Business Basics: Initial and Annual Reports/Statements of Information

Welcome to our weekly Business Basics post! In case you missed last week’s entry to the series, we are dedicating every Tuesday to helping explain the facets and aspects of starting and running a business that typically get overlooked.

Initial and annual reports (also known in some states as Statements of Information), while not particularly glamorous, keep your business in good standing. Plus if you misfile them, or file them late, your corporation or LLC could be slammed with fees, or even dissolution. Two things that you clearly want to avoid. But what are these reports, and what are they supposed to say?
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Mega Millions for All!

If you haven’t heard- the 42 state lotto, Mega Millions is over half a billion dollars. Since we’re finishing out tax season we thought it would be good to highlight one last tax post. We’ll discuss the taxes on your lotto winnings, as well as gross income generally.

If you are from New Hampshire, Tennessee, Texas, South Dakota, Washington, California, Pennsylvania or Delaware you will win the biggest in tonight’s drawing- winning between 3% and 9% more than if you were from any other state because you won’t have to pay state income taxes. However, all winners must count the winnings as income and are subject to the Federal income tax of 35% (or maybe more depending on your specific situation). Continue reading

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Speak Out: Small Biz Open Mic Gives Entrepreneurs an Outlet to Express Business Concerns

On Tuesday, the National Federation of Independent Businesses (NFIB) released their small business optimism index report for August. Unfortunately, the Optimism Index dropped for the sixth consecutive month. This report suggests that American small business owners are very pessimistic and uncertain about the future. This doesn’t come as a surprise for many small business owners who have voiced concerns given the current economy.

The report also suggests that small business owners aren’t optimistic because they are facing low consumer demand coupled with new regulations from Washington. High taxation and an uncertain economy contribute to the pessimism. In order to combat the growing problem, the House Small Business Committee announced Tuesday a new interactive online forum, Small Biz Open Mic, that it says gives U.S. entrepreneurs a chance to speak directly with policy makers. The site is a blog-style media forum that invites small business owners to leave comments and share stories. Continue reading

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