Did you ever wonder why some people never seem to be able to keep money around? They get paid on Friday and all the money is gone before Monday? Well, in this post we’re going to talk about 5 habits that might be keeping a person broke. Habit #1- Not knowing your subscriptions Subscriptions can add up quickly. You can have $5 here, $10 dollars there. You should take a moment and review your bank statement or credit card statement to see what monthly subscriptions you have. You also need to determine what you use and do not use. Cancel the ones that are not being used. Keep an eye out for what you are being charged for in your subscriptions. Sometimes subscriptions plans can increase in price without you being aware so if something you were paying 10 bucks a month for now turned into 20 bucks. Habit #2 – Spontaneous Shopping Who does not like shopping for new things; rather it be clothes, electronics, or even shoes? There has to be a limit to what people can buy based on their budget. One way people dig themselves into a deeper hole is by not realizing how much they
What is a C-Corp? So you might be asking, what is a C-Corp and how is it taxed? A C-Corporation is a legal structure of business in which the owners and shareholders are separate from the corporation. This means that the income made by the owner is taxed separately than the corporation. This type of corporation offers unlimited growth potential through the sale of stock; which can attract investors. There is no limit to the number of shareholders a C-Corp can have. Also, C-Corporations limit the liability of investment holders and firm owners. This is because the most they can lose is the amount of investment they put into the company if the business were to fail. How is a C-Corp taxed? C-Corps pay corporate income tax on earnings before they distribute their profits to the shareholders. Distributing their profits to shareholders is most commonly known as a dividend. As mentioned before, the taxation of the corporation is separate from the owners and shareholders. It is important to note though that the dividends handed out to the shareholders have to be claimed on their personal taxes. This is what is commonly known as double taxation. How does a C-Corp operate?
Are you feeling overwhelmed with the worries that come with building your business? The journey to starting a business is different for everyone, but the common thing you’ll have with other owners are the long and hard hours of starting it. We know that it can be overwhelming having to run every aspect of your business yourself. When you want your business to succeed it is also worrisome that you might mess up in the process. Here we’ll focus on six of the most common mistakes new business owners make. Failing to have a business plan Creating a business plan can be difficult, but doing so is a necessity. A business plan shows what direction you see your business going in. In your business plan you want to include an executive summary as well as a company description. These two categories show why you are doing what you are. Next you want to include your market analysis which gives you an idea of how the economy and competition are doing in your area. You will also include how you plan to operate and run your business from the inside. This means day to day work, employees, yourself, etc. Going a
Do you need help understanding your business financial statements? You have come to the right place, here we will discuss the three main business financial statements. Starting a business can be nerve racking especially trying to figure out how much the business made or how much is coming out. That’s where financial statements come in and help you keep track of your business. Let’s expand your knowledge on the basics of business financials. What Are Financial Statements? Financial statements are written documents that outline a company’s operations as well as its financial success. Government organizations, accounting firms, and other entities frequently audit financial statements to assure they are precise and for reasons related to taxes, financing, or investments. The balance sheet, income statement, and cash flow statement are the three main financial statements for Businesses. Let us get into what each of them consist of. What is a Balance Sheet? A balance sheet is a summary of a company’s assets, liabilities, and shareholders’ equity. The Balance sheet gives insight about your business and its operations. Assets include two categories which are current and non-current assets. Current assets are cash equivalents, Accounts receivables, inventory, and prepaid expense. Non-current assets are properties,
You might find yourself asking why you were not approved for a loan or credit card. That decision was made based on many factors. Some of those reasons might be because there is a history of not paying on time, you do not have any credit yet, or you are adding too much debt into your accounts. If you are looking to improve your credit score, I will be listing some tips as well as what goes into your score. Ultimately you can use these to see how you can get an 800+ credit score! First, we will be breaking down the categories that are used to determine your score. Credit Score History Payment History- 35% 35% of your score is made up of your payment history. The largest portion of the score is going into whether you are paying on time or not. Make those payments on time! If you find that hard to do, set a reminder somewhere visible for you and put it a couple days prior to the due date. Credit Utilization-30% Another big chunk of your credit score goes into a ratio. This ratio is determined on how much credit you have available vs