When we started our Autopilot sales tax solution, TaxJar, we talked to merchants of all kinds. And one of the things we found out over and over again was that sellers were spending hour after hour on sales tax compliance. Continue reading
When 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
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. But 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
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.
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.
If 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.
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!
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!
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?
Foreign bank accounts are one of the most misunderstood tools of business banking. When people hear about foreign bank accounts, they picture shady, offshore Cayman Island accounts, or the strict, private banks of Switzerland. The reality is much less exciting. There are plenty of reasons why a business would want a foreign account. International banks facilitate international business, which helps pay for foreign contractors, cover payroll, and invest in emerging markets. However, because offshore banking is so heavily associated with tax dodgers, the federal government keeps a close eye on any business with a foreign bank account, and requires entities with such accounts to file an annual Report of Foreign Bank and Financial Accounts (FBAR).
What is a FBAR?
This is a simple form that some entities with foreign bank accounts must file with the Department of Treasury. Officially called FinCEN Form 114, it asks for the filer’s personal information and the information related to any foreign accounts overseen. The bank’s name, type of account, and the maximum value of the account all have to be disclosed. (You can download the form at the Department of the Treasury’s website.)
It’s that time once again: time to whip out the finance books and try to figure out just how much you owe for quarterly estimated taxes, or QETs. More sitting down at the dining room table, going over numbers, scratching your head trying to figure out what this abbreviation stands for…
Wait, you don’t know what this is about? Quarterly estimated taxes are a big part of the small business owner’s life as they’re constantly buzzing around just around the corner, ready to pounce and make a mess. However, many small business owners still manage to forget about them, leading to headaches and possible fines.
Instead of putting them off, read our quick guide so you can get ahead of the game!
DBA stands for “doing business as” and allows your company to do business under a fictitious name (AKA one you made up) instead of your own personal name, names of your partners, or the name of your corporation or LLC. In order to do this, you must file for a DBA.
1) Does your company even need a DBA?
The first step in creating a DBA is determining if you even need one. The answer depends on whether your business operates as a sole proprietorship or as a corporation or LLC.
For Sole Proprietorships:
The only reason to not get a DBA is if you want your business to operate under your personal name only. Picking a business name will plant the seed for your brand to grow strong – and filing a DBA will protect it.
If your corporation or LLC wants to conduct any sort of business with a name that is different than the one you filed on your corporation/LLC paperwork, then you need a DBA.