corner, and every year we hear small business owners panicking about December’s rapidly approaching end, wondering what they have to do to end the year right. Not to worry – ending the year is actually pretty easy, as long as you don’t wait until the last minute to get everything done! So if you haven’t already, start thinking about…
End of Year Prep

Submitting any filings or dissolutions

Some of the most common questions we are asked revolve around the best time to form an LLC or incorporate. And while there are no ironclad answers to those questions, the beginning of the year is normally a good time to send in that paperwork. Deadlines and renewal dates are easier to remember, staying on top of your taxes is simpler, and you can even file your paperwork early and miss the beginning of the year rush if you opt for a delayed filing. Continue reading

4 Simple Things you can do to Prepare your Business for Tax Season

owning and operating a small businessIt might seem like you just finished filing last year’s taxes (and if you got an extension, then maybe you actually did!) but next tax season is already on the horizon. And while preparing to file might not be at the top of your priority list, getting a jump start will eliminate a lot of unnecessary stress when it comes time to submit your business tax return.

To help make your life easier, here are four things you can do right now to prepare your business for tax time. Continue reading

ABCs of Small Business Industry: I is for Insurance

This week we decided to cover a relatively broad small business sector – the insurance industry. Now, the insurance industry is a heavily regulated, slightly complex field to work in. There are tons of hoops that independent agents and brokers have to jump through before they are even allowed to open their doors. Insurance Industry But it is a vital industry – in some cases insurance is required by law – so a business could do quite well within it. So how do you start a company in the insurance industry? And is it worth all of the effort?

How do you get started in the insurance industry?
Insurance is a regulated field, which means you need to be licensed before you can begin. You also usually have to take some sort of course as well before the state will issue you your license. Continue reading

Business Basics: 3 Reasons You Need a Delayed Filing For Your Business

small business tax deductionsWhen a business owner files for a delayed filing, he or she is putting their business’s paperwork on hold until a later date. This may not seem entirely productive because, often, getting paperwork to go through the state for you business can be a waiting game, anyway. But a delayed filing can be strategic for the success of your business when used correctly.

Here are three reasons a business may opt for a delayed filing: Continue reading

ABCs of Small Business Industry: C is for Construction

The construction industry has had a rough few years. After the economy dipped and the Great Recession began, a lot of construction and housing projects were suspended or shut down, and the industry was easily one of the hardest hit. Because of this, many are apprehensive to start their own construction firms, and while construction is slowly picking up, one of the biggest concerns entrepreneurs in this industry have is how to protect themselves if the economy dips again. Construction IndustryBut if you start off on the right foot, and take a few precautions, you can run a successful business in the construction industry.

How do you start a construction company?

Construction is a bit different than other industries. For one, you can’t just file for a ‘Doing Business As’ name and start building houses. Continue reading

Business Basics – Estimated Tax Payments

Estimated tax payments are one of the biggest shocks for new business owners. They know that they have to pay taxes, they just don’t realize they have to send in a check four times a year! Most businesses that expect to more than $1,000 – or $500 if the company is incorporated – in taxes have to make estimated payments to the IRS. And, since the next quarterly payment is due on September 15th, we thought it’d be a good idea to do a quick rundown of what estimated tax payments are.

Estimated Tax Payment

What are estimated tax payments?
Exactly what they sound like. These payments are simply what you’d normally owe on your income. However, since you don’t have an employer to withhold and send in what you owe, you have to do it instead.
Continue reading

How Quick Business Loans Can Encourage Business Turnaround

How Quick Business Loans Can Encourage Business TurnaroundIf you need quick business loans to help you out of a short-term cash flow crisis, what you don’t need is hassle when making these loan arrangements. We know all too well that any delay in making those funds available can lead to an operational headache, or threaten the survival of your business.

