Written by Jennifer Johnson

Continued from page 1

Aren't there any other matters to consider in deciding whether to incorporate or not?

Higher administration costs to comply with company law, payroll and bookkeeping is one factor. Another issue is pension planning. Extracting profits out ofrepparttar company as dividends rather than salary means that there will be no "net relevant earnings" and therefore pension contributions can't be made. Butrepparttar 125041 advent of stakeholder pension plans has meant that contributions up to œ3,600 per year can be made withoutrepparttar 125042 need for any earnings. If a person does not wish to transfer funds in existing plans into stakeholder because of high charges, there is a way out:repparttar 125043 best net relevant earnings (i.e. salary) in five consecutive years can be used for making contributions forrepparttar 125044 next five years, even if there were no salaries inrepparttar 125045 remainder four years. It is comforting to know that entitlement to basic state pension is not affected by taking a salary fromrepparttar 125046 company atrepparttar 125047 level of a person's personal allowances i.e. œ4,615.

Furthermore, an individual may decide not to bother with pension plans and instead invest in ISA. Often, these can be more efficient than pensions but that's besiderepparttar 125048 scope of this article. If that option is taken, no salary is necessary.

Another factor is business motoring. It might be tax advantageous for an unincorporated business that owns many cars not to incorporate because if these cars have some private use there will be benefits in kind taxed onrepparttar 125049 users. These are generally higher thanrepparttar 125050 straight apportionment between private and business for all car running costs inrepparttar 125051 case of sole traders.

The conclusion is that there can be considerable tax savings waitingrepparttar 125052 sole trader who decides to go downrepparttar 125053 road to incorporation. But, one needs to proceed with caution and careful planning. And don't forgetrepparttar 125054 biggest advantage of incorporation, which is Protection from Personal Liability. Incorporating is one ofrepparttar 125055 best ways to protect a business owner from personal liability. Shareholders of a company are generally not liable forrepparttar 125056 obligations ofrepparttar 125057 company. Creditors of a company may seek payment from its assets, but notrepparttar 125058 assets ofrepparttar 125059 shareholders. This means that business owners may engage in business without risking their homes or other personal property.

Thank you for takingrepparttar 125060 time to read this Article. I hope you've found it useful. If you have, please drop me an email and let me know what you think.

You can email me at...

Alternatively, you can visit our website at and read a series of other full length articles that presentrepparttar 125061 complete picture on a variety of interesting topics.

If you would like to know how to save tax and make sure that more of your hard earned cash stays with you to expand your business and increase your profits, we have a Free Special Report addressed to small businesses either starting up or already in business. This Exclusive Free Special Report is available automatically when you subscribe to our regular series of Free Newsletters on finance advice and tax planning by visiting our subscription area on our website It is complied from real life situations dealing with small business tax affairs for over 10 years and it is loaded with down-to-earth advice and practical, understandable examples.

LEGAL NOTICE Whilst every care has been taken inrepparttar 125062 preparation of this article,repparttar 125063 author cannot accept responsibility for any errors or omissions. Proper professional advice should be taken at all times.

We retain copyright forrepparttar 125064 contents of this article. Any unauthorized copying or onward distributions are prohibited without our consent.

Jennifer Johnson is the owner of Logo Design Zone. She can create a 100% unique, totally memorable logo for your business - for UNDER $200! Does your current logo make the grade? Take Logo Design Zone's free logo quiz and find out!

Power Promte for FREE!

Written by Terri Seymour

Continued from page 1

*Ezine Publishing - As I mentioned above, you should definitely be publishing an ezine to keep in contact with your website visitors and subscribers. Ezines themselves can be excellent income generators and they can also generate a lot of business for you.

Publishing a quality ezine is very important to your online business. Your subscribers will want helpful information and resources, not just a bunch of ads to read. By giving your subscribers what they want, you will become trusted and they will listen to what you have to say about products, programs, etc. To learn more about ezine publishing:

*Free Traffic Programs - Free traffic programs are a great way to get visitors to your site. Once they get there, it is up to you and your website to keep them there. Join several of these programs and take an hour or two a week and surf for visitors. For each program open a separate window and keep them all going at once. You will receive a lot more visitors that way. Here are some examples of these programs:

These are a few ofrepparttar more effective ways of advertising and promoting your business for FREE! There are many other ways, butrepparttar 125040 methods I have covered in this article are some ofrepparttar 125041 most effective, in my experience. Get started with each method and as you learn and get more experience, expand into more email groups, traffic programs, article writing and ad swapping. You will find that a lot ofrepparttar 125042 promotion methods go hand in hand and you will learn more and more ways to promote your business for FREE!

Much success to you andrepparttar 125043 best of luck with your online ventures.

Terri Seymour owns and operates is a website, ezine and service which provides the resources, tools, guidance and more to help you start, publish and promote your own ezine. You can contact Terri at Subscribe at or visit for lots more info.

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