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 127271 advent of stakeholder pension plans has meant that contributions up to œ3,600 per year can be made withoutrepparttar 127272 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 127273 best net relevant earnings (i.e. salary) in five consecutive years can be used for making contributions forrepparttar 127274 next five years, even if there were no salaries inrepparttar 127275 remainder four years. It is comforting to know that entitlement to basic state pension is not affected by taking a salary fromrepparttar 127276 company atrepparttar 127277 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 127278 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 127279 users. These are generally higher thanrepparttar 127280 straight apportionment between private and business for all car running costs inrepparttar 127281 case of sole traders.

The conclusion is that there can be considerable tax savings waitingrepparttar 127282 sole trader who decides to go downrepparttar 127283 road to incorporation. But, one needs to proceed with caution and careful planning. And don't forgetrepparttar 127284 biggest advantage of incorporation, which is Protection from Personal Liability. Incorporating is one ofrepparttar 127285 best ways to protect a business owner from personal liability. Shareholders of a company are generally not liable forrepparttar 127286 obligations ofrepparttar 127287 company. Creditors of a company may seek payment from its assets, but notrepparttar 127288 assets ofrepparttar 127289 shareholders. This means that business owners may engage in business without risking their homes or other personal property.

Thank you for takingrepparttar 127290 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 127291 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 127292 preparation of this article,repparttar 127293 author cannot accept responsibility for any errors or omissions. Proper professional advice should be taken at all times.

We retain copyright forrepparttar 127294 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!

How to Write a Fundraising Letter

Written by Linda Elizabeth Alexander

Continued from page 1

It's much harder with a one or two page letter to state your case in a number of different ways than it is with a four page letter. With a longer letter, you have much more room to convincerepparttar reader to give.

Don't forget to ask forrepparttar 127270 money! Don't just tell them about your program, ask directly for their help. Also, tell them how much to give so they have an idea of what is needed. "Our education program needs 25 computers, at $2,000 each. If you can't afford a whole computer, a donation of only $200 will buy a printer."

You will get donations of at least $200.

Appeal to readers' sense of urgency by providing a deadline. "We need these funds by January 1 in order to carry out our spring awards event." If you don't get them to act right away, they probably won't act at all.

Forrepparttar 127271 maximum reply, include a return envelope. Make it easy for people to donate by telling them how! "Just checkrepparttar 127272 box onrepparttar 127273 reply card and mail it with your check inrepparttar 127274 enclosed, postage paid reply envelope." It may sound silly to you, but people respond to clear instructions.

Remember to include a PS atrepparttar 127275 bottom. The bulk of your letter will go unread by most of your readers. A post script is a last-chance effort to summarize your whole letter and get your readers to act on it.

As with any direct mail piece, it's good to make follow up phone calls one or two weeks after you mail repparttar 127276 letter. Ask ifrepparttar 127277 letter was received and if you can answer any questions. Of course, you won't always reachrepparttar 127278 right person, but if you follow up you greatly increase your chances of getting a donation.

Writing successful fundraising letters isn't rocket science. These tips are based on years of trial and error; if you follow them wisely your campaign will be successful. Plan early, be organized, andrepparttar 127279 letter writing will take care of itself!

===================================================== Linda Elizabeth Alexander writes marketing copy for nonprofits. When a deadline looms and you're overworked and understaffed, contact her to come to your rescue. =====================================================

Linda Elizabeth Alexander writes marketing copy for nonprofits. When a deadline looms and you're overworked and understaffed, contact her to come to your rescue. =====================================================

    <Back to Page 1 © 2005
Terms of Use