Reasons you may need a quick business loan

There could be an unexpected interruption in sales such as a delay in the delivery of stock that slows the flow of money coming into the business. It could be that you need quick business loans to pay for expensive new equipment or machinery in order to maintain production or cope with a sudden increase in demand. In difficult trading conditions, the customer has also become savvier, and more reluctant to make an immediate purchase, if they even make a purchase at all. As a result the retailer is late in paying you, the distributor. They, in turn, seek extended payment terms in order to assist their own cash flow. Suddenly, your usually strict 30 days terms of credit are being extended to 45 days or even 60 days. You will be paid, eventually, but later than you were expecting.

A short term business loan does not always have to be used to plug cash flow; it can be used as a tool to speed up business turnaround. Taking the right loan at the right time can be a great tactic to help you take advantage of business opportunities that come your way. The speed in which you can secure funding may determine how quickly you can push out in front of your competition or equally ensure your business does not plummet further into uncontrollable cash flow problems.

Continue reading

ABCs of Small Business Industry: B is for Banking

As we enter week four of our series, we decided to look at a slightly different industry – banking. Now, focusing on banking may seem a bit odd. After all, most people don’t consider banking as something an entrepreneur can even get into. And while there are loads a regulatory loopholes to jump through, plenty of entrepreneurs do start their own bank! And running a bank can be quite lucrative. So if you have experience in the financial industry, and are looking for a change, this could be just the post for you! banking

How do you start a bank?

Like any business, you need to identify a need. Most communities are served by big-name banks like Chase or Bank of America, and people gravitate towards names they recognize. But even if it feels like your community is over saturated with corporate banks, there could be a place for a small, community bank, like if you decide to focus on serving a particular section or area of the community. Some people also like being able to meet face-to-face with a high-level executive to talk about loans or their account – something they’d never be able to do at a corporate bank.

If the market looks good, you then need to work on getting everything organized. Most states require banks to have multiple directors, who then put in an initial offering to get the bank started, usually around 25% of the bank’s starting capital. Since banks need a lot of capital to run, this is usually a substantial amount of money. Most banks sell off shares to raise the rest of their capital.

When your ducks are in a row, you file for a state or federal charter. Filing this form typically costs thousands of dollars, and requires a substantial amount of preparation. You’ll need to include information like feasibility studies, applications for the directors, projected costs, projected salaries – the state or federal government effectively needs to decide whether or not you’ll be successful before granting a charter. After this, you apply for deposit insurance from the FDIC, which requires banks to prove they have enough capital to cover any risk and losses. It will take a few months before the charter application is processed and, once it is approved, you normally have about a year to start the bank officially.

What business structures are best suited for banking?

Because banks are required to have directors, executives, and shareholders, a bank has to be some sort of corporation. However, in some states, a bank is an entity in itself. Though it is run in the same way a standard corporation is.

How stable is the banking industry?

Very. Because banks have to apply for a charter, an outside organization effectively reviews their business plan and target market, and determines whether or not the idea is viable. Banking costs a lot of money, but if you get a charter, you can usually bet that you’ll be successful. The rate at which banks fail has also slowed substantially as the economy has recovered.

Interested in community banking? Have any questions about the banking industry? Leave a comment below, or give us a call at 1-877-692-6772!

Never Miss Another Sales Tax Due Date!

Never Miss Another Sales Tax Due Date!Guess what? You owe sales tax to at least one state this month.

Did that get your heart going? Then you’re like business owners all over the country trying to get sales tax under control but struggling to do so. It’s one of the most annoying aspects about doing business these days, particularly for eCommerce businesses.

Why? Because so many states are trying to get as much money as they can, including from online business owners who sell taxable goods to customers in their state. Do you have an employee in one state? You likely have sales tax nexus there. Do you store your inventory in a warehouse in another state? Then you’re likely required to collect sales tax in that state, too.

Some states want your payments monthly. Some want them quarterly. Some even just annually. But if you’re paying sales tax to a bunch of states, how are you supposed to keep up with all these due dates?

Continue reading