Popular Business Misconceptions Cost You Money! -Part 1

Written by J. Stephen Pope


Continued from page 1

Some persons resistrepparttar idea of incorporating themselves because repparttar 106525 tax savings may not justifyrepparttar 106526 added costs of incorporation, annual minutes, and extra tax returns. However, incorporation gives advantages that go far beyond tax savings.

Insurance may give you some protection against loss. However, you may suffer business losses and lawsuits that may not be covered. For extra protection, consider incorporating yourself. The limited liability of your own corporation alone may justifyrepparttar 106527 additional cost and complexity.

Corporations may also be used for income-splitting with your family, as well as estate planning and retirement planning objectives. Additionally, corporations lend some credibility to smaller businesses and may enhance your image and prestige inrepparttar 106528 eyes of clients or suppliers.

Lower corporate tax rates will generally apply on small business income. Even in loss years, wages can be paid byrepparttar 106529 corporation to you so that you may utilize personal tax credits available. If unincorporated, these credits might be lost forever. The now larger corporate losses can be carried forward to future (hopefully more profitable) years.

A full analysis ofrepparttar 106530 advantages and disadvantages of incorporation is beyondrepparttar 106531 scope of this report. However, being incorporated may give you more flexibility and advantages than you originally anticipated. Certainly, it is not prudent to reject it as an option simply because it is more complicated and costly. In fact, it may be one ofrepparttar 106532 best investments you ever made.

Popular Misconception #4: ------------------------- "I really need an office out. ----------------------------- Being home-based makes me look amateur!" ---------------------------------------- Is A Home Office REALLY Professional? -------------------------------------

Many times small business persons makerepparttar 106533 mistake of generating unnecessary overhead in order to impress clients and prospects. Often this attitude leads to escalating debt and business failure. One such example is getting an impressive, but expensive, commercial office space.

Customers aren't stupid. They can see when such outside space is necessary or advantageous for them. They can also see when it is a waste of money and designed to fuel your ego. What matters most to clients is whether they are getting cost-effective results or not. If your product or service delivers such excellent value, your customers will be impressed and come back. In contrast, if one allows his ego to get inrepparttar 106534 way of satisfyingrepparttar 106535 customers' needs, they will go elsewhere.

Withrepparttar 106536 move to telecommuting, downsizing, networked communications, and home-based businesses, operating from your home office is actually smart and trendy. Can you think of a more appropriate location for a consulting firm specializing in home-based businesses? They of all businesses should setrepparttar 106537 example in cutting unnecessary expenses and operating efficiently.

This is not to say that there aren't any disadvantages to being home-based. One certainly must be well organized, disciplined, and willing to follow good time management principles. This alone could mark you as more professional than other businesses, home-based or not.

Expensive office space is notrepparttar 106538 answer to reflecting a professional image. If you are truly concerned about your image, offer quality service. Make sure that all your corporate communications (telephone, websites, printed materials, et cetera) reflectrepparttar 106539 professional nature of your business.

J. Stephen Pope, President of Pope Consulting Inc., http://www.popeconsultinginc.com/ has been helping clients to earn maximum business profits for over twenty years.

For more valuable Work at Home Business Ideas, visit: http://www.yenommarketinginc.com/


Popular Business Misconceptions Cost You Money! -Part 2

Written by J. Stephen Pope


Continued from page 1

To save on payroll taxes and workers' compensation premiums, many employers arrange their affairs in such a way that those working for them are self-employed, independent contractors. This is good tax planning.

Onrepparttar other hand, some employers takerepparttar 106524 position that all those working for them are self-employed, whether they are or not. Although it is tempting to eliminate payroll taxes and workers' compensation premiums, care should be taken to do so legally.

Whether those working for you are employed or self-employed is a question of fact (which can be determined byrepparttar 106525 Courts). Do you supplyrepparttar 106526 tools and vehicles? Do you determinerepparttar 106527 working hours? Do you haverepparttar 106528 right to control howrepparttar 106529 job will be done? Do you pay a flat-rate or by-the-hour or a salary? Does your worker have other clients?

By asking several such questions, a pattern will emerge as to whether your worker is employed or self-employed. If it turns out that your worker fits allrepparttar 106530 criteria of an employee, don't say he's self-employed. On audit, you would still be responsible forrepparttar 106531 payroll taxes (and penalties and interest as well).

Even if your workers are considered independent contractors byrepparttar 106532 Income Tax Department, it is still possible that they will be considered to be "workers" for purposes of Workers' Compensation legislation. Thus, it is repparttar 106533 responsibility ofrepparttar 106534 employer to determine whether such coverage is necessary or not. Failure to obtain proper coverage could subject you to substantial (and unnecessary) costs.

In review, calling someone self-employed, doesn't necessarily make them self-employed. If you have a dog, call it a dog. Your position that your dog is really a cat will not be successful. Likewise, make sure that your position regarding your workers is legally correct.

Popular Misconception #8: ------------------------- "My Accountant Charges Too Much. -------------------------------- I Can't Afford It Anymore." --------------------------- Is Your Accountant Worth His Fee? ---------------------------------

Many business persons view bookkeeping, accounting, and tax preparation as necessary evils. In their view, accounting fees are an expense to be reduced, deferred or even completely eliminated.

A good accountant, however, can give you benefits far in excess ofrepparttar 106535 fees charged. Well-designed accounting systems will enable you to extract meaningful financial information for your business that will help you to manage it properly, avoid business failure, and alert you to declining sales, excessive expenses, tax opportunities, cashflow problems, and many other vital concerns for your business.

Your accountant can save you lots of money withrepparttar 106536 advice you receive on tax and other business matters. As well, a competent accountant can be a valuable resource in discussing business problems and opportunities with you.

Popular Misconception #9: ------------------------- "Nobody Makes Money On The Internet." ------------------------------------- Can You REALLY Profit From The Internet? ----------------------------------------

Many people feel thatrepparttar 106537 internet is all hype. Many others feel that it is overrated. Still others are ofrepparttar 106538 opinion that it may be good for some types of business, but not theirs.

Typical comments heard include: "I've lost money onrepparttar 106539 internet...Major corporations have lost millions...Do you personally know anyone who has made money fromrepparttar 106540 internet?"

However, if you check outrepparttar 106541 list of recent billionaires, a high proportion of these are internet-related, and many of them under forty years of age. As well asrepparttar 106542 very rich, you can find many cases of more modest financial prosperity resulting from internet commerce.

It is true that many are losing money onrepparttar 106543 internet. It is also true that many don't know what they're doing. However, withrepparttar 106544 proper assistance, you, too, could profit fromrepparttar 106545 net.

J. Stephen Pope, President of Pope Consulting Inc., http://www.popeconsultinginc.com/ has been helping clients to earn maximum business profits for over twenty years.

For more valuable Work at Home Business Ideas, visit: http://www.yenommarketinginc.com/


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