If you incorporate in a tax-free state like Nevada or Delaware, there are no state income taxes. Therefore, if you’re in 28-percent tax bracket and shift $50,000 of your personal income into a corporation, you could save about $14,000 per year. (This figure includes money saved by not paying social security and Medicare taxes).

Corporations also enjoy ability to deduct business operating losses. In fact, they have very few restrictions on operating and capital losses. You can generally carry losses back three years forward for 15 years. But sole proprietorships have stricter rules. They’re also subject to a higher probability of a tax audit if there are losses.

Speaking of audits, that brings us to another benefit of incorporating. Corporate returns have fewer "red flags" than individual returns. Consequently, IRS conducts fewer audits on corporations than individuals.

Fringe Benefits and Other Deductions Corporations also enjoy a variety of fringe benefits and other deductions. A corporation can set up a 401(k), for example, that would allow you to exclude a higher amount of income than a regular IRA. And employee savings may also be doubled with a corporate matching program. Corporations also can deduct 100 percent of health insurance premiums paid on behalf of an owner-employee.

Additionally, a corporation can deduct other expenses like automobile insurance, education benefits and life insurance. But for sole proprietors, these expenses are subject to strict limitations (if deductible at all) and can be "red flags" that trigger an audit.

Your goal when hiring a VA is to ask very specific questions in regards to her work hours:

• Does she have standard Monday through Friday work hours? How about Saturday, Sunday?

• What is VA's policy for emergency and after-hours work?

• Does VA recognize national holidays and if so, which ones?

Also, verify VA's time zone. Remember that some parts of U. S. do not participate in twice-yearly time change in April and October.

It's critical you impart hours you need your VA to be available; it's even more important you confirm your Virtual Assistant’s availability.

Consideration #4: Services

Before you step into VA world, sit down and make a list of tasks you need to off-load. Remember, reason to hire a Virtual Assistant is to free up your valuable time so you can do what you do best: run your business and bring home bacon!

Here are a few examples of types of tasks to off-load to your Virtual Assistant:

Administrative: **Typing Projects **Proofreading **Research **Data Entry **E-mail Management **Voice Mail Management

Technical: **Website Design & Maintenance **HTML Coding **FTP Services

Creative: **Copywriting **Marketing

Financial: **Bookkeeping **Payroll **Financial Report

Make that list and check it twice. As you VA shop, keep your list handy to see what types of tasks Virtual Assistant can handle for you.

Consideration #5: Rates

What’s that … you think I do this for free? On contrary, my dear business owner. Look, I’m a small business owner, just like you are. I work hard every day to earn it, just like you do. I expect to get paid for my valuable time and for services I provide, just like you do.

Rates, rates, rates. Virtual Assistants charge different rates for different types of services. Some VAs charge overtime, after-hours and holiday rates. Typically, you should expect to pay anywhere from $20.00 - $60.00 (sometimes more, sometimes less) per hour. You should also ask VA if she offers project-based rates.

Ask VA if she charges overtime or after-hours rates. Ask her if she charges different rates for work performed on holidays, as well.

Consideration #6: Billing Policies

The work is complete and for your VA, it’s time to bill. When you interview VAs, ask how they bill, frequency of billing and any billing policies they have in place, such as Net15, Payable Upon Receipt, etc. Does VA offer PayPal as a payment option, or does she prefer to be paid via check?

Consideration #7: Do You LIKE This Person

My final tip? Ask yourself, "Do I like this person? Can I work with this person, day in and day out?" Life is too short and too precious to waste time in a business relationship which does not make you happy and which does not fulfill your needs.

Hiring a Virtual Assistant can be a lengthy process. Take time you need to find VA who’s just right for you and your business.

Copyright 2005 Lori Davis. All rights reserved.