One of the first difficult decisions you must make when starting a business is choosing your business entity type. It can get confusing to research what the differences are and what each entity means. I will be breaking down each one below so that you’ll have a better understanding of just what you can set up. What is a Business Structure? A business structure is a legal/government classification which determines several factors in your business. Your type of entity determines the type of taxation used for your business, the personal liability attached to it, and lastly how much and what type of paper work you must file. These factors can become obstacles if you choose the wrong entity which is why it is important to research before your form one. Of course, you can always change your entity in the future, but it usually involves a lot of confusion between your business and IRS! Sole Proprietorship A sole proprietorship is the most common entity used by small businesses because it can often be the simplest. It’s formed with minimal paperwork in some states and absolutely none in others. Due to there only being a single owner, this person has complete
Wondering how to file back tax returns? Filling back taxes can be very nerve wrecking considering that one might not have all documents, or might not have the money to pay any taxes that might be owed. But where do you start? What steps to you actually take? So as to avoid further problems, this post will tell you the exact steps that one needs to take to get all those back tax returns filed ASAP! Gather Documents This is your starting point. This will include looking through piles of paperwork from the previous years. You want to find any W2’s, 1099’s, interest paid, dividends paid, mortgage statements, property taxes, stock sales and more. Remember original documents are always best. This is because it will include things like state taxes withheld that might not be included on an IRS transcript. So if you know who gave you income in a particular year try contacting your current/former employer and requesting an original copy for your paperwork. Now, after looking through all the paperwork you have, begin analyzing what you do have versus what think you’re missing. Now how exactly do you do this? No need to panic, check out the next
Need to open a bank account but confused on what type of “bank” is best for you? Big Bank vs. Online Bank vs. Credit Union – what’s the difference? Learn the pros and cons of each type of lending institution and how to choose the best one based on YOUR wants, needs and goals from the information in this post! Traditional Banks When people hear the term traditional bank, they typically think of one that has a brick and mortar presence. They also tend to think of the big four players in the industry, which are Bank of America, Citigroup, JP Morgan Chase and Wells Fargo. Now while these are the largest players in this category, it’s worth noting that the category is very broad and includes regional banks such as Regions Financial and BB&T as well as smaller local, community and neighborhood banks. The biggest reasons to choose a traditional bank are technology and convenience. The biggest drawbacks to them tend to be an impersonal feeling when it comes to the customer experience, fees being on the higher end when compared to other types of banks and interest rates on deposit accounts being on the low end. Now let
As we discussed in this post, a budget is a spending plan which can help you become more organized. The purpose of this is meeting your expenses, your personal goals and tracking your income. Starting and maintaining a budgeting plan takes a lot of self-control and discipline which can be managed through organizing your money and being consistent. But is there such a thing as an “ideal” budget? Well, we think there is! Creating your ideal budget An ideal budget tries to align your spending to what is normal or considered typical for an American household. For example, does it seem “normal” to spend 75% of your monthly income on housing? We don’t think so either! So an ideal budget will try and align the spending of your income along the following categories: Now after knowing what an ideal budgeting plan looks like, go out and find all your sources of income. This can include your salary, investments (such as savings account, money market account, or mutual fund), passive income (such as rent income), and retirement income. After determining your total income divide it into the previous categories and start looking to see if the numbers seem reasonable and achievable.
If you’re thinking about or just started your business, we want to tell you about a valuable resource. This resource is dedicated to small businesses and provides counseling, capital, and contracting expertise and is the the nation’s ONLY Federal go-to resource and voice for small businesses. What is the SBA and what does it stand for? The Small Business Administration, or SBA, is an independent government agency which intends to provide support towards small businesses and entrepreneurs. They do this to promote growth, recovery, and confidence within small businesses. SBA was created in 1953 becoming the only federal agency fully dedicated to help small businesses. How is the SBA organized? Headquarters Offices These offices are a little of everything. Therefore, they are broken down intro offices of advocacy, contracting, counseling, disaster assistance, financial assistance, international trade, and management. To add onto this, they also share small business audiences to make people feel included and supported. In this section they have Women’s Business Ownership, Office of Native American Affairs, and Office of Veterans Business Development. Regional Offices This page provides additional support to find an exact location. This provides you the ability to find what you are looking for in an